Final Expense/Burial Insurance In Texas Overview
last updated on March 7, 2022Are you a Texas resident looking into funeral insurance to cover any end-of-life expenses?
Have you been researching your options and important factors to consider? Missing the fine print or purchasing the wrong coverage can be disastrous.
Everyone knows that buying insurance is stressful and can be challenging. The fine print can be confusing and if you don’t choose the right amount of coverage, you may not have enough benefits when you need them.
It is so easy to miss important details, did you know some insurance policies have fine print that allows the provider to automatically cancel your policy once you are above a certain age? This would mean if you pass after your coverage is canceled your family would get nothing!
Fortunately, I’m here to tell you that there ARE final expense coverage policies available in Texas that do NOT cancel automatically! Awesome right? In this article, we are going to show you EXACTLY what to look for to get the best VALUE (and best-priced) burial insurance available!
Also, we’ll help you answer:
- How much coverage is enough?
- What policy should I buy?
- WHat will a funeral cost in 20 years?
Read on to learn more.
NOTE: For a free burial insurance quote specific to the state of Texas click the Get A Quote Button or call 888 626 0439 and one of our friendly life insurance specialists would be happy to provide you with answers and a free quote in less than five minutes.
Quick Navigation Article Links
- How Does Burial Insurance/Final Expense Insurance In Texas Work?
- What Does Burial Insurance Cover?
- Final Expense Insurance Versus Life Insurance
- Average Funeral Cost In Texas
- Funeral Price Inflation In Texas
- If I Live In Texas Is Funeral/Burial Insurance Worth Having
- What Happens If I Do Not Have A Burial Plan In Texas
- Is There An Age Limit For Burial Insurance
- Our Favorite Burial Insurance Providers in Texas
- What Is The Cheapest Burial Insurance Plan In Texas
- How Much Burial Insurance Coverage Should I Get
- How Do I Buy A Burial Insurance Policy
- FAQs
- Terms To Understand When Talking About Insurance
How Does Burial Insurance/Final Expense Insurance In Texas Work?
Final expense insurance is an insurance policy that covers your funeral and end-of-life expenses. This insurance protects the surviving family members from extensive debt. In Texas, there can be a lot of unexpected end-of-life expenses so it is wise to make preparations to cover them.
Planning ahead can save your loved one the hassle of trying to pay for the funeral expenses out of pocket. It will reduce their stress and give them more time to process their loss. Preparing ahead of time is recommended for all individuals, especially parents.
Final expense insurance can also be called burial insurance or funeral insurance. All three of those terms will be used in this article to describe an insurance policy that covers burial expenses.
A burial insurance policy can cover one individual or it can cover a whole family. Each insurance provider will offer different features and packages to their customers.
To purchase a funeral insurance plan you need to contact an insurance provider and collect a quote. We at BuyLifeInsuranceForBurial.com can help you find the appropriate policy that meets your needs and budget.
When you purchase a burial insurance plan you must select and name a beneficiary. Upon your death, the beneficiary is the only person who can use the insurance money to cover your expenses. Choose a responsible and capable individual who you trust.
What Does Burial Insurance Cover?
Final expense insurance policies cover expenses involved in the memorial, funeral, and burial of the deceased. Burial insurance can also be used to pay off debts or medical bills the deceased left behind.
Final expense insurance plans may cover:
- Cremation costs
- Burial costs
- Casket/Urn
- Preparation Of The Body
- Funeral expenses
- Service Expenses
Each plan may have different coverage limits and could include or exclude certain things. Make sure to read through each plan you are considering carefully. Ask the agent if you do not understand something.
What’s The Difference Between Final Expense Insurance Versus Life Insurance?
Life insurance and final expense insurance are very similar. The only difference between them is that life insurance plans pay out a much higher benefit to cover the deceased income and provide for the survivors while funeral insurance pays out a smaller amount to cover end-of-life expenses.
