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What Is The Best Burial Insurance?

Burial Insurance


Life is uncertain, and while we celebrate its joys and milestones, it’s equally important to prepare for its inevitable end. No one likes to think about death, but a bit of planning can go a long way in alleviating the emotional and financial burdens that come with it. One such prudent plan is getting burial insurance. With numerous options available, choosing the best one for you can be overwhelming. That’s where this exhaustive guide comes in.

In this blog post, we will delve deep into what burial insurance is, why it’s important, how to choose the right policy, and much more. Here at PolicyHub we aim to provide you with a comprehensive understanding of burial insurance so you can make an informed decision.

What Is Burial Insurance?

Also known as funeral or final expense insurance, burial insurance is a type of insurance policy designed to cover the costs associated with your funeral and burial services. It provides a financial safety net for your family or beneficiaries, helping them manage expenses during a difficult time.


Burial insurance is a specialized insurance product that provides a lump-sum death benefit to the beneficiaries. This lump-sum is generally intended to cover funeral expenses, including casket, burial, and other final expenses.

How It Differs from Life Insurance

While both burial insurance and life insurance provide financial benefits after the death of the insured, they serve different purposes and have distinct features.

  • Benefit Amount: Burial insurance usually provides a lower benefit, typically ranging from $5,000 to $25,000. Life insurance policies, on the other hand, often offer higher benefit amounts.
  • Underwriting: Burial insurance often has less stringent underwriting criteria, making it accessible to older individuals or those with health conditions.
  • Purpose: The benefit from burial insurance is intended specifically for covering funeral and final expenses. Life insurance benefits can be used for any purpose, such as income replacement, debt repayment, or estate planning.

Types of Burial Insurance

  • Pre-need Funeral Insurance: This type of insurance is directly linked to a funeral service provider and covers specific goods and services.
  • Final Expense Insurance: A more flexible option that provides a death benefit to beneficiaries who can use the funds as they see fit.
  • Simplified Issue Life Insurance: A type of life insurance that can be used for burial costs, but requires some medical questions to be answered during the application process.

Why Is Burial Insurance Important?

You may wonder why there’s a need for specialized insurance just for burial costs. The importance of burial insurance can be distilled into three primary reasons.

Financial Stability for Family

The sudden loss of a family member can be financially straining. The average cost of a funeral can range between $7,000 and $12,000, according to the National Funeral Directors Association. Burial insurance ensures that your family doesn’t have to scramble for funds during an emotionally fraught time.

Eases Emotional Burden

Funeral planning involves making numerous decisions—from choosing a casket to arranging a memorial service. Knowing that the financial aspect is taken care of can alleviate some emotional stress for your loved ones.

Ensures Wishes Are Carried Out

Having burial insurance provides you the opportunity to outline your final wishes, ensuring they are respected and carried out, whether you prefer a traditional burial or cremation.

Who Should Consider Burial Insurance?

While burial insurance can be valuable for many people, it’s particularly relevant for specific groups. Here are some considerations that may help you decide if it’s right for you.

Age Considerations

Burial insurance is often targeted at older adults, usually those above 50. However, that doesn’t mean younger people can’t or shouldn’t consider it. The premiums are generally lower the younger you are when you start the policy.

Health Status

If you have health issues that make a traditional life insurance policy prohibitively expensive or unattainable, burial insurance can be an easier-to-obtain alternative.

Financial Situation

Burial insurance is also a useful option for those with limited savings or assets. It ensures that your loved ones aren’t left with a financial burden during a difficult time.

Factors to Consider When Choosing Burial Insurance

Picking the right burial insurance policy involves more than just selecting the cheapest option. Here are factors to consider:

Policy Type

As mentioned earlier, there are different types of burial insurance. Choose the one that best fits your needs and preferences.

Coverage Amount

Think about how much money your family would need to cover your funeral and any other final expenses. Make sure the policy you choose offers adequate coverage.

Premium Rates

Premiums can vary greatly based on your age, health status, and the coverage amount you choose. Shop around to get the best rates.

Policy Riders

Some policies offer additional features or “riders,” such as an accidental death benefit. Consider these when comparing options.

Policy Exclusions

Make sure you understand what is not covered by your burial insurance. Most policies have a waiting period during which death benefits are reduced or not payable for non-accidental deaths.

Company Reputation

Check customer reviews and ratings from agencies like A.M. Best or Standard & Poor’s to ensure that the insurance company is reputable and financially stable.

How to Compare Different Burial Insurance Options

Once you know what to look for, the next step is comparing different options. Here are some ways to do that:

Traditional Comparisons

  • Price: Gather quotes from multiple providers for similar coverage levels.
  • Coverage: Ensure that the coverage amounts meet your needs.
  • Riders: Assess any additional features or benefits.

Modern Tools

Use online comparison websites or mobile apps to streamline the process. AI-based recommendation engines can also offer personalized suggestions based on your specific needs.

