Should You Consider Burial Insurance?

Burial insurance has grown in popularity in recent years as a way to prepare for the inevitable expense of a funeral. This insurance is used as an alternative to life insurance and provides different benefits. Because this insurance covers the inevitable, when you get this type of policy, the insurance company knows that you will use it at some point. Therefore, the insurance provider will charge accordingly.

What it Covers

Burial insurance is designed to pay for your final expenses. It is not like life insurance in that it does not provide you with a large lump sum to use as you see fit. It only pays for any expenses associated with burial. It will pay for:

  • The coffin,
  • The burial plot,
  • And your burial clothing.

Using Life Insurance

Many people in this situation simply use their life insurance payout to cover any burial expenses. If the policy is large enough, this may not be a problem. However, burial expenses, like everything else continue to rise. Therefore, in the future, it could take a large chunk of your life insurance money. If your policy is not very large, then the burial expenses could waste most of the money your family receives. If you want your family to enjoy the full benefit of your life insurance policy, burial insurance is a good way to ensure that your family receives more money.


The burial insurance industry has recently experienced several scams. In fact, it has been so bad that certain states have moved to ban them all together. Certain companies say that they will provide burial benefits for a certain price and after paying your premiums, the burial insurance company is nowhere to be found. They don't pay for the burial and end up burdening the family even more costs. Before you invest in a burial insurance policy, be sure and do your homework about the prospective company. Check the Better Business Bureau to see if they are who they say and review their track record.

Is it worth it?

Deciding whether burial insurance is worth the costs depends on your insurance coverage. If you have a multimillion dollar life insurance policy, it might be a little overkill. If you are on a fixed budget and your family will not be receiving much of a life insurance benefit when you die, it might be in your best interest to prepay for your final expenses with a monthly payment. Look at your financial situation and decide if it is in your best interest before making any decisions.

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