Best Funeral Insurance In Canada 2024
- Best offer for funeral costs, estate settlement, debts
- Built-in savings and the ability to earn dividends
- No medical exam is required
- Three extra coverages included
- Lifetime death benefit protection
- Guaranteed cash value
- No need for a medical exam
- Affordable rates
- Renewable terms upon term completion
- No medical questions asked
- Automatically accepted even with pre-existing health conditions
- Provide a small legacy for children or grandchildren
- One of the largest groups of insurance companies in Canada
- Get up to $10,000 of coverage and fixed premiums all along
No one likes to think about planning their funeral, but it’s an essential step in protecting your family from financial stress during an already emotional time. In Canada, funeral costs can range from $5,000 to $10,000 or more, leaving loved ones with a significant expense to cover.
That’s where funeral insurance, or funeral expense insurance, comes in. It provides peace of mind, ensuring your family can honour your wishes without worrying about the costs. Whether it’s a simple ceremony or a more elaborate service, funeral insurance helps take care of these expenses.
In this guide, we’ll cover everything you need to know about funeral insurance: what it is, how it works, how it differs from traditional life insurance, and what it costs. Use our free comparison tool to explore top plans, compare options, and get customized quotes—all in one place.
Funeral Insurance Canada: 7 Key Points
- Provides coverage for funeral expenses, acting as a type of life insurance.
- Good alternative for those who may not qualify for traditional life insurance.
- Many funeral insurance policies typically don't require a medical exam.
- Final expense insurance is a feasible option for seniors.
- Those with pre-existing conditions may also qualify.
- Available within life insurance policies and as standalone options.
- It is also called final expense insurance, funeral expense insurance, or burial insurance.
What is funeral insurance?
Funeral insurance, also known as final expense insurance, is a type of life insurance designed to cover the costs associated with your funeral, burial, cremation or other end-of-life expenses. It ensures that your loved ones don’t face financial stress while arranging your final farewell. Some plans may also cover medical bills associated with death.
Funeral insurance is particularly suited for older adults, retirees, or those who may not qualify for traditional life insurance due to health issues and pre-existing conditions.
Funeral expenses insurance is not typically recommended for families with significant financial responsibilities, as it doesn't provide sufficient coverage for debts or income replacement. Instead, funeral insurance focuses on one thing: making sure your final expenses are covered.
Most life insurance companies in Canada offer coverage for final expenses as part of life insurance policies, while there are a few that offer standalone funeral insurance plans. Use our comparator below to compare the best funeral expense insurance plans and life insurance plans with final expense coverage and get free personalized quotes in seconds.
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What does funeral insurance in Canada cover?
A funeral expense insurance policy will cover the final expenses related to your funeral including:
- Funeral Services: Costs for ceremonies, memorial services, or gatherings.
- Burial or Cremation: Fees for burial plots, caskets, urns, or cremation services.
- Headstones and Markers: Expenses for gravestones or memorial markers.
- Transportation: Costs for transporting the deceased to the funeral home or burial site.
- Professional Services: Fees for funeral directors, embalming, and other necessary services.
How much does funeral insurance cost in Canada?
Your funeral insurance cost depends on the following factors:
- Age
- Policy type
- Coverage amount
- Smoker status
- Medical underwriting versus non-medical underwriting
Like other life insurance products, funeral insurance costs increase as you grow older. Funeral insurance for seniors in Canada costs more than for younger buyers.
