Life insurance, also called final expense insurance, is another type of permanent life insurance for end-of-life expenses such as medical, funeral or burial expenses.
We know that far from being an exciting topic to think about or talk about, but unfortunately it's not something we can avoid forever.
And since we never know when death will come, it is best to prepare to make sure the loved ones we leave behind do not care about economic issues while they are in mourning.
Find out more about funeral life insurance so that you can save your family from financial stress in the most difficult moments of life.
When we are in full health, death is the last thing we want to think about.
If we are at the top, with a thriving career or business and a beautiful family that we love, life is a bed of roses.
But the truth is, this is the moment when our loved ones can be devastated if something bad happens.
If you are the head of the family who caters to the needs of your parents, spouse or children, the loss of your income could wreak havoc on their future.
And while they are at a loss on what to do with their life and are trying to cope with the trauma of your loss, they also have to worry about your final expenses like funeral expenses or medical expenses.
In Quebec, a citizen who paid a family member's funeral expenses may be entitled to death benefits under the Quebec pension plan (maximum $ 2,500).
But will it be enough to cover the final costs?
Let's take a look at the average cost of funeral or burial expenses in Canada.
The average cost of funeral expenses in Canada: how much will your family need?
Preparing for the final arrangements in advance takes a lot of pressure off family members.
When preparing in advance, everyone will know what to do when moving on so that they can simply deal with their pain without worrying about the expense when they are most vulnerable.
This is where Funeral Life Insurance can help.
The cost of funeral expenses varies significantly, depending on what you prefer.
It also varies by province or city in Canada.
It can be up to $ 1,500 for post-death expenses or up to $ 22,000 for full service.
In Quebec, for example, the average cost of a funeral is around $ 9,000 while in Ontario it could be between $ 5,000 and $ 20,000.
See the table below for common expenses related to a funeral.
$ 100 and above
Death certificate and registration
about $ 80
about $ 2,000
Casket, shroud or urn
at least $ 3,000
from $ 150 to $ 550
$ 2,000 and above
Burial or niche
$ 2,000 and above (significantly more expensive in Toronto and other major cities)
Cremation and burial costs
at least $ 1,000
* These figures are conservative estimates and expenses can be much higher depending on certain variables.
However, as mentioned above, the final cost will depend on the choices made for the funeral arrangements.
More and more Canadians are opting for cremation rather than burial services as cremation costs much less.
Who pays for funeral expenses?
Family members who survive you or your insurance company will pay your funeral expenses.
If you don't expect someone to cough up your last bills, planning ahead is even more important.
The death benefits paid by the funeral insurance policy can cover post-death expenses and save the family more from the high funeral and burial costs.
Find out how the final expense insurance for the elderly can save your family from more anguish with a free and no-obligation quote!
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Life expectancy in Canada: plan your final expenses to protect your loved ones
We always say that life brings many surprises and we can never know when something bad will happen. However, studies can help us plan ahead of time so that the future of our loved ones is secure and that they no longer have to suffer from financial distress.
Below you will find a table on average life expectancy in Canada to guide you in planning funeral insurance.
Average life expectancy by age and gender in Canada
Average life expectancy
50 years old
50 years old
55 years old
55 years old
65 years old
65 years old
70 years old
70 years old
** Statistics Canada data changed in November 2019.
In 2019, the average life expectancy for males in Canada is 80 years and 84 years for females.
For complete information on this research, you can refer to the Life expectancy table at various ages.
Pros and cons of final expense insurance
The final expense insurance is designed to cover burial or funeral expenses, but technically the beneficiary can use the money the way he wants.
A contractor can designate a beneficiary whom he trusts to use insurance money to perform his funeral.
Some funeral homes may also agree on the award of an indemnity in the event of death of the funeral insurance.
In such cases, the insurance benefit will be paid directly to the funeral home.
When making your final arrangements, always check with the funeral company if they accept this type of payment method or if they need cash paid in advance.
