Page Reviewed / Updated – June 5, 2022

The Best Burial Insurance Plans

Burial insurance plans are designed like life insurance policies but are used to pay for burial expenses and any additional final expenses when someone passes away. Colonial Penn’s permanent whole life burial insurance is designed for people who don’t need a high payout and may have a problem getting insurance from other companies due to their age or medical history. Funeral home expenses, burials or cremation can impose a financial burden on spouses or family members during a difficult time. Seniors who purchase burial insurance have peace of mind that their funeral expenses will be covered.

Although its monthly rates can be higher than most other life insurance companies, Colonial Penn doesn’t require a medical exam for its life insurance policies. Its availability for older adults who need burial insurance regardless of their health makes it one of the best burial insurance plans for seniors.

Pros and Cons of Colonial Penn’s Burial Insurance


  • Coverage acceptance is guaranteed
  • No medical exams required
  • A- financial rating with the S&P
  • The company has been in business for more than 50 years
  • 30-day guarantee or money is refunded


  • Policies cost more than most other insurance companies
  • The coverage minimum is $10,000
  • The coverage maximum is $50,000

Overview of Colonial Penn’s Burial Insurance

With the needs of the elderly in mind, Colonial Penn became the first insurance company to offer insurance plans for people aged 50 and older with its Guaranteed Acceptance Life Insurance plan. The company’s selection of whole life insurance policies includes two main burial plans. The most popular is its Guaranteed Acceptance Whole Life Burial Insurance. The second is its Permanent Whole Life Burial Insurance plan. 

Eligible Ages Approval Process Death Benefit Amount Waiting Period Policy Maturity
Permanent Whole Life Insurance 40-75 No Medical Exam — Some Health Questions Up to $50,000 None 121

How Much Does Colonial Penn’s Burial Insurance Cost?

Colonial Penn’s burial insurance premiums are fixed, and policyholders can pay monthly, quarterly, semiannually or yearly. When paying for an entire year of coverage at once, policyholders receive one month of coverage free. When an individual’s initial application is completed, policy premiums are calculated based on age and gender. (Montana residents’ premiums are calculated only on age.) 

Coverage is sold by the unit, which can be confusing at times. One unit of insurance costs $9.95, and the purchase limit is eight units. Looking at the cost by burial insurance policy value, the following examples represent the monthly payment in increments of $10,000. 

Policy Value

Monthly Payment

Monthly Payment

Male age 40

Female age 40
















Although Colonial Penn’s premiums are more expensive than other companies, seniors appreciate not being disqualified by a medical exam.

Eligibility, Plan Details & Other Information

Colonial Penn’s permanent whole life burial insurance is designed to help seniors who may not be able to pay for funeral expenses. Coverage continues throughout the policyholder’s life as long as regular payments are made, and their premiums never increase. As a whole life insurance policy, Colonial Penn’s burial insurance begins accruing a cash value after the first year of ownership. Policyholders can borrow against the cash value at a guaranteed rate.


Individuals can apply for Colonial Penn’s burial insurance at age 40, a much younger age requirement than most other burial insurance companies. The maximum age to apply is 75. Applicants aren’t required to undergo a medical exam. However, they have to answer some health-related questions. Colonial Penn’s burial insurance isn’t offered in New York or the Virgin Islands.

Plan Details

Colonial Penn’s burial insurance pays a death benefit directly to the policyholder’s beneficiary. If there are two beneficiaries, the benefit is divided by assigning a percentage to each person as long as the total amount equals 100%.

The minimum amount of coverage that can be purchased is $10,000, and the maximum is $50,000. Regardless of new health issues or aging, premiums never increase once a burial insurance plan is approved. As long as payments are up-to-date, the policy will never be canceled.

Policyholders have 30 days to decide if Colonial Penn’s burial insurance is suitable for their needs. If not satisfied, they can request a full refund before the 30 days are up.

Who Should Consider Colonial Penn’s Burial Insurance?

Seniors and People Age 40 to 75 With Health Conditions

Colonial Penn’s burial insurance offers many adults and seniors insurance they usually wouldn’t have access to. Without a medical exam, adults with health conditions can’t be turned down, providing a feasible way for many seniors to obtain burial insurance.

Older Adults and Seniors on a Budget

Although Colonial Penn’s burial insurance may cost more than similar product offerings from other insurance companies, most don’t accept applicants with a history of serious medical conditions. Older adults and seniors are forced to find a way to prepay for a burial plan while they’re alive, often cutting into their retirement budget. Colonial Penn provides the insurance seniors need at an affordable rate.

What Are People Saying About Colonial Penn’s Burial Insurance?

Most people don’t typically need high amounts of coverage when shopping for burial insurance. However, some customers weren’t happy with Colonial Penn’s $50,000 limit. Most reviews and comments expressed appreciation for the no-medical-exam policy and easy application process, and almost all reviewers described friendly and helpful customer service representatives. 

Unfortunately, quite a few reviewers complained they were having difficulty getting a beneficiary check after their loved one’s passing. Several had been waiting for months, with some beneficiaries waiting for more than a year. 

Frequently Asked Questions

What Does Burial Insurance Cover? 

Burial insurance can pay for funeral expenses, burial costs and the policyholder’s unpaid debts, or it can help loved ones financially. 

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What Type of Insurance Covers Burials? 

Burial insurance or life insurance are the types of policies to look for when seeking coverage for burial services. 

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How Do You Buy Burial Insurance? 

Individuals can buy burial insurance by selecting an insurance company they want coverage from and visiting their website. Typically, the individual requests an online quote and then either mails in a completed application form or fills out and submits the form online. 

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Do Burial Insurance Policies Have a Cash Value? 

Some burial insurance policies have a cash value, meaning the policy builds equity that the policyholder can borrow against, like a loan, over time. 

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How Does Burial Insurance Work? 

The insurance company pays out the agreed-upon amount to the policyholder’s chosen beneficiaries after they pass away. 

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