Texas Burial Insurance: 12 Necessary 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 Lone Star State, life is a little bigger. From San Antonio to Amarillo and El Paso to Houston, this state represents all that is great about this country!

The item that is not always at the top of Texans’ minds is the cost associated with the end of life. Often families of the deceased are left to pay these inevitable bills.

This is where funeral insurance for seniors has helped many Texans.

12 Necessary Questions About Texas Burial Insurance

Getting burial insurance in Texas is the same process as in most other states. Things are also slightly different in Texas in their funeral laws, which we will get to later in this article.

1. What is Texas Funeral Insurance?

Funeral insurance in Texas is a type of whole life coverage. These plans are intended to cover funeral costs and are also known as burial and final expense life insurance. You will hear these three names used to market the product, but there is no difference between them.

Since this coverage is a type of whole life insurance, it has three permanent benefits.

Coverage Lock: The coverage will never change, which is critical when planning your funeral expenses. The death benefit is guaranteed to the listed beneficiary as long as all premiums have been paid.

Price Lock: The monthly price is guaranteed to remain the same. Other products on the market, like AARP final expense insurance, will increase in price the older you get. The price lock feature is essential for seniors on a fixed income.

Builds Cash Value: With each monthly payment, a portion will go towards the cash value account. Over time this value will grow, allowing the policyholder to borrow from it if they choose.

2. How is Burial Insurance Different from a Traditional Whole Life Insurance Plan?

Two specific features make all Texas burial insurance products unique.

No Medical Exam: The underwriting process is “simplified issue,” making the application much more straightforward and allowing your policy to be active within a matter of days rather than weeks. Applicants will never be asked to get a medical exam.

Affordable: Smaller death benefits equal smaller monthly payments. With traditional whole life insurance, the policy amount is much higher than final expense coverage. This means lower face amounts will give you a much more affordable monthly premium with the same great benefits as bigger insurance plans.

3. What can the Beneficiary Use the Payout for?

Life insurance is state-regulated, but there are no rules or regulations on what the funeral insurance payout can cover. The typical items that a beneficiary uses the money on are the funeral service, cremation or burial, and outstanding bills.

4. How Much are Texas Burial Insurance Premiums?

Each insurance company sets its own prices so that quotes will vary based on the carrier. Prices are also determined by the underwriting standards set for each burial policy.

$10000 whole life insurance quotes are listed below to give you a general idea of the cost for final expense coverage based on age.

Texas Monthly Premium Range

$10,000 Death Benefit
Non-Smoking Quotes
Age Female Male
45
$23 - $37
$27 - $54
50
$24 - $39
$31 - $56
55
$28 - $47
$36 - $61
60
$33 - $54
$44 - $68
65
$41 - $66
$56 - $91
70
$53 - $80
$73 - $106
75
$72 - $116
$100 - $150
80
$98 - $190
$140 - $206
85
$136 - $221
$193 - $316

5. How is the Price Calculated for Texans?

Four factors will determine the funeral insurance quotes for seniors in Texas.

Health: Your health will dictate what burial insurance plan type you can qualify for. The healthier you are, the cheaper the premiums will be.

Age: The older you are, the more at risk you become for health issues. With Texas whole life insurance, your price will never change. However, the longer you wait to lock in coverage, the higher the price.

Coverage Amount: The more coverage you take out, the higher the monthly premium.

Gender: Males will pay more for life insurance than females. There are a couple of reasons for this, but the biggest is that women, on average live four years longer than men.

Ultimately the Texas Department of Insurance regulates and oversees the prices Texans will pay.

 6. How do I Buy Burial Insurance in Texas?

When purchasing a policy, there are two main ways to go about it.

Directly with the Company: This may seem like the best route to take, but since each company sets its own underwriting and pricing, this could be problematic. Texans could either be denied or end up overpaying for coverage.

Insurance Agencies: An agency can represent as many Texas final expense insurance plans as they choose. This means the agent can find you the best burial policy at the lowest price for your specific health.

Choosing to work with an insurance agency is a smart move because you will have more options and peace of mind knowing you are getting a plan that is optimized for you.

7. How do I Qualify for a Final Expense Policy in Texas?

The most reliable option would be to speak with a well-respected and highly rated insurance agency. An agency with access to several life insurance policies will assist in finding the most suitable burial insurance plan at the lowest price. There are many licensed agents in the Lone Star State who can assist you in obtaining burial insurance in Texas.

