Funeral Insurance Guide: Intro

Burial insurance (funeral insurance) is meant only as a guide to the quotes. This page will give you an understanding of funeral insurance (also known as burial insurance), and can inform you of savings opportunities, as well as provide a number of other useful tips.

Burial insurance is often used as a synonym for funeral services insurance, or final expenses insurance.  The burial expenses in Canada are higher than cremation expenses. The cost of a burial can vary between $3,000 and $15,000, with $7,500 being the average amount.  Canadians are making a decision in favor of cremation, with average costs of only $700, but could reach as high as $2,500.

Typically, permanent life insurance is the best way to take care of burial or funeral expenses without leaving your estate with unpaid bills or debts. These life insurance policies can be either term life insurance, permanent life insurance, or guaranteed life insurance.

How can you save on burial (life) insurance?

• Be healthy: If you are in a good health and have a good status when you apply for a life insurance policy, insurers will reward that with lower premiums.

• Family history: Having a healthy family history without any serious diseases also lowers your life insurance premiums as you are less likely to face a critical illness. Known serious issues in your family’s medical history may increase the premiums by 50% and up.

• Stay Happy: Mental health matters – those with a history of depressions can pay between 50% and up.

• Rounding mathematics matters: If you decide to buy a life insurance policy, make sure that your age rounds down and not up, i.e. if you are going to be 60 years old on December 31, buy the policy in the first 6 months of the year where your age is still rounded down to 59 and not 60.

• Drive safe: Ensure you have a good driving record before applying – a bad driving record can be punished by life insurance providers (as well as auto insurers) – your premiums will go up by extra 25% and up.

• Time goes by, driving offenses disappear (almost): If your driving record improved while you have a life insurance policy, you can review your premiums with your insurer and get them reduced (typical time for minor offenses is 3 years).

• Other tips: Contacting an experienced, licensed broker (not agent) will help you to find other ways to reduce insurance premiums of your life insurance premiums. Discussion with broker will not be an obligation to buy.