So life insurance is money in your family members’ pockets to cover daily expenses, mortgage, and other expenses.
If your life insurance plan offers a final expense insurance option it may be termed as a death benefit. Read through the policy to confirm your plan offers this option.
Final expense insurance usually has less face value than a life insurance plan because it is only meant to cover expenses involved in a funeral and burial.
Average Funeral Cost In Texas
The national average funeral cost for the service, flowers, burial, and plot is $7,000 to $12,000. The national average for cremation and a simple funeral service is $6,000 to $7,000.
Now compare the average funeral in Texas in 2021 which was $8,755. However, the cost is more likely to be around $10,000 after all expenses are included. In Texas, the average cremation funeral in 2021 cost $4,938.
Keep in mind the casket, headstone, burial plot, flowers, and transportation are separate from the service fees. These other expenses will cause your final price to go even higher.
Reference this chart to find out the specific products and service costs.
| Item | Average Cost |
| Transporting the body to the funeral home | $350 |
| Hearse | $340 |
| Preparing the body | $255 |
| Embalming | $750 |
| Casket (simple wood casket) | $2,898 |
| Cremation | $350 |
| Urn (simple urn) | $250 |
| Flowers | variable |
| Burial Plot (basic) | $1000 – $4000 |
| Headstone (basic) | $199 – $10,000 |
| Funeral Facilities For Ceremony | $500 |
| Flower Car | $75 |
| Sign-In Book | $120 |
| Printed Materials | $175 |
| Cross | $25 |
Other expenses to consider when someone passes are travel expenses for the family and legal expenses if your family needs to hire a lawyer.
Even the simplest of funerals can add up to thousands of dollars. If you go for an all-out funeral with a large service.
Average Funeral And Cremation Cost In Texas By City
Now let’s take a closer look at average costs for funeral and cremation services in Texas major cities per the NFDA’s cost calculations:
San Antonio
| Item | Average Cost |
| Direct Cremation Service Fee | $2,039 |
| Immediate Burial Service Fee | $3,903 |
| Cremation Memorial Service Fee | $6,096 |
| Full Burial Service Fee | $7,328 |
Fort Worth
| Item | Cost |
| Direct Cremation Service Fee | $1,819 |
| Immediate Burial Service Fee | $3,701 |
| Cremation Memorial Service Fee | $6,245 |
| Full Burial Service Fee | $7,650 |
Houston
| Item | Cost |
| Direct Cremation Service Fee | $1,634 |
| Immediate Burial Service Fee | $4,508 |
| Cremation Memorial Service Fee | $6,712 |
| Full Burial Service Fee | $7,757 |
Keep in mind, those are averages. If you have a larger funeral, add catering, flowers, and upgrade your casket or urn add a few thousand to your budget if not more.
And it doesn’t end there, unfortunately.
Funeral Price Inflation In Texas
Each year the costs involved in a funeral, burial, and cremation rise. Inflation is a predictable factor that affects everything we purchase.
Funeral expenses rise at an average of roughly 5% a year. Inflation can be between 3.5% to 6.4% a year depending on the financial market and the rising cost of materials and labor.
So if a very basic funeral costs roughly $10,000 in 2021, in 2031 it would cost between $13,500 – $16,400.
However, since the pandemic, the cost of caskets has increased 20% to 30%. This is because they are usually shipped overseas. It is now more challenging to find the materials and ship a finished casket.
Take a look at this chart which shows the estimated average inflation we expect to see in the next 30 years in the state of Texas.
With average yearly inflation of 5%, by 2050, you can expect to pay roughly $30,000 for a funeral!
The point? Funeral insurance is a safe and secure way to prepare to cover your funeral expenses. The best choice is to prepare to cover the cost of a funeral now and in the future. If you are under 50, you need to factor in inflation.
If I Live In Texas Is Funeral Insurance Worth Having?
As we have considered, the cost of funerals and cremations in Texas can easily reach $7,000.
