What the VA Pays Funeral Services

First and Foremost

First and foremost, we want to thank everyone for your service and sacrifice if you served or are currently serving our wonderful country!

Question.

Is burial insurance for veterans covered 100% by the Veterans Administration?

We feel that after putting their lives on the line for our great country, funeral and burial insurance for veterans and all related costs should be covered 100% by the Veterans Administration.

We did some research to find out what burial benefits our United States veterans receive after serving our country.

Sadly, veteran beneficiaries only receive a small burial benefit from the Veteran’s Administration.

We wanted to clear up the confusion about what the Veteran Administration pays for burial and funeral expenses.

Therefore, we created this article.

Benefits Paid

Service-related Death

According to the Veteran’s Administration website, they will reimburse up to $2,000 toward burial expenses for a service-related death.

Non-service related Death

If your death is non-service related and you are hospitalized by the Veterans Administration at the time of death, the Administration will reimburse up to $796 toward your burial and funeral expenses.

If you are not hospitalized by the Veteran’s Administration at the time of death, the Administration will reimburse $300 towards burial and funeral expenses.

Other than that, the Veteran’s Administration will cover your plot, government headstone, and a burial flag IF you are buried in a VA cemetery.

Your family is responsible for every other cost – basic funeral home service fees, transportation, embalming, and the actual service itself. The cost of a basic funeral is $7000 – $10,000.

Transportation of the body

If you are buried in a Veteran’s Administration national cemetery the Administration may reimburse some or all of the cost of transporting your body to the cemetery.

Steps for reimbursement

First, your family will need to submit an application for eligibility.

Second, they will need to submit proof of payment.

If the VA approves the application they will send a reimbursement check to your family.

Please remember that any money paid to you by the VA will be reimbursed only after a claim has been submitted and approved. Receipts must be submitted as proof of payment.

Are Veteran’s Administration Burial Benefits the same as Life Insurance?

No. Veteran’s Administration benefits are not the same as life insurance.

Unfortunately, when you pass away, the Veteran’s Administration does not send a death benefit check to your family.

Survivors need to pay all burial and funeral expenses first. Next, they can apply for reimbursement.

How to apply for reimbursement:

• submit a paper application (VA Form 21P-530)
• or apply online

Keep in mind that the Veteran’s Administration only reimburses up to a certain amount which is explained above.

Why Veterans Should Own Burial Insurance

With the average cost of a funeral being $7,000 – $10,000, and the Veteran’s Administration reimbursing only $300 – $796, your family would be left with a huge deficit if you didn’t have burial insurance benefits in place at the time of your passing.

A loved one’s passing is usually the most difficult time that a family will ever experience.

The last thing that a grieving family needs to think about is how to pay for burial or cremation services.

Having final expense burial insurance can give you and your loved one’s peace of mind.
They will receive a check from the insurance company to pay for your burial, final expenses, and debts.

At the time of your passing, your beneficiary/s will receive a check, usually within 48 hours of notification to pay for your funeral and burial expenses.

What Does Burial Insurance For Veterans Cost?

Final expense burial insurance for veterans is more affordable than you think. Even on a fixed income.

Final expense burial insurance costs will vary depending on your age, your health, and the amount of coverage that you purchase.

The amount of death benefit coverage you may buy through our carriers is between $1,500 and $45,000.

The most popular coverage amounts that are purchased by our clients are $5,000 – $10,000 for cremation and $10,000 – $15,000 for burial.

We may recommend an amount that you should have based on the state that you live in and your final expense needs as cremation and burial costs may vary depending on your state.

To give you an example of what burial insurance costs are, please see the two tables below.

Example Burial Insurance Rates:

Leaving a Legacy or Gift

Many of our clients like the idea of leaving money behind as a gift or a legacy to their children, grandchildren, and loved ones.

Purchasing between $20,000 – $45,000 allows there to be enough money left over to go to their beneficiary(s) after paying for cremation or burial expenses.

This money can be used to purchase a home, pay for college, buy a car, pay off debt, etc.

The best part is that money received from life insurance benefits is tax-free.

Can I buy burial insurance if I have VA benefits?

Yes.

You can buy final expense life insurance if you have VA benefits.

In fact, purchasing final expense burial insurance will give you the most protection.

Combining final expense burial insurance along with your VA benefits is a good way to make sure all of your final expenses will be covered. This will take all or most of the financial burden off of your loved ones.

What is the best burial insurance for veterans?

The following are five of the best final expense life insurance companies for veterans.

One company is not better than the other. Therefore, they’re not listed in any specific order.

It is important to know that each company underwrites health impairments differently.

As a result, our underwriting will match you with the best company for your situation.

Rates are based on your health condition and age.

1. Mutual of Omaha

Founded in 1909

Simplified Underwriting has two choices:

Level Benefit Plan 

• Benefit Amounts: $2,000-$40,000 (WA $5,000 – $40,000)
• Policy Issue Ages: 45-85
• Accelerated Death Benefit: Terminal Illness or Nursing Home Confinement

The level benefit is the top tier that offers the best rate. Seniors who are in good health or have mild health issues may qualify for the level benefit. 

