What Is Burial Insurance?
Burial insurance, also called final expense insurance, is a type of life insurance policy designed to cover end-of-life costs. These costs may include funeral services, burial or cremation, and related expenses.
Unlike traditional life insurance, which is intended to support dependents, burial insurance focuses only on covering funeral and burial costs.
Burial insurance is a type of whole life insurance. Costs vary based on factors like age and health. Coverage amounts are typically smaller than traditional policies, usually ranging from $5,000 to $25,000, which is generally enough to cover common funeral expenses.1
Why Do You Need Burial Insurance?
Funeral planning can be emotionally and financially overwhelming for loved ones. The average cost of a funeral with burial is close to $8,000, while the a funeral with cremation averages around $6,300.2
Many families are not prepared for these expenses, which can create added stress during a difficult time. Burial insurance for seniors helps cover funeral costs and reduce the financial burden on loved ones.
How Does Burial Insurance Work?
A burial policy for seniors works much like a simplified version of traditional life insurance. Here's a breakdown of the process:
- Choose Your Coverage: You select a death benefit amount based on estimated final expenses. Coverage usually ranges from $5,000 to $25,000.1
- Apply for a Policy: You complete an application with basic details such as age, health, and lifestyle. Depending on the policy type, health questions or a medical exam may not be required.
- Pay Your Premiums: After approval, you will pay premiums on a regular schedule, such as monthly, quarterly, or annually, to keep the policy active.
- Death Benefit is Paid Out: After your death, the beneficiary files a death with the life insurance company. The insurer then pays the benefit directly to the beneficiary.
- Funds Are Used for Final Expenses: The beneficiary can use the death benefit to cover funeral arrangements, cremation expenses, medical bills, outstanding debts, or any other expenses related to your passing.
What Does Burial Insurance Cover?
Burial insurance policies are designed to cover a wide range of funeral and end-of-life expenses. These may include:
- Funeral Home Services: Including embalming, visitation, and funeral ceremony costs.
- Cremation or Burial Costs: Depending on your preference, burial insurance can cover either cremation or burial services, along with associated costs like a burial plot or urn.
- Transportation Costs: Including transporting the body to the funeral home and, if needed, to the burial site.
- Miscellaneous Costs: Burial insurance can also cover additional costs, such as flowers, a memorial service, and other elements contributing to the funeral experience.
Explore different burial insurance options and find the perfect fit for you. Request a Free Life Insurance Quote
Pros: Benefits of Burial Insurance
Here are the key benefits of purchasing a burial insurance policy:
- Lower Coverage Amounts: Burial insurance typically comes with smaller coverage amounts than other life insurance options, which often results in lower monthly premiums for older adults.
- Simple Application Process: Most burial insurance policies do not require a medical exam. Applicants usually answer a few health questions, which can help those with health concerns qualify.
- Helps Cover Funeral Costs: Funeral expenses can add up quickly. Burial insurance can help reduce the financial burden placed on loved ones.
- Quick Payout: These policies often pay out faster than traditional life insurance, allowing funeral expenses to be handled without delays.
- Sense of Security: Having coverage in place can help loved ones focus on grieving rather than worrying about unexpected expenses.
Cons: Drawbacks of Burial Insurance
While burial insurance offers several benefits, there are also some drawbacks to consider:
- Higher Premiums for Lower Coverage: Compared to traditional life insurance, burial insurance often costs more per dollar of coverage and may exceed actual funeral expenses over time.
- Limited Use of Benefits: Burial insurance is intended for end-of-life expenses, so the payout does not provide broader support for beneficiaries.
- Waiting Periods: Some policies include a graded death benefit. If the policyholder passes away within the first two years, beneficiaries may receive only a refund of premiums paid or a reduced benefit instead of the full amount.
Types of Burial Insurance Policies
Different types of burial insurance policies are available to cater to different needs. Here are the main types.
Simplified Issue Burial Insurance
Simplified issue policies require applicants to answer a short questionnaire with basic health questions. There are no medical exams, and approval is often quick. This type of policy is ideal for people with minor health concerns who may be seeking coverage.
Guaranteed Issue Burial Insurance
Guaranteed issue policies are designed for individuals who may have serious health issues and cannot qualify for other types of insurance. Approval is nearly guaranteed, with no medical questions or medical exams required.
