Alabama Burial Insurance: 6 Important Questions

Jake Irving

Jake Irving is the Founder of Policy and has contributed to articles for Synchrony Financial, GoBankingRates, Yahoo News, UpCity, Zapier, LegalZoom, and more.

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In the Yellowhammer State, there is a lot to be proud of. From the beautiful scenery in the Gulf State Park to the wonderful college towns of Tuscaloosa and Auburn and then Muscle Shoals and all the history that comes with it. Alabamans are blessed with a beautiful state.

One item that may not be the most thought about is what happens financially after someone’s death. This is where senior funeral insurance can help.

6 Important Questions About Alabama Funeral Insurance

1. How does Alabama Burial Insurance Work?

Burial insurance is a type of whole life insurance. There are three distinct policy benefits that are incorporated in all whole life insurance policies.

Coverage Lock: This means the coverage amount will never decrease, and the plan will never expire. You are covered for life if you pay your monthly premiums.

Price Lock: The price will never increase. This is critical when discussing a plan that will be in effect for many years.

Builds Cash Value: A portion will go into the policy’s cash value for every payment you make. Over time you will have a cash value that you can borrow against if needed.

2. What Makes Alabama Final Expense Insurance Different From Other Types of Whole Life Insurance?

A plan for your funeral costs is different from traditional whole life policies in one significant way. The larger whole life policies are designed to replace an individual’s income, while burial insurance is meant to pay for burial costs.

This means the monthly payment is much more affordable than other permanent life insurance plans. However, the same great benefits will be available.

3. How Much Does Alabama Final Expense Insurance Cost?

The price is determined by four primary factors, age, health, gender, and the coverage amount, which will play a role in your monthly premium amount. An average premium in Alabama is $50 – $90 per month for a $10,000 death benefit.

If you were to get a larger coverage amount, for example, a $25,000 whole life policy, your monthly premium would be higher.

4. What Does Alabama Final Expense Insurance Cover?

No rules or regulations dictate what the payout has to be used for. However, there is a typical list of items that beneficiaries spend the money on following the insured’s passing.

  • Funeral
  • Cremation
  • Memorial/Celebration of Life
  • Remaining Balance on a mortgage
  • Credit Cards
  • Medical Bills
  • Post Mortem Expenses
  • Legal Expenses
  • Leaving an Inheritance
  • Charity Donations
  • Other Final Expenses

5. Can I Purchase for Someone Else?

You can purchase burial insurance for parents and other loved ones, but some guidelines must be followed. The person receiving coverage needs to be a willing participant, sign their name and be in the right mental state to understand what they agree to.

Insurable interest is a crucial factor in having a valid contract as well.

6. How Do I Receive a Quote?

The simplest way to get a quote is by using our online quote tool on this page. If you plug your information in, the quote machine will show the price you can expect to pay from life insurance companies that operate in Alabama.

How Much Does a Funeral Cost In Alabama

Burial costs can differ depending on where you live in Alabama. Additionally, the selections made throughout the process can change the final cost of the funeral service.

On average, a traditional burial service in Alabama is $7,724, and a cremation service in AL is $6,172.

Location Burial Cremation
Auburn
$7,115
$5,740
Birmingham
$8,114
$6,502
Dothan
$8,555
$6,924
Enterprise
$7,408
$5,968
Florence
$7,049
$5,475
Foley
$7,665
$6,260
Huntsville
$7,697
$6,399
Mobile
$7,918
$6,174
Montgomery
$7,812
$6,084
Tuscaloosa
$7,911
$6,191
State Average
$7,724
$6,172

Not included in the price estimates:

  • Cost of Headstone, Monument, or Marker
  • Cemetery Property, Plot of Land, Columbarium, etc.

Lifespan and Cause of Death in Alabama

Alabama’s average age of death is 75.2, while the national average is 78.8.

According to the CDC, the leading causes of death in the state are:

  1. Heart Disease
  2. Cancer
  3. Covid-19
  4. Chronic Lower Respiratory Disease
  5. Stroke
  6. Alzheimer’s Disease
  7. Accidents
  8. Diabetes
  9. Influenza/Pneumonia
  10. Kidney Disease

Final Thoughts About Alabama Burial Insurance

a. Alabama funeral insurance is very affordable and offers seniors a cheap alternative to cover their final expenses.

b. Final expense insurance has a simple application process, and coverage can go into effect within days.

c. There are no regulations that say what the payout must be used for, giving the policy beneficiary great flexibility.