What is Burial Insurance and How Does it Work?

Burial Insurance

Death is the natural order and it is crucial to consider what will happen to your loved ones after you pass away. Funeral expenses are one thing to think about because they might be a big financial burden on your survivors. Burial insurance can help with that. 

But What Is Burial Insurance?

Matt Schmidt with Burial Insurance Pro tells us “Burial insurance is simply a type of whole life insurance policy called burial insurance, commonly referred to as funeral or final expense insurance, is created to pay for your funeral, burial, and other end-of-life costs. Typically, burial insurance policies are designed to cover final costs and offer a limited death benefit that can range from $5,000 to $50,000.”

The cost of your funeral can be lessened for your loved ones after you pass away if you acquire burial insurance straight from a funeral home or an insurance provider. To fully understand the coverage offered, it’s crucial to read the policy thoroughly and ask questions because certain policies could have unique limitations or exclusions.

Burial Insurance and its Types

Typically there are three types of burial insurances prevailing in the United States.

Pre-need insurance

Pre-need insurance is bought straight from a funeral home, and the plan covers the particular products and services you choose. These include selecting particular funeral services, death benefits to your beneficiary etc.

Simplified Issue

If you are looking for something that doesn’t have much of a hassle, perhaps a simplified issue is best. There are no complicated medical requirements such as an exam. On the other hand, the premium may be a bit higher than others. In other words, it is simple (hence the name) and has the added beneficiary benefit along with no waiting period.

Pre-Need Insurance

If you believe that your last wishes may not be honored, you can always go for pre-need insurance. You can select each detail of your burial service, including which funeral home to use.

How Does Burial Insurance Work?

Similar to other insurance policies, burial insurance operates on the same lines. Your beneficiaries receive a reward from the policy when you pass away in exchange for your monthly or yearly premium payment. The benefit’s size might vary from a few thousand dollars to tens of thousands of dollars depending on the insurance policy you select.

In the event you pass away, the beneficiary(ies) will receive the payout. Of course, just like any other insurance, beneficiaries must be specified. Your estate’s beneficiaries are free to utilize the funds however they see proper, including to pay for your funeral expenditures.

Policies are available to people from ages zero through age 85.  The older you are at time of applying, the more expensive your premiums will be.  It’s wise to lock in these plans at a younger age if possible.

Costs of Burial Insurance

Your age, health, and the level of coverage you require are a few variables that affect the price of burial insurance. In general, your rates will be greater the older you are when you buy burial insurance. However, this can be countered if your health is good.

The price of your funeral insurance will also depend on how much coverage you require. Your premiums will go up the more coverage you choose. However, it’s crucial to take into account the whole cost of your funeral expenses and pick a policy that will offer sufficient coverage to fulfil your requirements.

Burial insurance policies, according to one source, can start as low as $53 per month for coverage amounts between $5,000 and $35,000. According to another source, a $10,000 death benefit burial insurance coverage typically costs $50 to $100 each month. Remember that actual expenses might vary greatly depending on a person’s specific situation.

To get the finest burial insurance policy for your particular needs and price range, it is advised to compare quotations from several insurance companies, coverage options, and expenses.  There are lots of plans to choose from, so it’s wise to work with an agent to help you find the best burial insurance policy possible.

Why is Burial Insurance Important, is it worth it?

Funeral costs can be high, at times too high. Having a burial insurance helps lessen your burden on your loved ones when you pass away.  This life insurance policy is paid to your beneficiary in a tax free, and lump sum payment.

Depending on your specific situation, you may or may not choose to purchase burial insurance. You might not want burial insurance if you have sufficient cash on hand or other assets to pay for your funeral costs. 

But if you’re worried about the financial pressure your funeral would place on your loved ones, a burial insurance plan is what you need. 


Many may find the concept of paying for your last rites a bit strange, but burial insurance helps ensure that your loved ones are not saddled with the expensive cost of your funeral arrangements.

You can decide whether or not burial insurance is correct for you by being aware of the different types of coverage that are offered, how it operates, and the associated expenses.

In the end, it is all about leaving the world in a dignified manner and a way where you still protect your loved ones from an unfavorable financial situation, even after your passing.

To Top

Pin It on Pinterest

Share This