What is Burial Insurance?

Burial insurance, also known as final expense insurance, is a small, permanent life insurance policy.

Like other types of life insurance, the death benefit is typically tax free for your beneficiaries, who can use the money for any purpose.

Permanent insurance offers a guaranteed payout no matter how old you are when you die, whereas term policies expire when you reach a certain age.

Here are three more factors to consider:

Burial Insurance Coverage

Burial insurance is simply a whole life insurance policy that’s marketed a certain way: to help your loved ones cover costs like your funeral, burial or cremation.

Because the policy is small, it is not used to provide long-term financial security for a surviving spouse, child or dependent adult. Instead, it it meant only to cover final expenses.

Cost of Burial Insurance

The premiums for burial insurance are more affordable compared to permanent coverage with a larger benefit. Final expense policies typically have a death benefit of $5,000 to $50,000.

However, you may get more coverage per premium dollar if you can afford a larger permanent policy or if you only need term coverage.

Qualifications

Because the potential payout is small by general insurance policy standards, a burial expense policy can be easier to qualify for, especially if you have preexisting health conditions. You may have to answer health questions, but you likely won’t need a medical exam to get coverage.

Options

Many people have more options for life insurance coverage than they realize, even if they’re older or not in great health.

Life insurance professionals who offer policies from many different carriers can help you find the right coverage at the right price.