Having an insurance policy will reduce the burden and stress on your loved ones in the case of your death. Putting into place an insurance plan that will cover all your funeral expenses can give you confidence that your funeral will be taken care of in the event of your death.
If you already have a sufficient amount of money saved to cover your burial expenses then you may decide not to purchase a final expense insurance policy. But keep in mind, as mentioned above, the cost of funerals and burials rises every year.
$7,000 this year will cover the most basic funeral. But in 20 years it may not even cover the service fee!
Consider the following factors when deciding if you want burial insurance:
- Your current financial situation
- Any current life insurance plan you may have
- Your family members financial situation
- The services and items you want at your funeral. As mentioned before a very simple funeral will easily reach $7,000. A large funeral with many upgrades will easily reach $20,000.
- The money you have already saved/set aside
- Legal and estate settlement costs
- Unpaid debts
- The unknown expenses and fees you are not aware of. These can catch surviving family members by surprise.
Once you have an estimate you need to ask questions about where you will get the funds from. Can your family afford to pay $10,000 to $30,000 for your funeral? Even if they can, do you want to leave that burden for them?
If you find after calculating your funeral expense, the expense is more than you are prepared for, purchasing a burial insurance plan is a VERY wise idea! Contact us today by clicking the Get A Quote Button or calling 888 626 0439.
What Would Happen If I Do Not Have A Burial Insurance Plan In Texas?
If you do not have a burial insurance plan or any kind of life insurance it may cause chaos in the event of your death. How?
You family will be forced to come up with thousands of dollars within a week or two to cover your funeral. If they cannot do that, they may have no other option but to allow the local government to bury your body.
If your family cannot collect that amount needed to cover your funeral expenses then they will have a few options.
- They could cremate the remains and the funeral home would dispose of them. They would have to forgo a service and any upgrades.
- If there is any money left in your estate the family could use it to cover the expenses.
- They could go into debt to cover the expenses. They could take out a loan or a funeral loan. A funeral loan has high-interest rates.
- They could find an assistance program in their state that helps cover the cost of your funeral.
In some cases, the family chooses to abandon the remains and the funeral home is left to take care of everything. If the body is abandoned, the count or state of Texas would decide what to do with the body.
Burying your loved one the way they would have wanted can help the family to grieve and process the loss. It is best to avoid leaving your family in this situation.
What Is A Pauper’s Grave?
A “paupers” grave is a grave for poor individuals or unclaimed bodies. The burial is covered by the public.
The body will either be buried in a plywood casket or cremated and the remains disposed of. In Texas, it is not required to bury a body in a casket so in some cases the body may be buried in a cloth.
This is a highly undignified burial and provides no opportunity for a grieving family to visit the body and reminisce. You may have to share the burial plot with another corpse.
The county could even decide to bury the body in a mass grave. Unfortunately, mass graves are still used when there is not enough room to bury each body separately. This is by far the worst way to bury any loved one.
Click this link to read more about a paupers grave.
In Texas, the family must provide proof they cannot cover the burial expenses and sign a Paupers Oath.
Is There An Age Limit For Burial Insurance?
Each insurance provider has its own age limits on who can purchase burial insurance. Generally, you can purchase burial insurance before the age of 80-85.
However, there are providers in Texas that will accept applications of an individual up to age 90.
However, there are plans available to individuals outside of those ages. There are life insurance policies available for children that may include a death benefit.
Our Favorite Insurance Providers In Texas
Our favorite insurance providers in Texas are:
- Aetna
- Prosperity
- Mutual Of Omaha
Aetna offers coverage in Texas with benefits of $2,000 to $50,000. Your coverage and premium are subject to your age. The age limit is 40-89 years old. They accept bank drafts only.
There is a two-year look back on your medical history. This means Aetna will look into your medical history for the past two years when you apply.
The client doesn’t have to sign anything. Aetna uses a verification system that uses a passcode instead of verbal or signature verification.