With medical underwriting, here are funeral insurance costs per month for different ages.
| Age | Non-Smoker Male | Non-Smoker Female | Smoker Male | Smoker Female |
|---|---|---|---|---|
| 40 | $24 | $19 | $42 | $36 |
| 45 | $35 | $26 | $59 | $42 |
| 50 | $46 | $37 | $70 | $55 |
| 55 | $55 | $46 | $87 | $62 |
| 60 | $64 | $50 | $102 | $69 |
| 65 | $86 | $65 | $132 | $92 |
With non-medical underwriting, here are typical funeral expenses insurance costs.
| Age | Non-Smoker Male | Non-Smoker Female | Smoker Male | Smoker Female |
|---|---|---|---|---|
| 40 | $26 | $22 | $42 | $37 |
| 45 | $34 | $31 | $56 | $45 |
| 50 | $47 | $42 | $65 | $56 |
| 55 | $57 | $51 | $89 | $68 |
| 60 | $78 | $68 | $117 | $88 |
| 65 | $105 | $86 | $155 | $110 |
The funeral insurance cost per month mentioned above is only an estimate. You can request a personalized quote using our comparator below. Get the best deals on funeral expense coverage from the best providers in Canada right here.
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Do I need funeral insurance in Canada?
Whether you need final expense insurance will heavily depend on a few things:
- Your health
- Your financial situation
- Whether or not you have or qualify for traditional life insurance
Planning for your funeral in advance is a good idea. It will save your loved ones stress and money when the time comes. Buying a final expense insurance policy is one way to do that. It is a considerate gift to your loved ones. It will take away the potential financial strain while they grieve.
If you are older or on a tight budget, burial insurance may be the best option for you. These policies have smaller payouts so their premiums are often lower compared to most life insurance products. If you are a senior in Canada with a chronic health condition who wants insurance for funeral costs, burial insurance may be the only option you qualify for.
If you are fortunate enough to have sizable savings, you could set aside money for your funeral, before the need arises. You should still discuss your final wishes with them.
If you are young and healthy, you could consider buying a term or permanent life insurance policy instead. Your family can use part of the proceeds to cover funeral expenses.
Good to know
The average cost of a funeral in Canada typically ranges from $5,000 to $10,000, depending on the services chosen. Cremations are generally more affordable, averaging around $5,000, while traditional burials with ceremonies may exceed $10,000. Pre-planning and having insurance, like funeral insurance or a life insurance policy, can help manage these expenses and ease the financial burden on your loved ones.
Funeral Insurance vs Life Insurance
Here is a summary of the main differences between life and final expenses insurance:
| Coverage | Funeral Insurance/ Funeral Expense Insurance | Life Insurance |
|---|---|---|
| Coverage Limit | Up to $50,000 | Up to $5,000,000 |
| Requires medical exam and/or history | ||
| Easy to purchase | ||
| Covers funeral and burial expenses | ||
| Covers medical bills |
Funeral Insurance
- Purpose: Designed specifically to cover funeral and end-of-life expenses, such as burial, cremation, and services.
- Coverage Amount: Offers smaller coverage amounts, usually between $5,000 and $25,000.
- Beneficiaries: Ensures the funds are used for final expenses, but beneficiaries still receive the money as a tax-free payment.
- Policy Types: Typically a simplified issue or guaranteed issue policy, requiring no medical exam.
- Premiums: Generally easier to qualify for but may have higher premiums relative to the smaller coverage amount.
Life Insurance
- Purpose: Provides financial protection for your loved ones after your death, covering a wide range of expenses like debts, education, and living costs.
- Coverage Amount: Typically offers higher coverage amounts, ranging from $50,000 to several million dollars.
- Beneficiaries: Pays a tax-free lump sum to your beneficiaries, who can use the money however they wish.
- Policy Types: Includes term, whole, and universal life insurance, with flexible terms and options.
- Premiums: May require medical exams and have higher premiums depending on the coverage amount and your health.
Good to know
Life insurance is broader and covers a variety of financial needs, while funeral insurance is a specialized product aimed solely at final expenses. Choose based on your financial goals and family’s needs.
Does life insurance cover funeral costs?
Life insurance can absolutely cover funeral costs, along with other financial needs your family may face after your passing. Life insurance policies often have death benefits that far exceed the cost of a funeral, providing flexibility and financial relief for your loved ones.
