Best Funeral Insurance In Canada For 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 wants to think about their funeral, let alone plan for it. But we should because funeral expenses don’t come cheap.
Did you know that a burial with a funeral ceremony in Canada can easily range from $5,000 to $10,000? This leaves our loved ones with a huge financial burden. But funeral expense insurance assures you that they can lay you to rest according to your wishes.
Our guide below explores funeral insurance, what it covers, how it differs from life insurance, and if it may be right for you. You can also use our free comparator to explore the best options in the market, compare them, and get free personalized quotes right here.
Funeral Insurance Canada: 5 Key Takeaways
- Funeral insurance provides coverage for funeral expenses, acting as a type of life insurance.
- Good alternative for those who may not qualify for traditional life insurance
- A feasible option for seniors or those with pre-existing conditions.
- Coverage is versatile, available both within broader life insurance policies and as standalone options.
- Premium costs are influenced by age, smoking status, and policy type, generally increasing with age.
What is funeral insurance?
Funeral insurance is, as the name implies, insurance that covers your funeral expenses. It is a type of life insurance. It may also be referred to as final expense insurance and burial insurance. Funeral insurance plans will cover final expenses such as burial or cremation. Some plans may also cover medical bills associated with death.
Most Canadians are familiar with life insurance, but some circumstances can make it difficult to obtain an affordable life insurance policy or even qualify for life insurance at all. If you are a senior with certain pre-existing conditions, you may find yourself struggling to find an alternative to life insurance to help cover your funeral expenses. This is where funeral insurance steps in.
Funeral insurance or burial insurance is a viable option to make sure that your wishes are respected and that you do not saddle your family with end-of-life expenses. The good news is that most life insurance companies in Canada offer coverage for final expenses as part of comprehensive life insurance policies, while there are a few that offer standalone funeral insurance plans.
If you want to explore the best life insurance plans in Canada with substantial funeral expense coverage or even opt for standalone final expense insurance plans you can do it right here. Use our comparator below to compare plans and get free personalized quotes in seconds.
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What does funeral insurance cover?
A funeral insurance policy will cover the final expenses related to your funeral. Your policy should be large enough to cover the kind of funeral you want. To get as accurate an estimate as possible, we recommend that you start by pre-planning your funeral or memorial service. Consider the main factors that can influence the cost of these final arrangements. These could include:
- Funeral service
- Burial
- Cremation
- Urns
- Headstones
- Caskets
- Embalming
- Professional services fee
Funeral and burial expenses in Canada can easily reach $10,000. That number may even double depending on one's religious or cultural practices. Even cremation services can cost upwards of $5,000.
Pre-planning and purchasing final expense insurance coverage ensures that they will be able to lay you to rest according to your desires whether it be a large funeral ceremony with a burial or an intimate memorial and cremation.
How much does funeral insurance cost?
There is no one-size-fits-all for how much funeral insurance will cost. How much you will pay for funeral insurance depends on diverse factors including
- Age
- Policy type
- Coverage amount
- Smoker status
- Medical underwriting versus non-medical underwriting
Like other life insurance products, final expense policy costs increase as you grow older. Funeral insurance for seniors in Canada costs more than for younger buyers.
With medical underwriting, here are the costs for funeral insurance.
| 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 the costs for funeral insurance.
| 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 numbers above only indicate the cost of funeral insurance. 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.
Compare funeral expense coverage options
Do I need funeral insurance?
There is no simple answer to this question. Whether you need funeral 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.
What is the difference between life insurance and funeral insurance?
Many Canadians are already familiar with life insurance, but funeral insurance can be less familiar.
Here is a summary of the main differences between the two:
| Coverage | Funeral Insurance | Life Insurance |
|---|---|---|
| Coverage Limit | Up to $50,000 | Starts at $50,000 |
| Requires medical exam and/or history | ||
| Easy to purchase | ||
| Covers funeral and burial expenses | ||
| Covers medical bills |
Life insurance will pay a lump sum to your family upon your death. Your loved ones can then use the funds to cover funeral expenses, including your funeral and other related costs.
Many people have a life insurance policy in place to not only leave their loved ones with a source of income but also to cover their funeral expenses. If you are in good health, you can buy a life insurance policy with a medical exam. In some cases, this may make these policies more affordable than funeral insurance.
Funeral insurance typically only covers funeral expenses and final expenses such as medical bills and cremation fees. Funeral insurance has a lower face value compared to most life insurance options since it is intended to pay only for end-of-life expenses. These policies typically have a death benefit amount ranging between $5,000 and $50,000.
One of the biggest differences is that most life insurance policies require a medical test, while funeral insurance does not. You may not even have to provide any health-related information if you apply for guaranteed life-issue insurance.
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 happens if I do not have funeral insurance or life insurance?
If you do not have a funeral or life insurance policy, it can be a financial strain to cover all medical, funeral, and burial expenses. Generally, the cost becomes the responsibility of that person's estate. If neither the deceased nor their family have the financial resources (i.e. cash assets to cover funeral expenses), 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 to pay 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.
What is the best funeral expense insurance?
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. The best plans can vary based on individual preferences, coverage needs, and other factors.
However, 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 |
| Get a quote from Co-operators |
| Foresters Financial |
| Get a quote from Foresters Financial |
| Canada Protection Plan |
|
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| SunLife |
| Get a quote from SunLife |
| IA Financial Group |
| Get a quote from iA Financial Group |
| RBC |
| Get a quote from RBC |
| Canada Life |
| Get a quote from Canada Life |
| Empire Life |
| Get a quote from Empire Life |
| BMO |
| Get a quote from BMO |
