Think Burial Insurance Plans Are Just About Funerals? Think Again
- Cathy Anderson
- June 16, 2025
- 12:07 pm
Key Takeaways
- Burial insurance covers funeral costs and expenses like medical bills and debts, offering financial relief to loved ones.
- It’s easier to obtain than traditional life insurance with no medical exam and coverage from $2,000 to $50,000.
- While not for investment, it’s a smart choice for those with limited savings or who want to ensure their final wishes.
Burial insurance is a kind of whole life insurance policy that not only covers the burial and funeral expenses but also offers several other advantages, including cremation and medical bill clearance. Additionally, it is among the smartest policies you can choose for your loved ones.
But before opting for this policy, you must have a clear understanding of how it works. Explore how burial insurance benefits you and your family.
The Burial Insurance Explained
As the term burial insurance implies, this policy covers your funeral, burial, and cremation expenses. Typically, it’s most suitable for adults aged 50 years or older. Burial insurance offers fewer benefits when compared with other traditional life insurance policies, but it is the most suitable policy for honoring final wishes.
Generally, the coverage ranges from approximately $2000 to $50,000, thus making it affordable. Moreover, burial insurance policies are easier to obtain as they do not involve any medical exam, even if you are not in good health. This policy may include a waiting period and offer limited advantages.
Average Cost of Burial Insurance
The table below shows the average cost of burial insurance for females according to their age.
| Age | $5K | $10K | $25K |
| 40-50 | $12-14 | $21-24 | $47-55 |
| 55-65 | $15-22 | $28-41 | $64-97 |
| 70-80 | $28-50 | $53-98 | $127-241 |
| 85-90 | $68-150 | $136-300 | $335-651 approx. |
Similarly, the next table shows the average cost for burial insurance for males according to their age.
| Age | $5K | $10K | $25K |
| 40-50 | $14-17 | $25-31 | $57-71 |
| 55-65 | $20-29 | $36-54 | $84-130 |
| 70-80 | $37-69 | $70-135 | $169-332 |
| 85-90 | $95-177 | $178-354 | $440-888 approx. |
General Beliefs Among People Regarding Burial Insurance Policy
Burial insurance covers the funeral costs. As per the National Funeral Directors Association, the average cost of a funeral in the U.S. ranges between $7000 and $12000, depending on the location and the type of services you choose.
The expenses involve funeral home services, flowers, cremation, location of burial, transportation, and memorial services. People do not realize it offers several other benefits apart from burial expenses.
Let’s discuss them in detail.
What Burial Insurance Plans Cover?
Let’s have a look at what benefits burial insurance plans cover.
- If someone dies after a hospital stay, he/she can have an outstanding medical bill. Private insurance policies may not cover this expense. Burial insurance can help pay unpaid hospital bills, medical appliance rentals, and more.
- Handling the belongings and finances of the loved ones after they die can incur some expenses. There may be expenses for court, paperwork, and legal advice or help. In this scenario, burial insurance is of great help as it can pay for things such as court expenses, lawyer fees, and paperwork expenses.
- Family members and loved ones may need transportation and accommodation to attend the funeral. Burial insurance can bear these expenses as well.
- If your family members or loved ones rely on you financially, your death can cause financial instability. Thus, burial insurance comes into play and pays for their groceries, mortgage, and bills, offers childcare, etc.
- Burial insurance helps cover outstanding debts such as personal loans, rent due, auto loans, etc.
Who Should Opt for a Burial Insurance Plan
Below mentioned people should opt for burial insurance plan:
- Adults without life insurance should consider burial insurance plan.
- If a person has limited savings, burial insurance is a smart choice to avoid burdening loved ones or family members after death.
- Burial insurance is a smart option for people who leave behind financially dependent loved ones or family members.
- It is a smart option for people who want to be buried as per their wishes and want everything organized.
Limitations of the Burial Insurance Plan
There are some limitations as well. Some of them are as follows:
- There can be a waiting period. Several policies won’t pay the full expenses if a person dies of natural causes within the first two years.
- Burial insurance does not have an investment feature. If you are planning to grow money over time, then this is not a good option for you.
How to Choose the Right Burial Insurance Plan
The following are some tips to choose the right burial insurance plan:
- Take time to compare plans. Additionally, look at the reputation of insurance companies and read customer reviews.
- Choose the right type of policy as per your needs. Level benefit policy is a kind of policy that gives the complete amount right away in case you die. It is the best option for those who have good health conditions. However, a graded benefit plan is for people who are not in good health, as this policy gives a part of the money if he/she die within the first two years.
- It is important to look for any hidden charges or waiting periods to avoid any confusion or miscommunication.
- Choose the right coverage amount after calculating funeral expenses, medical expenses, and any loans you could leave behind.
Burial Insurance Plan vs Life Insurance Plan
Burial insurance and life insurance are both designed to give financial support to family members or loved ones after the insured dies. However, they have different purposes. Burial insurance is a smaller plan that is meant to cover after-life expenses such as funerals, medical expenses, and loans.
It offers coverage amounts between $5000-$50000. Additionally, one can easily apply for this policy without any medical exam. On the other hand, life insurance policies, like a whole life insurance policy, give a larger payout.
Moreover, they are intended for income replacement or long-term financial support. Thus, funeral insurance plans have a broader approach as compared to burial life insurance. However, opting between the two depends on personal needs and preferences.
In a Nutshell
Burial insurance not only covers funeral expenses, but it also saves your loved ones or family members from financial hardships. Additionally, it gives peace of mind. So, if you are planning to dismiss a burial insurance plan because of the misconception that it is just a funeral plan, it’s time to think again.
To choose the right plan, individuals should compare options, evaluate coverage needs, and understand the policy terms. Unlike traditional life insurance, which provides broader and higher coverage for long-term financial support.
FAQ's
Burial insurance covers funeral expenses and offers other benefits as well, such as medical bills, loans, etc. Typically, the average coverage amount is $5000-$25000 and is easy to apply for.
One should opt for it if he/she is 50 years of age or older.
No, it offers some other benefits as well. Burial insurance can help pay unpaid hospital bills, medical appliance rentals, mortgage, transportation expenses, and more.
