7 Common Mistakes Seniors Make When Shopping for Burial Insurance — And How to Avoid Them

By Matthew Gratt, Licensed Agent, NPN 21590619

If you’re looking for burial insurance — also called final expense or funeral insurance — the process can feel overwhelming. You’ve likely seen the Facebook ads promising “state-regulated programs” that aren’t actually free. Maybe you filled out one form online, only to have your phone ring off the hook with calls from 38 different random people.

In this environment, it’s hard to know who to trust.

Below are the most common mistakes people make when buying this important protection — and simple ways to avoid them.

Mistake #1: Not Shopping Around

Would you buy something at the grocery store without looking at the prices? Probably not. Yet many people buy a burial policy from the first agent they speak with or from a company they saw on TV. These agents often work for just one company (they’re “captive agents”) and can only offer their single product, whether it fits you or not.

Rates and underwriting vary dramatically between companies. One company might decline you for COPD, while another offers you a good rate. Some companies only do business in some states — just walking over a state line can change what rates are available.

The fix: Compare quotes from at least three to five different insurance companies. You can do this yourself, or work with an independent agent or broker who shops the market on your behalf.

For example, for day-1 coverage for a 70-year-old woman in Tennessee with diabetes and high blood pressure, here are real rates from a few of our carriers:

$12 a month doesn’t sound like much, but after 5 years of monthly payments, this customer would pay more than $715 for the exact same amount of coverage. That could’ve gone to your family, your church, or taken your grandchildren to lunch. It pays to shop around.

Call or text 512-649-7977

Mistake #2: Believing It’s “Free” or a “Government Burial Benefit”

Let’s be clear: there is no government program that gives seniors thousands of dollars of free burial insurance. Facebook ads that imply this are misleading. Likewise, be wary of TV commercials offering coverage for just $9.95 a month — that low price typically buys one “unit” of coverage, which might only be $1,000 to $2,000, not nearly enough to cover the cost of a modern funeral.

The fix: Be realistic. A quality burial policy with a meaningful death benefit (we recommend at least $5,000–$10,000) typically costs between $50 and $200 per month, depending on age, gender, and health.

Sample policies

Mistake #3: Using a Direct Express Card for Payments

Many people receive their Social Security benefits on a Direct Express card. (If you don’t specify a bank when you sign up for Social Security, you’ll get a Direct Express card by default.) While convenient, using it for life insurance can be a costly mistake. Many of the best insurance companies either won’t accept it or will charge you a higher rate. One well-known company charges an 8% premium increase for using something other than a bank account.

The fix: Set up a free checking account with a local bank or credit union for your Social Security direct deposits. Many banks offer special accounts for seniors with no monthly fees. This simple step gives you access to the best carriers and the lowest rates.

Mistake #4: Falling for Fake Urgency and “Open Enrollment”

You may see ads claiming you can only buy a policy during a limited “open enrollment” period. This is a high-pressure sales tactic. Some health insurance products have enrollment periods; traditional life insurance does not. The National Association of Insurance Commissioners (NAIC) specifically prohibits agents from using this misleading language.

The fix: Ignore any advertisement that claims “open enrollment for life insurance ends in 3 days!” You should still get coverage sooner rather than later — prices go up as you age and your health can change — but you’re not bound by an imaginary deadline.

Mistake #5: Hiding Health Information

It can be tempting to avoid mentioning a past health issue or a current medication, hoping the insurance company won’t notice. It will backfire. Carriers pull your prescription history and review medical records electronically. When they find something that wasn’t disclosed, your application can be declined or your rate increased further.

The fix: Be completely honest with your agent. A good agent is your advocate. When they have the full picture, they can match you with the carrier most likely to approve you at the best possible rate.

Mistake #6: Giving Your Information to a “Lead” Website

Ever filled out a form online, only to have your phone explode with calls and texts from dozens of unknown numbers? You likely submitted to a “lead-generation” site. These companies don’t sell insurance — they sell your contact information to as many agents as possible.

The fix: Work directly with one licensed agent or carrier so one person calls you. Before entering your information on a website, scroll to the bottom of the page. Look for a licensed agent’s name, a physical address, and an NPN (National Producer Number). If the site only says “we connect you with insurance professionals,” leave and find one staffed by actual, licensed agents.

Mistake #7: Not Understanding if You’re Buying a Permanent or Term Policy

The entire purpose of burial insurance is to be there when you pass away, whenever that may be. Unfortunately, some policies — especially those heavily advertised on television — are actually term life insurance policies. These expire after a set number of years, or the rates increase dramatically as you get older, often becoming unaffordable when you need the coverage most.

The fix: Understand if you are buying a whole life policy or a term policy. Before you sign anything, ask the agent three questions:

1. “Will my monthly premium ever increase?”
2. “Will my death benefit ever decrease?”
3. “Will my coverage ever expire?”

For a true burial policy, the answer to all three should be “No.”

Ready to find the right policy?

I hope this guide helped. Burial insurance is a wonderful product that provides peace of mind, and it can be affordable even if you’re older or have health concerns.

I’m an independent agent licensed in 14 states with access to over 20 top-rated carriers. My job is to do the shopping for you and find the best value for your situation. When you contact me, only I or one of my direct associates will call you. Your information will never be sold.

See what you qualify for  →

Or call 512-649-7977.

About the author

Matthew Gratt is a licensed life insurance agent in 14 states and the founder of ShopBurial Insurance, an independent agency. His National Producer Number is 21590619. He lives with his wife and a Pembroke Welsh corgi in Austin, Texas.