This is a good choice for relatively healthy individuals who have not had liver disease in the last two years, or a heart attack or other serious illnesses in the last year.
Prosperity provides $1,500 to $35,000. The age limit is 50 to 80 years old. Prosperity accepts bank draft, debit/credit, and Direct Express payments. The application can be filled out on paper or through an e-app or v-app.
They offer first-day full coverage and partial first-day full coverage. You get the decision when the virtual application is submitted.
They have a two-year look back on certain medical conditions. This could affect your coverage or insurability.
Fun Fact: You can vape, chew, dip, smoke a pipe, or smoke weed and still have coverage.
This is a good provider for moderately healthy to very healthy people.
Mutual Of Omaha offers coverage of up to $2,000 to $40,000. The age limit is 45 to 85 years old. They accept bank drafts only and have a convenient e-app. The application process is quick and straightforward.
They have a two-year look back on cardiac events, and it will accept certain cancer medication use and blood thinner use. As long as diabetes was diagnosed after 50, they may accept you.
The price for policies is competitive and it is a good option for moderately healthy individuals.
The only downside, once you sign up for a policy Mutual Of Omaha will continue to offer you other policies and add-on options. If you want to opt-out of these offers you need to send back a form that opts you out of these promotions.
What Is The Cheapest Burial Insurance Plan In Texas?
The cheapest burial insurance plan depends on the insurance plans features and the qualifications. It can be affected by your health and age.
Our agents have access to over 15 different insurance providers. This allows us to do the shopping for you to find the best plan for you at the most reasonable price.
Click the Get A Quote Button to find out the cheapest burial insurance available to you or call 888 626 0439 and one of our agents would be happy to provide you with answers and a free quote in less than five minutes.
How Much Burial Insurance Coverage Should I Get?
The best burial insurance plan will cover what a funeral/cremation and all other expenses involved would cost today and in the future. As mentioned before, burial becomes more expensive each year.
We have seen prices jump as high as 30% for some products and burial-related expenses.
In Texas, it is a smart idea to have coverage between $10,000 to $20,000, if you are older. If you are younger you need to start with at least $20,000 and slowly increase your coverage periodically. As we saw in the chart, by 2050 it is very likely funerals will cost around $30,000.
Your plan will need to factor in inflation. Either way, having some form of coverage is a protection for you and your loved ones.
Ultimately, your coverage should be enough to cover all your funeral and burial expenses, inflation, and other debts without putting a burden on those you love.
Make sure you know the kind of funeral products you would like, the service you want, and how you want to be buried. This will help determine the coverage amount you need.
How Do I Buy A Burial Insurance Policy?
When getting final expense insurance in Texas you work with a Captive or Independent insurance agent.
Captive Insurance Agents work with only ONE insurance provider. The drawbacks here are this agent will recommend only one provider and will not compare prices with other providers.
An Independent Insurance Agent works on their own and can provide policies from many different providers. They shop around for you and can provide more flexible options.
Once you choose your agent, you will discuss your health, budget, and needs. The agent will recommend options, you choose one and complete the application.
We provide insurance assistance and our agents are available to answer any questions you have. Give us a call to get a free quote and learn the options that are available to you.
For a free burial insurance quote specific to the state of Texas click the Get A Quote Button or call 888 626 0439 and one of our friendly life insurance specialists would be happy to provide you with answers and a free quote in less than five minutes.
FAQs About Getting Burial Insurance In Texas
What If I Have Pre-existing Health Issues, Can I Still Be Covered?
Yes, absolutely. Each provider has different requirements, however, burial insurance applications usually have fewer questions than other kinds of insurance policies.
Even if you have had health issues recently, you will qualify for some kind of final expense insurance.
There are Guaranteed Acceptance policies. These policies ask no questions and guarantee coverage acceptance. Contact one of our agents by clicking the Get A Quote Now button or calling 888 626 0439.
What Questions Will I Be Asked?