If you qualify for the level benefit you receive immediate coverage with no two-year waiting period.

Graded Benefit Plan

• A.M. Best Rating: A+ Superior
• Benefit Amounts: $2,000-$20,000 (WA $5,000 – $40,000)
• Policy Issue Ages: 45-80

If you don’t qualify for the level benefit and have moderate health issues you may be able to qualify for the graded benefit.

With the graded plan, there is a two-year waiting period to receive 100% of the death benefit. 

Mutual of Omaha has some of the lowest rates around when it comes to burial insurance. 

2. American Amicable

• Founded in: 1910
• A.M. Best Rating:  A (excellent
• Benefit Amounts: $2,000 – $35,000
• Policy Issue Ages: 50-85
• No Two-year Waiting Period: if approved for Immediate coverage
• Terminal Illness Rider: Included at no extra charge
• Confined Care Rider: Included at no extra charge

The Terminal Illness Accelerated Benefit Rider allows you to access up to 100% of the death benefit.

For example, you can access the death benefit if you get diagnosed with a terminal illness. This means your life expectancy is 24 months or less (12 months in some states).

The Confined Care Accelerated Benefits Rider allows you to receive a monthly benefit equal to 5% of the face amount per month if you are confined to a nursing home at least 30 days after the policy is issued.

They have some of the best rates in the nation when it comes to mental health issues like bipolar disorder, schizophrenia, and depression.

Since American Amicable has some of the most competitive tobacco rates, they may be a great choice if you are a smoker.

Furthermore, if you’re a pipe or cigar user you can get a non-tobacco rating.

Even though American Amicable is an excellent option if you smoke cigars, we also offer other great final expense insurance companies for cigar smokers.

Check out our article on the best burial & final expense insurance for cigar smokers.

3. Royal Neighbors of America

• Founded in: 1895
• A.M. Best Rating: A excellent
• Benefit Amounts: $7,000 – $30,000
• Policy Issue Ages: 50-75
• No Two-year Waiting Period: if approved for Immediate coverage

Royal Neighbors of America is one of the largest women-led life insurers in the nation. They are a not-for-profit member organization with $1.1 Billion in assets.

Becoming a member of Royal Neighbors of America gives you special perks such as discounted services on prescription drugs, legal services, and online shopping.

4. AIG

• Founded in: 1919
• A.M. Best Rating:  A excellent
• Benefit Amounts: $5,000 – $25,000
• Policy Issue Ages: 50-80
• Two-year Waiting Period: Yes (Guaranteed Acceptance)

With this guaranteed issue option, there are no health questions asked. Therefore, you can get guaranteed coverage with a two-year waiting period.

This means that AIG will refund 110% of the premiums paid into the policy if death occurs within the two-year waiting period from a non-accidental death.

AIG’s final expense policy is a great option for those whose health requires a guaranteed issue plan.

5. Liberty Bankers Life

• Founded: Over 60 years ago 
• A.M. Best Rating: A excellent
• Benefit Amounts: $3,000-$30,000
• Policy Issue Ages: 18-80
• No Two-year Waiting Period: if approved for Immediate coverage
• Terminal Illness Rider: Included at no extra charge
• Chronic Illness Rider: Included at no extra charge

At no additional cost, Liberty Bankers final expense burial insurance plans offer living benefits that allow you to access the death benefit if you develop a Terminal or Chronic Illness.

Additionally, Liberty Bankers will offer immediate coverage up to $30,000 with no waiting period for serious health issues such as diabetes, COPD, Parkinson’s, Chronic hepatitis, Systemic Lupus, liver or kidney disease, and more.

How To Get The Best Rate

In order to get the best rates on burial insurance, you need to work with an independent insurance broker with access to many final expense insurance companies. Certainly, this will save you hundreds of dollars.

An independent broker that is familiar with each burial insurance company’s underwriting guidelines is ideal.

Going with a captive insurance agency such as State Farm or Farmers won’t give you access to the best rates in the market.

With so many burial insurance plans in the market, you need help navigating and choosing the best option that fits your particular health situation.

Don’t fall for the low prices advertised on TV and in the mail.

For instance, these companies offer policies with no health questions and a two-year waiting period.

Additionally, they offer are accidental policies that don’t cover natural causes of death.

We offer a free service called a Policy Review. We review your current policy to make sure you’re not overpaying.

Also, we make sure you are in the correct underwriting tier.

There are three tiers:

1. Level or Immediate – no waiting period (best option)
2. Graded or Modified – 2 or 3-year waiting period (next best option)
3. Guaranteed Issue – no health questions asked (when no other options are available) 

We are here to advocate for you and help make sure you receive the best option available.

In other words, we don’t work for the insurance companies – we work for you!

Work with us and receive expert quality service.

Call us today! 1-888-232-2343