Most life insurance providers offer coverage up to $5,000,000 or more, while the average funeral in Canada costs about $10,000. This leaves a significant tax-free payout that can be used for:
- Paying off a mortgage
- Covering day-to-day living expenses
- Starting an education fund
- Taking time off work to grieve
- Building a nest egg for retirement
With life insurance, your family can focus on healing instead of worrying about financial stress during such a difficult time.
You can explore all these options right here. Compare the best life insurance plans with funeral coverage using our free comparator and get tailor-made quotes based on your unique needs in seconds.
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What is the best final expense insurance?
Here are the top life insurance providers in Canada that have comprehensive funeral coverage among other services. We recommend that you get individual quotes using our comparator/click on the get a quote button. You can get results for free, right here.
| Company | Key Features | Get a quote |
|---|---|---|
| Co-operators |
| |
| Foresters Financial |
| |
| Canada Protection Plan |
| |
| SunLife |
| |
| IA Financial Group |
| |
| RBC |
| |
| Canada Life |
| |
| Empire Life |
| |
| BMO |
|
Good to know
Many reputable insurers provide some form of funeral or burial insurance either as a standalone product or as a part of another life insurance product. Typically, most top providers offer funeral benefits as part of life insurance policies.
Can Canadian seniors get funeral insurance?
Yes, Canadian seniors can get funeral insurance, and these policies are often tailored to meet their unique needs. Funeral insurance for seniors in Canada is typically designed to offer smaller coverage amounts, usually ranging from $5,000 to $25,000, specifically aimed at covering end-of-life expenses such as funerals, burials, and cremations.
One of the key benefits for seniors is that many funeral insurance policies require no medical exams, making them accessible even for those with pre-existing health conditions. These policies are ideal for seniors who may not qualify for traditional life insurance but still want the peace of mind that their final expenses will be covered.
Good to know
For example, a 65-year-old non-smoker senior may pay $86 per month for $10,000 of coverage with medical underwriting. Without medical underwriting, the premium for funeral insurance for seniors in Canada may increase to $105 per month. While the premiums are slightly higher than other life insurance options, the simplified application process and guaranteed acceptance for many plans make them an attractive choice.
For seniors living on a fixed income, funeral insurance offers an affordable and practical solution to ensure their loved ones aren’t left with the financial burden of covering their final expenses. These policies provide reassurance, allowing seniors to pre-plan their arrangements and leave a lasting gift of financial security to their families.
What happens if I do not have funeral expense insurance or life insurance?
If you do not have a funeral or life insurance policy, covering all medical, funeral, and burial expenses can be a financial strain. Generally, the cost becomes the responsibility of that person's estate. Suppose neither the deceased nor their family have the financial resources (i.e. cash assets to cover funeral expenses). In that case, some provinces will provide a small amount of monetary support to cover basic expenses.
For example, Quebec will cover up to $2,500 for funeral expenses. Provinces including British Columbia and New Brunswick will examine the deceased and their family’s financial situation before offering benefits for funeral or burial expenses. In any case, funeral insurance coverage makes the process quicker and more pleasant for your survivors.
Watch out!
We recommend always having some form of insurance in place to make sure that your loved ones need not worry about how to cover your funeral and burial expenses.
FAQs on Funeral Insurance Canada
Funeral insurance, also known as final expense or burial insurance, is a type of life insurance designed to cover end-of-life expenses, ensuring that funeral and burial costs don't become a financial burden for your loved ones.
Individuals, especially seniors or those without substantial savings, who want to ensure their funeral expenses are covered without imposing financial strain on their families, should consider funeral insurance.
Coverage amounts for funeral insurance usually range from $5,000 to $50,000, depending on the insurer and the policyholder's needs.
While traditional life insurance provides a larger death benefit to cover various financial needs, funeral insurance offers a smaller payout specifically intended to cover funeral and burial expenses.
Many funeral insurance policies in Canada do not require medical exams, making them accessible to individuals with health concerns. However, some may include health-related questions during the application process.