Lower coverage but higher price.
Easier to get than traditional life insurance
Other types of life insurance can provide the same benefit
Medical examination not required
It makes it easier for survivors to rest a loved one
What are the benefits of final expense insurance?
The final expense insurance is convenient and easy to obtain.
This type of insurance is generally purchased by older people and has 1 specific purpose: to pay funeral or burial expenses.
Funeral insurance is very simple and easy to understand.
By getting this coverage, you make sure your loved ones don't worry about a big bill to pay after your death.
Does funeral insurance have disadvantages?
The amount of insurance is lower than other types of life insurance.
Life insurance can also pay funeral expenses, so a funeral insurance policy can be redundant for some people.
How much does funeral insurance cost?
Funeral insurance is not expensive because it is only intended to cover funeral or final expenses.
The amount of coverage is generally not high.
Below are some examples of prices for funeral insurance:
Male, 75 years old, non-smoking Simplified problem $ 10,000 benefit $ 95 per month
Female, 80 years old, non-smoking Simplified problem
Death Allowance of $ 8,000 $ 75 per month
Female, 82, guaranteed issue Benefit of $ 7,500 $ 220 per month
** Rates may vary by insurers and based on factors such as age, gender and smoking or non-smokers.
Many people use insurance for the funeral or the final expense to ensure the organization of their funeral to avoid leaving this burden on their families.
If you don't want your children or spouse to worry about your final expenses, this type of insurance can help you with financial planning.
Other important funeral insurance tips you should know
You will find 2 options for funeral insurance in Canada and your choice must be based on your health condition at the time of issue.
Simplified life insurance
This type of insurance does not require a medical examination for funeral insurance, but the individual will still fill out a medical questionnaire.
Life insurance with guaranteed emissions
This type of insurance does not require a medical exam or a funeral insurance questionnaire.
Anyone can get coverage but it is more expensive and offers fewer death benefits.
Usually, insurers request a 2-year waiting period, which means that the insured will not receive benefits if he dies within the 2-year period after issuing the policy.
Both simplified and guaranteed insurance policies are aimed at people who generally do not qualify for traditional life insurance for coverage.
The funeral or final expense insurance offers a lower face value than traditional insurance policies.
They generally pay $ 5,000 down to $ 50,000. A small sum can be obtained to cover funeral expenses.
Once you have established the amount of coverage you need, you can easily get a funeral insurance quote by filling out the form on this page.
In the event of death, the full amount will be paid to the beneficiary to help with the final costs such as funeral or burial.
Like a traditional life insurance policy, premiums must be updated to benefit from coverage.
Funeral insurance vs. life insurance: which is better for you?
You may be wondering if funeral insurance or traditional life insurance is the best for you.
Of course, not everyone will need the same type of coverage and you should evaluate the pros and cons based on your situation.
Life insurance provides death benefit, as well as funeral insurance.
So what's the main difference between the two?
Studies show that average funeral expenses in Canada are around $ 8,000.
The death benefits obtained by government programs are minimal, so you may need life insurance to help with the expenses or both life insurance and funeral insurance.
Traditional life insurance (life or permanent insurance) can also be used to pay for end of life expenses.
Death benefits are paid to the beneficiary who can be used to cover the funeral, taxes, debts, mortgage, etc.
Who Should Get Funeral Insurance?
If at the age of 60 you start wondering if insurance benefits will be enough for your loved ones, you may want to get funeral insurance to supplement it.
This will ensure that their inheritance will not be reduced by the final costs.
If your life insurance has expired and you have enough savings to transfer to your loved ones but you only want a small amount for the funeral expenses, then funeral insurance can be ideal for you and less expensive.
In the end, you need to determine how much insurance you need to provide to your heirs.
Remember, funeral insurance offers only a limited amount and will not be enough to pay for educational expenses, a mortgage and other bills.
If you believe you need a higher amount at the time of applying, it may be more practical to take out a traditional life insurance policy.