When purchasing a burial insurance plan you will need to fill out a form to apply for coverage. This form will collect your personal information and ask you a few general questions regarding your health.
Some applications have as little as two questions while other application forms ask upwards of 10 questions. There is one application that asks NO questions. Read the next heading to learn more.
What Is Guaranteed Acceptance/Guaranteed Issue?
Guaranteed Acceptance means a provider will accept anyone when they apply for an insurance policy. This is a 100% guaranteed application.
No questions asked, as soon as your application you will be accepted. Not every provider offers guaranteed acceptance. Guaranteed Issue is a good plan for someone with many health issues.
These policies are usually the most expensive type of insurance coverage because the provider is taking on more risk by asking no questions.
Can I Have My Ashes Scattered In Texas?
Yes, you are permitted to have your ashes scattered over uninhabited public property, private property as long as you have the owner’s consent, or a public waterway or sea.
If you plan to have your ashes spread over water you need to check the federal Clean Water Act for rules.
What Else Should I Prepare In The Case Of My Death In Texas?
Preparing a will, funeral wishes documents, and simplifying your estate can go a long way. Getting your affairs in order can save your family years.
Make sure to visit a local lawyer so your legal documents meet the Texas laws.
The basic things to consider are:
- Will, clearly delegate assets.
- Funeral Expenses, provide savings, burial insurance, or pre-need insurance.
- Estate settlement costs and legal fees
- Assets you currently own and the upkeep involved.
- Collect your passwords and important documents in a safe place that can be located by a trusted family.
What Is The Free Look Period?
This is a period of time where you can sign up for a policy, see if you like it, and cancel if you don’t like it. If you are within the free look period you will be refunded any money you paid the insurer.
The free look period in Texas is 10-20 days. If you go to cancel your plan after 20 days the provider does not have to refund you.
Can I Have Multiple Burial Insurance Policies At The Same Time?
There are no legal limitations to the number of life insurance and/or burial insurance policies you can hold. As you get older and your circumstances change your goals may also change.
You can decide to purchase a higher coverage insurance policy later in life.
You can own a whole life insurance policy, an additional policy to cover your income and family’s needs, as well as a final expense policy. The amount of policies you hold is up to you.
The only factors you will need to consider are the amount all your policies add up to. You need to financially qualify for the level of combined coverage you have.
You may decide to purchase a policy rider instead of a completely separate insurance policy. This can reduce the hassle involved.
Terms To Understand When Talking About Burial And Final Expense Insurance
Death Benefit – a one-time payment from your life insurance provide upon the policy holder’s death. In some cases, this can be considered Final Expense insurance but not always.
Beneficiary – the person you designate the benefits and payouts to go to.
Lapsed – when the policyholder fails to pay the premium.
Term – the period you are covered by your insurance policy. This could be 2 weeks for travel insurance or 45 years for life insurance.
Premium – the amount you are required to regularly pay the insurance provider to keep your coverage.
Policy Rider – extra coverage you can add to an existing policy. If your circumstances change, getting a policy rider will allow you to increase your coverage.
Term Life Policy – this is life insurance that provides insurance coverage at a fixed payment rate for a set period. You lock in the premium you will pay for an agreed-upon amount of time.
Whole Life Insurance – a life insurance policy that will stay in force for the entire life of the policyholder. The premiums are fixed and death benefits are not usually offered with this insurance plan. Sometimes called straight life, ordinary life, permanent life insurance, or whole of life assurance.
Universal Life Insurance – this is a type of insurance policy mainly sold in the United States. This is permanent insurance that stays active as long as the policyholder pays the premiums. This policy offers flexible premiums and death benefits. This insurance also has a cash value factor.
Pre-need Insurance – this is an option where an individual pays a funeral home for their funeral costs before they pass. The individual can choose their service, casket or urn, and other details.
Insurability – this refers to whether or not an individual qualifies to be insured under a policy.