Life Insurance and the Cost of Cremation

Most people
choose cremation

Although a cremation costs significantly less than a burial in Canada, the cost of cremation can still vary widely depending on the complexity of the cremation ceremony you select, the province you live in, and the funeral home you select.  According to an article on, a direct cremation has an average cost of $700, but with an obit, service, viewing, and flowers, the average cost can jump to $2,500.

According to the Cremation Association of North America, cremation rates continue to rise steadily in Canada, from 5.89% in 1970 to 68.4% in 2009. An article from Sun Media asserts that half of those buried in 2010 chose cremation.  The rise in the popularity of cremation over the years can be attributed to one thing – affordability.

At LSM Insurance, we know that many Canadians are looking at alternatives to the traditional funeral as a means of reducing their final expenses.  We also know that life insurance can be a very effective strategy for covering the wide range of costs associated with cremation across the country.

Life insurance benefits are paid out tax-free and, in most instances, the coverage can be obtained for a very affordable monthly premium. Life insurance plans are generally broken down into the following three categories:

  1. Traditional Life Insurance, where the insured has to complete a medical exam and answer a list of health questions.
  2. Simplified Issue Life Insurance, where there are no medical tests and the insured has to complete anywhere from three to 12 health questions.
  3. Guaranteed Issue Life Insurance, where there are no medical tests whatsoever and the insured does not have to complete any medical questions either.

One caveat with guaranteed issue coverage and some simplified issue policies is that the death benefit can be limited in the first two years—except if death is accidental—to a return-of-premium plus interest.

For more information on No Medical Life Insurance in Canada, please contact us at 1-866-899-4849 or visit our Non-medical Life Insurance Quote Page.

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