05 Sep Is Burial Insurance Worth It?

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Funeral insurance

If you’ve been looking into life insurance to ensure your family isn’t burdened by your passing, you may be wondering, Is burial insurance worth it?

Before we dive in, let’s look at the data.

The National Funeral Directors Association (NFDA) reports that funeral expenses in 2021 are an average of $7,360 or $8,755 if the cemetery requires a vault. The average cremation is $6,260.

The above expenses do NOT include the burial plot, flowers, transportation, viewing preparation, funeral home fees, or outside services.

Add those in, and you’re looking at funeral costs running you about $10,000 – $20,000.

Look, we know thinking about your death can be uncomfortable.

But, if you want to make sure your burial expenses are taken care of so your family doesn’t have to worry or spend a small fortune out of pocket when you pass, then it’s critical you understand your burial insurance options.

Keep reading to learn more.

What Is Burial Insurance?

In order to answer the question, Is burial insurance worth it, it’s important to understand what it is and how it works.

Burial insurance is typically a whole life insurance policy designed to cover the cost of your funeral or cremation expenses. It’s often referred to as final expense insurance.

When you pass, burial life insurance pays the death benefit to your beneficiary to cover the costs associated with your death, or in any way your beneficiary sees fit.

It is a type of life insurance policy, but the benefit is much smaller because it’s only meant to cover your final expenses.

Benefits of Burial Insurance

It’s never easy when someone we love dies. While burial insurance can’t help take the pain away, it can relieve some or all of the financial burden of paying for your funeral.

The death benefit is paid to your beneficiary to use the money anyway he or she sees fit. This means the money can go toward funeral expenses, as well as other expenses you leave behind such as legal costs or medical bills.

Ultimately, burial insurance ensures your family won’t be burdened by costs associated with your death.

The Difference between Burial and Funeral Insurance Policies

It’s important to note that burial and funeral insurance policies are NOT the same thing.

Funeral or burial insurance policies are alike in that they are typically whole life insurance designed to pay for your funeral or burial, unlike larger term life insurance policies.

Burial and funeral policies differ in the following ways:

Burial Insurance

  • Sold through licensed insurance agents or directly from companies
  • Small face amounts ranging from $5,000 – $25,000
  • Either Guaranteed Issue or Simplified Issue policies
  • Usually whole life insurance policies
  • Pays the beneficiaries directly


Funeral Insurance

  • Usually sold through employees or agents of a funeral home
  • Policies offered as a pre-need for burial expenses in the future
  • Most pay the funeral home directly upon death, not the beneficiaries
  • Some have fixed monthly payments for a designated amount of time
  • Usually Guaranteed Issue without a medical exam

Who Is Burial Insurance for?

Burial insurance is ideal for people with little to no savings, children who want to ensure their parents’ funeral expenses are covered. Or someone who wants a policy to specifically cover funeral expenses and not burden loved ones with out-of-pocket expenses.

What Is the Cost for Burial Insurance?

Burial insurance policies can vary in price – depending on the insurance company and the death benefit. Benefit payouts are low, ranging between $5,000 and $25,000.

As with other life insurance policies, your premium is based on your gender, age, and health when you start the policy.

Selecting Burial Insurance

If we’ve answered your question, Is burial insurance worth it? and you feel it’s something you want to look into, our recommendation is to determine how much burial insurance you need.

Then, you will need to get several quotes from different companies.

Since the policies may differ, examine them closely. Determining which life insurance is better for your specific needs is key.

Finally, compare the results to what you were trying to accomplish in the first place. Then, make your decision.

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