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Burial insurance is a type of whole life insurance policy with a smaller death benefit (typically $5,000 to $25,000) designed specifically to cover funeral, burial, and other end-of-life expenses. It requires minimal or no medical underwriting, making it accessible for seniors and those with pre-existing health conditions.
Quick Facts About Burial Insurance:
The reality is that funeral costs are rising, with the median cost for a funeral with viewing and burial hitting $7,848 in 2021. For retirees on fixed incomes, the fear of leaving this financial burden to family is common. Many worry, “I don’t want to be a burden.”
Burial insurance offers a simple solution. It ensures your final expenses are covered without breaking your budget or putting your family through financial stress during an already difficult time.
This guide provides clear, jargon-free answers about burial insurance, covering what it is, its costs, and who qualifies, helping you make an informed decision.
Think of burial insurance as life insurance’s more focused cousin. While traditional life insurance is designed to replace income or leave a large inheritance, burial insurance has one clear mission: making sure your funeral and final expenses don’t drain your family’s savings.
Also known as final expense insurance, it’s a type of whole life insurance with a smaller death benefit, typically from $5,000 to $25,000, though some policies go up to $50,000. This amount is often exactly what families need to cover a funeral and related costs.
Like other whole life policies, burial insurance accumulates cash value over time. A portion of your premium goes into a tax-deferred account that you can borrow against if needed, providing a small financial cushion. For more details, see our complete guide on final expense insurance.
Here’s how burial insurance compares to other life insurance options:
| Feature | Burial Insurance (Final Expense) | Traditional Term Life Insurance | Traditional Whole Life Insurance |
|---|---|---|---|
| Purpose | Cover funeral, burial, and other end-of-life expenses | Income replacement, cover large debts (mortgage), family support | Long-term financial planning, estate building, cash value growth |
| Coverage Amt. | Smaller, typically $5,000 – $25,000 (up to $50,000) | Larger, often $100,000 – $1,000,000+ | Larger, often $50,000 – $1,000,000+ |
| Underwriting | Simplified or Guaranteed Issue (few/no health questions, no exam) | Full underwriting (medical exam, detailed health history) | Full underwriting (medical exam, detailed health history) |
| Cost | Generally affordable premiums, but higher cost per dollar of coverage due to accessibility | Lower cost per dollar of coverage (especially when young), temporary | Higher premiums than term, but permanent and builds cash value |
| Duration | Lifelong (as long as premiums are paid) | Specific term (e.g., 10, 20, 30 years) | Lifelong (as long as premiums are paid) |
| Cash Value | Yes, accumulates over time | No | Yes, accumulates over time |
A key feature of burial insurance is its flexibility. The money is paid as cash to your chosen beneficiary, who can use it for any pressing expenses—not just the funeral. Common costs include funeral home services, the casket or urn, burial plot, and headstone. It can also cover embalming, transportation, and flowers.
Beyond the funeral, the funds can be used for so much more. This includes leftover medical bills, legal costs for probate, or outstanding personal debts like credit cards. This prevents creditors from going after your family’s assets. The U.S. Consumer Financial Protection Bureau offers helpful guidance on debt after death.
In short, it’s a financial cushion that lets your family focus on grieving, not scrambling to pay bills.
According to the National Funeral Directors Association, the median funeral cost with a burial was $7,848 in 2021, and over $9,000 with a vault. Cremation is a less expensive option, averaging around $5,150.
Your needs will depend on your personal wishes, your location, and whether you have other debts you’d like to cover. Do you want a simple service or a large one? Would you like to leave extra for travel costs for family?
To get a realistic estimate, a tool like the ShieldWise™ online final expense calculator can help. It takes the guesswork out of calculating personal needs and helps you choose a coverage amount that matches your wishes and budget.
Now that you know the basics, let’s look at how these policies work. Understanding the policy types, premium calculations, and claims process will help you feel confident in your decision.
Burial insurance is designed to be accessible, even if you have health issues. The difference lies in the underwriting process. There are two main types:
Simplified Issue Burial Insurance requires you to answer a few health questions on the application, but there is no medical exam. If your health is reasonably good, you can get approved quickly, often with immediate full coverage. Some policies may have a graded death benefit, where the full payout for natural death is only available after a two or three-year period. This is a great option for those in decent health who want to avoid the hassle of a medical exam.
