How to Compare Final Expense Insurance Companies

Why this page does not rank burial insurance companies

Each insurance company asks its own health questions and sets its own prices. A company that offers one person full coverage from day one may offer another person only a waiting period. So the company that fits your neighbor may not be the one that fits you.

Many burial insurance company ranking lists are written by sites that earn a commission or affiliate fee when you buy. Many rank companies using one sample buyer, such as a healthy 70-year-old. If your age or health is different, the ranking may not apply to you.

Instead of a ranking, this page gives you a checklist and shows you how to check any company yourself, using free public tools. A Licensed Insurance Agent can then help you compare real offers for your age, health, and state. See how we make money.

How "top burial insurance companies" lists are built, and how to read them

Most ranking lists give each insurer a score in several areas, weight those scores, and add them up. Each site picks its own areas and its own weights. That is why two lists can rank the same companies in a different order.

• Check how the site is paid. Look for a disclosure near the top or bottom of the page.
• Check the sample buyer. If prices were based on someone your age and health, the list may be more useful to you. If not, it may not apply.
• Check the date. Ratings, prices, and products change.
• Then verify the facts yourself with the free tools on this page.

The 12-point checklist for any final expense policy

Print this table and keep it handy for any call with a Licensed Insurance Agent. Ask them to answer each row for the exact policy they are offering.

Financial strength ratings: what the letters mean

Independent rating agencies grade how able an insurance company is to meet its obligations, such as paying claims. AM Best focuses on insurers and publishes a Financial Strength Rating for each company it rates. S&P Global, Moody's, and Fitch also rate many insurers, each with its own scale.

• A rating is the agency's opinion. It is not a guarantee.
• Ratings change. Check the current rating, not the one in an old ad or mailer.
• Make sure the rating is for the exact company that issues the policy. Large insurance groups often own several companies with different ratings.
• Ask the Licensed Insurance Agent to show you the current rating of the issuing company in writing.

How to check a company's complaint record with the NAIC

The National Association of Insurance Commissioners (NAIC) runs a free tool called the Consumer Insurance Search. It pulls together complaint data that state insurance departments report. You can look up a company by name, state, and type of insurance, for the past three years.

1. Go to the NAIC Consumer Insurance Search (link in sources below).
2. Search for the exact name of the company on your policy offer.
3. Open the complaint report and choose life insurance.
4. Look at the number of closed complaints and the main reasons, such as claim delays or denials.
5. Look at the company's complaint index if shown. It compares a company's complaints with its size in the market, so large and small companies can be compared.
6. Do the same for two or three other companies. The NAIC suggests comparing complaints, financial information, and premiums written across several companies instead of relying on one number.

Your state insurance department can also confirm that a company and the Licensed Insurance Agent you speak with are licensed where you live. Many state departments let you file a complaint or ask for help if something goes wrong.

Waiting periods: a key check for your family

One important difference between two burial insurance offers is often what is paid if death happens in the first two years.

Many graded and guaranteed issue policies still pay the full benefit for an accidental death from the start. Rules vary, so read the "limited benefit" or "graded benefit" section of the policy.

If you can honestly answer the health questions, ask about a level policy first. Guaranteed issue is usually considered only if level or graded coverage is not available to you. See no waiting period coverage and buying with pre-existing conditions.

Age limits, coverage limits, and your state

Many final expense insurance companies set a maximum age for new applicants. They also set a smallest and largest coverage amount. Both can differ by state and by policy type.

• If you are in your 80s, your choices may be fewer, so check the age limit before you spend time on an application. See over 80, over 85, and over 90.
• For people 50 and up generally, see burial insurance for seniors.
• Not every policy is sold in every state. An offer seen in a TV ad may not be available where you live.

Red flags when comparing burial insurance companies

• The premium "may change." Look for words like "guaranteed" or "level" next to the premium.
• The benefit drops at a certain age. Some policies pay less after a set birthday.
• Coverage ends at a certain age. That is term insurance, and it may end before you do.
• "Government" or "program" language. There is no government final expense program. See the truth about the final expense program and free burial insurance.
• Pressure to decide today, or a request for banking details before you have seen the policy.
• A person or company you cannot find in your state insurance department's license lookup.

Every state has a life and health insurance guaranty association. It is designed to protect policyholders, up to limits set by state law, if a licensed insurer fails. This is a backstop, not a reason to skip checking a company's strength.

Questions to ask a Licensed Insurance Agent before you choose

1. What is the exact name of the company that issues this policy, and what is its current AM Best rating?
2. Is this a level, graded, or guaranteed issue policy? What is paid if I die from illness in year one or year two?
3. Is the premium guaranteed never to go up? Is the benefit guaranteed never to go down?
4. Does the coverage ever end, at any age?
5. How many days is the grace period? How many days is my free look period in this state?
6. What does my beneficiary need to file a claim?
7. Which other companies did you compare for my age and health?

A Licensed Insurance Agent who works with several companies can help you compare offers. You can request more information or take the policy quiz first. Before you decide, make sure final expense insurance is right for you: read is burial insurance worth it? and see what it costs.