There are several types of life insurance: duration, full, universal and some variations of these 3.
Life insurance expires after a certain period, so it may expire.
Of course, you can renew a term life insurance policy, but it becomes more expensive with each renewal and you may not qualify once you are past a certain age.
Whole or universal life insurance offers lifetime coverage, but they are very, very expensive and not ideal when you are at least 50 years old due to the high cost of premiums.
On the other hand, insurance for funeral or final expenses will provide coverage until death and will not lapse as long as you actively make payments.
You can also refer to this article on how life insurance can pay funeral costs to help you distinguish between these two insurance products.
Talk to a qualified insurance broker from our network to find the best solution for you.
Fill out the form and request a FREE and NO OBLIGATION quote to compare and choose the right coverage for your needs.
Frequently asked questions about funeral insurance
Are you considering funeral insurance to plan your final expenses?
We have collected some frequently asked questions about funeral insurance that can guide you in choosing the right coverage for your needs.
What is the difference between pre-need insurance and funeral?
Pre-need insurance is generally linked to a specific service provider, while funeral insurance can pay benefits in the event of death to a designated beneficiary who will execute or pay the final provisions.
A pre-necessity policy will specify the elements included in a contract while a funeral insurance policy specifies the insured amount that the beneficiary can use for free as desired.
Who needs funeral insurance?
Funeral insurance can provide financial security to your loved ones that you will leave behind.
By having funeral insurance coverage, you can be sure not to leave a financial burden on the people who will survive you.
Since death is inevitable, everyone must plan for end-of-life expenses.
If you don't have sufficient life insurance coverage, you may need to get funeral insurance for the final expenses.
If you also want to make early arrangements for your funeral, you can use funeral insurance to get everything right.
What is the amount of funeral insurance needed in Canada?
The insured amount will be determined by the cost of the funeral service you have in mind. It is best to know the average cost of a funeral in your area.
A smaller service will cost less than more sophisticated ones.
Do pre-planning and research funeral services in your city to guide you.
You can get funeral insurance with coverage from $ 5,000 to $ 10,000 or more, but the amount isn't as big as a traditional life insurance policy.
Is funeral insurance only for funeral expenses?
When an insured person dies, the beneficiary receives the cash benefit which can be used in any way desired.
Of course, the main goal of a funeral insurance policy is for burial costs, but the people you leave behind should know how the money should be used, according to your plan.
Therefore, it is important to designate a beneficiary you trust or make the proceeds payable to the funeral home you choose.
How can I save on funeral insurance costs?
You can save on funeral insurance by comparing products between various insurers or through insurance brokers.
Rewards can be reduced by requiring a lower amount if you opt for simpler services.
You can also benefit from lower premiums by purchasing coverage as soon as you retire or even earlier.
Where should I buy funeral insurance?
You can buy funeral insurance from insurance brokers to be able to compare prices and get the best deal.
Insurance brokers are not loyal to a certain insurer (unlike bonded agents who only sell the product of 1 company).
By comparing your options, you can find the right price for your coverage.
Insurance brokers won't charge you any fees, so you don't have to worry about paying additional fees.
Can funeral insurance be canceled?
Funeral insurance is designed to cover you to the death, regardless of age.
If you stop paying the premiums, the policy will be automatically terminated by the insurer.
Keep in mind that when the policy is canceled, the beneficiary will not receive benefits in the event of death.
Compare and choose the right funeral insurance today
Just like shopping for most consumer products, it is important to compare and choose the right coverage for your needs.
The price, the sum insured and the application methods are important for you to know so that you can make the best choice.
Choosing the best plan for your needs is very personal and important factors must be considered:
The amount of coverage
The average cost of a funeral in your area
Fill out the form below and you will receive a FREE quote WITHOUT COMMITMENT from one of our insurance partners.
By getting the right coverage, you can plan your final expenses and avoid leaving a burden on your family.