Guaranteed Issue Burial Insurance has no health questions and no medical exam. Acceptance is guaranteed if you’re within the eligible age range (usually 50 to 85). These policies almost always have a waiting period of two to three years. If you pass away from natural causes during this time, your beneficiary receives the premiums you paid plus interest (often 10%). After the waiting period, the full benefit is paid. This is ideal for individuals with serious health conditions who might not qualify for other coverage.
The premium you pay for burial insurance depends on several factors:
Final expense life insurance rates can start as low as $63 per month for coverage between $5,000 and $40,000. For people aged 50 to 70, monthly premiums typically range from $12 to $193, depending on the factors above. For more on this topic, Investopedia has a helpful explanation of what an insurance premium is.
To see what’s available for your budget, you can explore final expense options with ShieldWise™ and get personalized quotes.
Getting burial insurance is designed to be simple. Here’s what you need to know:
Who qualifies? Most policies are available to people between 50 and 85. For simplified issue, you’ll answer a few health questions. For guaranteed issue, acceptance is automatic if you’re in the age range.
What about waiting periods? As mentioned, many policies (especially guaranteed issue) have a two- to three-year waiting period. During this time, if death is from natural causes, your beneficiary receives a return of premiums plus interest. However, if death is accidental, the full benefit is typically paid immediately. After the waiting period, the full benefit is paid regardless of the cause of death.
How do claims work? The process is refreshingly simple. Your beneficiary contacts the insurance company with a certified copy of the death certificate and a claim form. Insurers typically process these claims quickly, as they understand the funds are needed for immediate expenses. This efficiency is a key reason people choose burial insurance.
Choosing burial insurance is a personal decision based on your age, health, savings, and family situation. It works beautifully for some people and less so for others. Let’s walk through the key considerations to help you decide.
Every financial product has trade-offs. Here’s a straightforward look at the pros and cons of burial insurance.
Pros:
Cons:
Burial insurance is a great tool, but it’s not the only one. Depending on your situation, other options might work better.
We hear a lot of questions about final expense coverage. Here are clear, straightforward answers to some of the most common ones.
Yes, but it’s not much. Social Security provides a one-time, lump-sum death payment of only $255 to an eligible surviving spouse or child. With average funeral costs ranging from $7,000 to $10,000, this payment is not a sufficient funding source for final expenses. It’s a small help, but a separate plan is necessary to cover the bulk of the costs. You can find more information on the government’s website about Social Security death benefit details.
Absolutely. This is a key benefit of burial insurance. The death benefit is paid as cash to your named beneficiary, who has complete freedom to use the money as needed. There are no restrictions. The funds can cover medical bills, outstanding credit card or loan debts, legal fees, or even daily living expenses for your family. It provides a flexible financial safety net. The U.S. Consumer Financial Protection Bureau has helpful guidance on debt after death for families navigating these issues.
Burial insurance plans differ mainly in who receives the payout and how it can be used.
Most burial insurance policies (like those offered through ShieldWise™) pay the death benefit directly to a named beneficiary. This provides maximum flexibility, as the beneficiary decides how to use the funds. These policies also have price-locking features, meaning your premiums never increase, and they build cash value over time.
Pre-need insurance is different. You arrange it directly with a funeral home for specific services. The policy’s benefit is paid to the funeral home to cover those costs, often locking in today’s prices. However, this option is less flexible. If your family’s plans change or you move, transferring the policy can be difficult. While pre-need plans offer price certainty, they sacrifice the flexibility that standard burial insurance provides.
We’ve covered the essentials of burial insurance, from what it is to how it protects your family. It’s a practical tool for peace of mind. It ensures the people you love most aren’t left with a financial burden during a time of grief.
By planning for these final expenses, you give your family the freedom to focus on celebrating your life, not scrambling to pay bills. That peace of mind is a powerful gift.
At ShieldWise™, our marketplace simplifies the process. You can easily compare plans from trusted carriers, get instant online quotes, and find the right coverage without confusing jargon. Taking this step now is a profound act of love for your family.
Ready to explore your options? We’re here to help. Compare Final Expense Insurance plans and get a quote today and give yourself—and your loved ones—the gift of financial security.
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