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Alex Arezina

Does $10,000 of life insurance cover the cost of a funeral or cremation?

Updated: Jun 2, 2021

Yes. While prices do vary, the cost of a typical traditional funeral service will cost between $8,000-$10,000. This range would include a casket, burial in a cemetery, and a headstone. The average cremation costs between $4,000 and $7,000 according to Lincoln Heritage, which is one of the biggest underwriters of final expense insurance in the United States.

There are three key cost components to a funeral and burial. First, there is the expense of the funeral home. Second, there is the expense of what is paid to the cemetery. Third, there is the cost of the headstone or grave marker.

Typically, the family spends about $6,000 at the funeral home, with the expenses broken down as follows:

  • casket -- $2,300

  • funeral director’s basic services fee -- $1,500

  • embalming and body preparation -- $600

  • funeral ceremony and viewing -- $1,000

  • miscellaneous (hearse, death certificates, obituary, etc.) -- $600

After a traditional funeral service, there is a body burial at the cemetery. The average cost for goods and services at the cemetery is approximately $2,000, which consists of the following:

  • grave plot -- $1,000

  • cost to dig the grave or the open/close fee -- $1,000

Finally, there is the cost of the headstone or grave marker which is $1,000-$2,000:

  • headstone -- $2,000

  • grave marker -- $1,000

It is important to note that the above numbers are just averages. Clearly, the average cost will be higher in larger cities. In addition, there are caskets and headstones that cost tens of thousands of dollars. Of course, with proper planning and making a few sacrifices, a family can reduce the average cost of a funeral and burial by up to $3,000-$5,000.

Because funeral costs are rising, more people are opting for cremation rather than burials to save money. Direct cremation costs between $2,000 and $5,000 depending on whether the family provides their own urn and cremation container.

The least expensive way to pay for a cremation is to arrange for a low-cost cremation called direct cremation. A direct cremation happens when the family only asks for a cremation and does not require a funeral or memorial service. Basically, the body is cremated immediately and the funeral home gives the ashes to the deceased’s loved ones. The typical cost of direct cremation is between $2,000 and $5,000, with the cost of a cremation with funeral costing up to $10,000.

Having established that a direct cremation costs up to $5,000 and an average funeral with burial costs around $10,000, Life Assurance Company of America offers a 1-year no medical exam term life insurance policy based on your health representations at limits of $5,000, $10,000, and $15,000. In order to qualify for coverage with Life Assurance Company of America, you have to be at least 18 and not older than 65 and generally healthy.

Life Assurance Company of America does not need any of the following:

  • physical exam

  • blood test

  • urine test

  • medical information bureau (“MIB”)

  • prescription or RX history or script

  • attending physician statement (“APS”)

  • motor vehicle record (“MVR”)

What information is needed? The application will take one minute and is all done on-line. We will need your first name, last name, email, phone number, date of birth, whether you are male or female, beneficiary information, and zip code (for Stripe, our payment processor), in addition to basic payment processing information. You will also need to review and accept our terms and conditions, which include your health representations. For more information about the company or our one-year no medical exam term life insurance product, visit our website at www.lifeassurancecoa.com.

Here is a link to our checkout page for the $10,000 policy which has an annual premium of $150:

If you are interested, all you have to do is click, provide the information, agree to the terms and conditions, and pay.

Finally, we want you to be informed and recommend that you visit the following links at Parting and Lincoln Heritage for valuable information regarding the cost of funerals and cremation:


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