8. How Old Can Someone be and Still Receive Coverage in Texas?

Most insurance providers in Texas will accept applications until the age of 80 or 85. However, a few select providers will award initial coverage until 90 years old.

Remember, the protection never expires once a policy is secured.

9. What is a Waiting Period, and Can I Avoid It?

A waiting period is when the carrier will only partially cover the policyholder. The waiting period typically ends two years after the initial coverage date.

How it Works: If the insured dies within the waiting period, the beneficiary will receive a predetermined portion of the coverage amount. However, the beneficiary will receive the full final expense insurance death benefit if the insured passes away after the waiting period.

Your best opportunity to qualify for funeral insurance with no waiting period is by working with an insurance agency with access to multiple plans. This allows them to compare policies on your behalf based on your unique medical history.

10. Can You Purchase Burial Policies for Parents Who Live in Texas?

You can purchase burial insurance for relatives. However, there are a few rules to follow. Your loved one will need to be involved in the application process. This means they will have to be able to sign their name and answer the medical questions.

Without their consent, you cannot take out a burial policy for parents or other loved ones.

11. What is a Texas Prepaid Funeral?

A prepaid funeral is a financial plan offered by the funeral home that allows you to prepare your funeral arrangements. These contracts are governed by the Texas Financial Code (chapter 154) and have specific permit requirements. Make sure to fully understand the legalities before agreeing to a prepaid funeral contract.

12. How do I Get a Quote for Texas Final Expense Insurance?

The simplest way to receive a price estimate is by using the quote tool on this page. Once you enter your basic information, it will show a list of companies with prices.

What Is The Best Final Expense Insurance For Texans?

Every insurance carrier has different underwriting standards. This means that the best company for you could be completely different from the top option for your spouse or another family member. Finding the best burial companies takes additional knowledge and understanding of what each provider will approve and deny regarding pre-existing conditions.

Finding the Best Company and Plan

Your health will always be the most significant factor in finding the best funeral insurance companies. Once you have found the right company that is a good fit for your medical history, three other factors should take priority.

Low-Cost: Finding the lowest possible price is easier now than ever. Just use the instant quote tool on this page to compare rates between different insurance providers in Texas.

Immediate Coverage: Protecting your family as soon as possible is important and will help secure the lowest rate.

High Financial Rating: Always use companies with high financial ratings and reviews. Using AM Best companies with B+ ratings or better when buying Texas burial insurance is essential. This helps with peace of mind knowing the company will honor its financial commitments and pay your claim when due.

Texas Funeral Statistics & Facts

Average funeral costs in Texas can range over a wide variety of price points and depends on several factors. Pricing for funeral services varies by city and the funeral home used. A typical burial in Houston or Midland is more expensive than elsewhere in Texas. The chart below shows average prices for cremation and burial for locations throughout the great state of Texas.

The average burial service in Texas is $7,861

The average cremation service in TX is $6,363

Location Burial Cremation
Abilene
$7,555
$6,018
Amarillo
$7,353
$6,004
Austin
$8,152
$6,638
Corpus Christi
$8,252
$6,659
Dallas
$8,121
$6,557
El Paso
$7,088
$5,767
Houston
$8,443
$6,821
Lubbock
$7,635
$6,156
Midland
$8,578
$6,953
San Antonio
$7,430
$6,052
State Average
$7,861
$6,363

Not included in the price estimates:

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

Texas Cremation Statistics

According to the National Funeral Directors Association, in 2020, Texans decided to be cremated just over 50 percent of the time. 2030 projections are expecting this number to increase to 68.4 percent.

Texas law prohibits cremation from taking place less than 48 hours after death unless waived by a Medical Examiner or Justice of the Peace. Cremated remains can be kept or disposed of in one of the following ways.

  • Scattered on private property of a consenting landowner
  • Interred in a cemetery
  • Placed in a columbarium
  • Kept by the family in their home
  • Scattered on uninhabited public lands or waterways

Texan’s Lifespan

The average age at death in Texas is 78.6.

The national average lifespan is 78.8.

Causes of Death in Texas

Listed below are the top 10 leading causes of death in Texas, per the CDC.

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

Final Thoughts On Burial Insurance Texas

a. Texas funeral insurance is an affordable and valuable option to plan for end-of-life costs. Knowing your funeral costs are covered, you and your family will have peace of mind.

b. The best burial insurance plan for you may not be the best plan for someone else. Every medical condition will bring a different underwriting process when applying for coverage.

c. Work with a Texas-licensed insurance agency with access to the top final expense insurance policies.