These policies tend to have higher premiums and a graded death benefit, meaning if the policyholder passes away within the first two years of coverage, the beneficiaries may receive only a portion of the death benefit or a return of the premiums paid.
Pre-Need Funeral Insurance
Pre-need insurance is arranged directly with a funeral home and is meant to cover specific costs related to funeral services. This type of policy is often used to lock in current funeral prices, but the cash is paid directly to the funeral provider rather than to the beneficiaries.
How Burial Insurance Differs from Life Insurance
Both burial insurance and life insurance provide financial protection after death, but they serve different purposes and come with different features.
| Feature | Burial Insurance | Life Insurance |
|---|---|---|
| Purpose | Covers end-of-life expenses only |
Provides financial support to beneficiaries |
| Coverage Amount | Smaller payouts, typically $5,000 to $25,0001 |
Can range from hundreds of thousands to millions |
| Medical Underwriting | Simplified underwriting with no medical exam |
Often requires detailed health assessments |
This difference in scope and requirements can make one option more suitable than the other, depending on your goals and needs.
How to Choose the Right Burial Insurance Plan
Choosing the right burial insurance plan depends on your personal circumstances, budget, and needs. Here are some important factors to consider:
- Coverage Amount: Assess your coverage needs by estimating funeral costs, including expenses for flowers, transportation, and memorial services.
- Premiums: Review your budget to see whether the premium payments fit comfortably over time. These premiums are typically fixed and do not increase.
- Company Reputation: Select a reputable life insurance company with a strong financial rating to help ensure it can pay out your policy when needed.
- Policy Features: Identify important features like adding riders or having a graded death benefit, and check for options such as accidental death coverage.
How Much Is Burial Insurance?
Several factors can affect the cost of senior's burial insurance premiums:
- Age: Age is one of the most significant factors determining burial insurance premiums. The older you are when you purchase a policy, the higher your premiums will be.
- Health: Most burial insurance policies don't require a medical exam, but your health can still affect your premiums. If you have underlying health conditions, you may be considered a higher risk, which can lead to higher premiums.
- Coverage Amount: The amount of coverage you choose will directly impact your premiums. Higher coverage amounts will result in higher monthly payments.
- Policy Type: The type of burial insurance policy you choose (simplified issue vs. guaranteed issue) can also affect your premiums.
- Gender: Gender can affect burial insurance premiums in some cases. Statistically, women tend to live longer than men, which may result in slightly lower premiums.3
Is Burial Insurance Worth It?
Whether burial insurance is "worth it" depends on your circumstances and priorities. Here's a breakdown to help you decide:
When Burial Insurance is Worth It
- Limited Financial Resources: If you don't have significant savings or other assets to cover your final expenses, burial insurance can prevent your loved ones from inheriting debt.
- Cost Coverage Certainty: Knowing funeral expenses are covered can reduce stress for you and your family.
- Health Concerns: If you have health issues that might make qualifying for traditional life insurance challenging, burial insurance (especially guaranteed issue policies) can be a good option.
- Simple Coverage: Burial insurance offers smaller benefit amounts than other types of life insurance and may include graded benefits or waiting periods.
When Burial Insurance Might Not Be the Best Choice
- Significant Existing Life Insurance: If you already have a substantial life insurance policy, it might be sufficient to cover your final expenses.
- Young and Healthy Individuals: Younger people in good health might find term life insurance a more cost-effective option for covering final expenses and other needs.
- Limited Coverage Needs: If your funeral expenses are likely to be minimal, you might be able to cover them through savings or other means.
Ultimately, the decision to purchase burial insurance is a personal one. Carefully weigh the pros and cons, consider your individual needs and financial situation, and compare burial insurance quotes from different providers to make the right choice for you.
Conclusion
Burial insurance is a thoughtful way to help protect your family during a difficult time financially. By planning ahead, you can help ensure that your loved ones are not faced with the financial burden of funeral expenses. If you're ready to take the next step, consider exploring burial insurance plans.
Speak with a life insurance agent about your burial insurance needs. Request a Free Life Insurance Quote
Sources
- Burial Insurance Cost: Is Prepaid Cremation Cheaper? https://www.after.com/articles/burial-insurance-cost.
- Statistics - NFDA. https://nfda.org/news/statistics.
- Why do women live longer than men? A study offers clues to close the gap. https://www.npr.org/2025/10/06/nx-s1-5558184/women-men-longevity-health-life-span.
