What Is Burial Insurance?

Burial insurance is insurance designed to cover any expenses that may be incurred by the insured individuals family or dependents, typically used to fund a burial or funeral. Burial insurance is also typically known as funeral insurance, and is meant to pay for those final expenses. While technically a type of life insurance, burial or funeral insurance plans do not pay as much as other term life insurance plans, usually in the $5,000 to $25,000 range. 

Burial insurance is usually marketed towards seniors, with the intent of helping their families pay for the funeral expenses which can be upwards of $10,000 dollars. But it's not only seniors that qualify for burial insurance.  Most people can qualify for burial insurance, even people with health problems or pre existing conditions because many burial insurance policies do not require a health screening. There are some cases that may be denied, but those are few and far between.

Most Burial or Funeral insurance plans are sold through insurance companies or funeral homes.  These plans and policies may be sold as custom plans allowing you to choose funeral options and details.  Choosing a plan offered by a funeral home can net you great benefits, such as pre-determined funeral cost rates, but funeral homes are not dedicated insurance agencies, so they may have more restrictions, and stricter refund policies. You will also likely not get to choose a different funeral home, or be able to transfer your policy. If you get a plan through an insurer you can dictate who receives the funds, and leave the funeral planning to the beneficiaries of the plan.

How Much Do You Pay For Burial Insurance?

As with most insurance policy, the amount you pay is dictated by your health and age. Most burial insurance plans have a higher cost, especially those plans that don’t have a fixed term, as they will be paying out the policy amount upon the death of the insured individual.  With policies that typically range in the $5,000 to $25,000 range (Although some insurers may offer policies up to $50,000) you can expect premiums in the $24 to $30 range (per month) for a person in their early to late 50s. The older you are when you start the plan the higher the monthly premium will be. At age 60 you might be looking at premiums of $40 to $60, and those over the age of 70 applying for burial insurance may see premiums as high as $90 a month.

Why Burial Insurance?

There are many definite advantages to funeral insurance when compared to other form of life insurance, term insurance or otherwise. A major benefit with most Burial insurance plans is the lack of a medical exam to qualify for the plan. Because you do not need to qualify with a medical exam, you can take out the policy regardless of current health (In most cases.  Some conditions do apply for most policies).

Burial insurance ensures that your loved ones will have the funds they need to give you the funeral you deserve without causing them financial hardship. Some examples of funeral expenses that will be covered include headstone, casket, grave liner, and funeral services.

What’s The Difference Between Burial and Life Insurance

Burial insurance is a type of whole life policy, although there are several important differences between these two forms of coverage. A burial insurance policy is designed to pay only final expenses. A full Life Insurance policy is usually designed to help your beneficiaries survive and maintain their lifestyles in the case of a sudden death. Usually the beneficiaries can use the funds of a life insurance policy for any purpose, where as burial insurance is meant to be used for funeral expenses.