Hidden Factors

  • Policy fine print: Always read the fine print to understand terms and conditions.
  • Waiting periods: Be aware of any waiting periods during which full benefits are not payable.
  • Graded benefits: Some policies offer reduced benefits for the first few years.
  • Free look period: Take advantage of this feature to evaluate the policy.

Top Burial Insurance Providers

A multitude of insurance companies offer burial insurance policies, each with its own set of features and benefits. Here are some top contenders in the market, along with their pros and cons:

Company 1

  • Pros: Competitive rates, customizable coverage, high customer satisfaction
  • Cons: Limited riders, not available in all states
  • Summary: Company 1 offers a good balance of price and coverage but has some geographic limitations.

Company 2

  • Pros: No medical exam required, quick approval, various riders available
  • Cons: Higher premiums, lower maximum coverage
  • Summary: Company 2 is ideal for those looking for quick approval without a medical exam but comes at a higher price.

Company 3

  • Pros: Wide range of coverage options, strong financial ratings
  • Cons: Longer approval process, medical examination required for some plans
  • Summary: Company 3 is a solid choice for those willing to undergo a more thorough approval process in exchange for a wide range of options.

Special Mention: Emerging Providers

Some new players in the market are offering innovative solutions, like tech-based applications and AI-driven underwriting. Keep an eye on these as they can offer more customization and potentially lower rates.

Common Pitfalls and How to Avoid Them

Buying burial insurance can be straightforward, but there are pitfalls to be aware of. Here’s what you need to know to avoid common mistakes.

Overbuying Insurance

While it’s crucial to have enough coverage, paying for more than you need can strain your budget. Be realistic about the costs and opt for a policy that adequately meets those needs.

Misunderstanding Policy Terms

Always read the fine print. Make sure you understand the policy’s terms and conditions, including exclusions and waiting periods, to prevent unpleasant surprises later.

Ignoring Inflation

The cost of funeral services is likely to rise over time. Consider a policy that accounts for inflation or allows for an increase in the death benefit over time.

Real-Life Case Studies

These real-life scenarios illustrate the importance of selecting the right burial insurance policy.

Case Study 1: Choosing the Right Policy Type

Jane, a 67-year-old retiree, initially considered final expense insurance but ultimately chose a pre-need funeral insurance policy directly linked with her preferred funeral home. This ensured that her exact wishes would be carried out without burdening her family.

Case Study 2: Navigating Pre-existing Conditions

Mark, 55, had some health issues that made traditional life insurance costly. He opted for a burial insurance policy with a graded death benefit, which offered a reduced payout if he passed away within the first few years of the policy.

Case Study 3: Impact of Waiting Too Long

Sarah, 75, thought she didn’t need burial insurance until it was almost too late. She ended up paying significantly higher premiums due to her age. Waiting too long to purchase a policy can be financially disadvantageous.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions about burial insurance to help you gain a deeper understanding of this financial product.

What happens if I outlive my term burial insurance policy?

If you outlive a term burial insurance policy, the coverage ends and you would need to renew or seek another policy. However, most burial insurance policies are “whole life” and don’t expire as long as premiums are paid.

Can I buy burial insurance for my parents?

Yes, you can buy burial insurance for your parents, but you will need their consent. The insured will have to answer some health-related questions, even for guaranteed issue policies.

Is the death benefit taxable?

Generally, the death benefit from a burial insurance policy is tax-free for beneficiaries. However, there may be some exceptions, so it’s advisable to consult with a tax professional.

How soon after buying the policy does coverage start?

Immediate coverage is usually available, but some policies have a waiting period during which the full death benefit is not payable for non-accidental deaths.

Resources for Further Research

To help you make an informed decision, here are some reputable sources for additional information:

  • Insurance Information Institute: Provides a wealth of information on different types of life and burial insurance.
  • Federal Trade Commission (FTC): Offers a funeral costs and pricing checklist that can help you estimate expenses.
  • Financial advisors: Consulting a certified financial advisor can offer personalized guidance tailored to your situation.
  • Insurance agents: They can provide in-depth information about products from specific companies.

Checklist: Next Steps to Take

If you’re ready to start exploring burial insurance options, here’s a checklist to guide you:

  • Assess your needs and potential funeral costs.
  • Consult your family and loved ones.
  • Compare different types of burial insurance.
  • Get multiple quotes from reputable providers.
  • Review policy terms, including any exclusions and waiting periods.
  • Make a decision and purchase a policy.
  • Inform your beneficiaries about the policy and where to find it.


Choosing the right burial insurance is a significant decision that requires thoughtful consideration. It not only provides financial relief for your loved ones but also ensures that your final wishes are met. Talk to an insurance professional if needed.  By understanding the different types of burial insurance, identifying your needs, and comparing various options, you can secure peace of mind for yourself and your family.

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