Policy Types

Understanding Burial Insurance

Burial insurance provides the money to cover funeral and burial costs when you die. It can be easy to apply for, may not require a medical exam, and the premium can be very affordable.

Life Insurance Funeral Expenses: Burial Insurance

According the Insurance Information Institute, the definition of burial insurance is typically a whole life insurance policy that provides the money to cover funeral and burial costs when you die.1 These types of policies are desirable for people who want to leave their loved ones with immediate funds to cover their burial or cremation costs, as well as associated funeral expenses.

Also known as funeral or final expense insurance, burial policies are typically small life insurance policies that can range anywhere from $5,000 up to $25,000. Because the death benefit is typically small on these types of policies, premiums can often be very affordable and may be a great option if you are unable to afford a larger premium but would like to preplan for your final expenses.

Burial insurance is generally easy to apply for, and some insurance companies won’t require that you complete a medical exam. For this reason, burial insurance may be a good fit if you’re older or have health concerns that may prevent you from securing a more traditional life insurance policy.

Burial insurance can be purchased through an insurance company or an agent. In many cases, you can buy a burial insurance policy directly from a funeral home as part of estate planning, and naming the funeral home as the beneficiary. When the funeral home is the named beneficiary, a contract of services is typically involved that essentially allows you to prepay for your final expenses, and to make arrangements in advance according to your specific wishes. With this arrangement, the funeral home costs are prearranged so as to not be a financial burden on your family during their time of grief.

Because the costs of a funeral can range widely and unexpected costs can quickly add up, purchasing a burial insurance policy can be a good pre-emptive decision by relieving your loved ones from unexpected and immediate expenses at a very difficult time.

1. http://www.iii.org/article/what-%C2%93burial-insurance%C2%94

Was this article helpful?

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Burial Insurance

Life insurance can be a good way to cover unexpected funeral expenses. With a burial insurance life policy, you can preplan for your funeral expenses so your family isn't left with a financial burden when you die. For more information, visit our learning center.