$9.95 Funeral Insurance: What’s Covered and What Isn’t
Ken Connolly
Licensed Life and
Health Insurance Broker
Updated 1/17/2025
$9.95 Life Insurance: What’s Covered and What Isn’t
Intro | Should I Take Medicare Now?
|How To Signup For Medicare | Medicare Secondary Options |
I'm Turning 65 But My Spouse Is Not |
Medicare Disability | Medicaid
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Do $9.95 life insurance policies really cover funeral costs?
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Why "guaranteed acceptance" for life insurance may lead to a 2-year waiting period.
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Why answering health questions may be in your best interest when applying for life insurance.
If you've seen TV ads for life insurance for $9.95 a month with guaranteed acceptance, you might wonder if it's too good to be true. As insurance professionals, we work with families daily. We've seen these ads confuse many about the cost of life insurance and the process of enrolling for it.
In our Toms River office, we receive calls from older adults who have seen these commercials and hope to get coverage for their final expenses. Many are surprised, and often frustrated, to learn that the $9.95 rate won't provide enough coverage for their needs. Let's uncover what these $9.95 policies actually offer – and more importantly, what they don't.
Most people interested in these low-cost life insurance policies want to cover their funeral costs. In 2025, funeral costs typically range from $6,000 to $15,000, depending on the type of funeral and location. But here's what many commercials don't clearly explain about these $9.95 policies.
The advertised $9.95 rate purchases what insurance companies call one "Unit" of coverage. Here's what that means in practice:
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For individuals in their early 50s, one unit usually offers coverage of about $1,500.
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For older applicants: The same $9.95 unit might only provide $500 to $700 in coverage.
Just last week, I spoke with a client who was shocked to learn that her $9.95 policy would only provide $700 in coverage. As she pointed out, that wouldn't even cover the basics of a funeral service. This is a conversation we find ourselves having all the time.
Part 1: The True Cost of Funeral Coverage
Real-World Funeral Cost Examples
To get enough coverage for an average funeral ($6,000-$15,000), you're most likely looking at:
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Ages 50-55: $40 to $100 monthly.
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Ages 75-85: $100 to $200 monthly.
People think they are buying an affordable life insurance policy. But they are often upsold 4-20 times what they expected to pay!
Part 2: The Truth About Guaranteed Acceptance Life Insurance
Many of these policies also advertise guaranteed acceptance with no health questions. While this is technically true, a crucial detail is often hidden in the fine print: the two-year waiting period.
The reality of the two-year waiting period hits especially hard when families are planning for someone with known health issues. We've seen families, sure they had everything handled, discover the policy's limits at the worst moment.
What Is the Two-Year Waiting Period For Life Insurance?
If you pass away within the first two years of a life insurance policy with a two-year waiting period:
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Your beneficiaries will not receive the full coverage amount.
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They will most likely only get back the premiums you have paid into the policy.
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This could mean a payment of a few hundred dollars instead of thousands.
For example, imagine you have a $10,000 policy and a 2-year waiting period. If you pass away 12 months after acceptance, your loved ones will get only the premiums paid into the policy. This isn't true of every life insurance policy, but it is often true of the ones that have a two-year waiting period.
When Should You Consider Guaranteed Acceptance Life Insurance Policies?
Guaranteed acceptance policies may be appropriate in some cases. They work for those with certain health conditions, such as:
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Diabetes combined with high blood pressure and obesity.
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History of cancer or heart disease.
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Pulmonary conditions like COPD and emphysema.
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Other serious health conditions.
But we should usually consider these policies a last resort. If you can pass basic health questions, traditional underwritten policies usually provide:
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Lower monthly costs.
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Immediate coverage without waiting periods or lower ones.
What is Realistic for Funeral for Insurance?
For families seeking funeral cost coverage, underwritten policies are best when possible. These policies:
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Take your health into account.
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Can provide immediate payout upon approval.
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Typically cost between $50-$150 monthly for adequate coverage.
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Offer better value for those who can qualify.
After working with hundreds of New Jersey families, we know that being upfront about the realities of these life insurance policies saves everyone stress and disappointment in the long run. While the $9.95 commercials are attention-grabbing, they often lead to unrealistic expectations about life insurance costs.
Summary:
Before purchasing a $9.95 life insurance policy, remember:
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The advertised rate likely won't provide enough coverage for funeral expenses.
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Guaranteed acceptance policies can have significant waiting periods.
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Traditional underwritten policies can often offer better value if you can qualify.
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Applying for life insurance earlier typically means lower premiums.
As local insurance professionals who have helped families in our community for years, we always encourage people to look beyond the TV commercials and consider their actual needs. Every family's situation is unique, and there is rarely a one-size-fits-all solution when it comes to life insurance.
Get Professional Life Insurance Guidance
Life insurance decisions shouldn't be made based on TV commercials alone. At NJ Life and Health, our licensed insurance brokers can help you understand all your options and find coverage that truly meets your needs. We're here to answer your questions in plain English and guide you through the process.
Contact Us for a Free Consultation
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Phone: 848-226-6897
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Website: www.njlifeandhealth.com
Don't wait to secure your family's future. The longer you wait, the harder it will be to get life insurance. Contact us today to discuss your life insurance options.
"Ken does a great job at explaining all of the Medicare options and walks you through the entire process."