What is Burial Insurance?
Burial insurance, also known as funeral insurance or whole life insurance, is a type of life insurance policy that provides funds to cover the expenses associated with death, such as funeral costs, headstones, cremation, plots, etc. This type of insurance allows individuals to pre-pay or set aside money for their final expenses.
Types of Burial Insurance
There are a few main types of burial insurance policies available:
Whole Life Insurance
Whole life insurance provides both life insurance protection and a savings component that builds cash value over time. The death benefit can be used to cover burial or funeral costs upon the policyholder's passing. Premiums are paid consistently throughout the insured's lifetime.
Burial Insurance also known as final expense insurance, provides limited life insurance coverage that helps cover funeral costs, burial expenses, and other related costs after the policyholder’s death.

Burial Insurance
Pure burial or funeral insurance specifically covers expenses associated with death, such as burial, cremation, and headstones. The coverage amount is paid as a lump sum that can be assigned to a beneficiary to pay for services. Policies have level premiums that don't change over the life of the insurance.
Final Expense Insurance
Considered a type of burial insurance, final expense insurance provides a small life insurance policy —usually between $5,000 and $25,000—to cover last expenses without a lengthy medical exam. Policies have simplified applications procedures.
Advantages of Burial Insurance
There are several advantages to purchasing burial insurance:
It ensures funds are available to cover the costs associated with death without placing that financial burden on loved ones.
Premiums remain level and don't increase with your age like some other types of life insurance.
Policies don't require a medical exam so they're easy to qualify for.
You can pre-plan details and pre-pay for services to remove stress from your family later.
Lump sum payouts provide flexibility since they can be assigned to anyone you choose.
Death benefits are generally income-tax free to beneficiaries.
Disadvantages of Burial Insurance
However, burial insurance also has some disadvantages:
Coverage amounts tend to be quite limited (under $25,000).
No cash value builds up within the policy that can be borrowed against.
Once purchased, the coverage typically can't be increased if needs change.
Cost of coverage may increase as you age depending on the policy.
Policies do not pay out if the insured passes due to suicide within the first couple years.
How Much Coverage is Needed?
The amount of coverage required depends on the final expenses you expect to incur, which can vary significantly depending on your location. On average in the U.S.:
Traditional burial typically ranges from $8,000 to $10,000.
Cremation averages around $6,000 nationally but can be lower or higher depending on urn selection, services, plot, etc.
A casket alone averages $2,000-$3,000 while vaults typically range from $1,200 to $3,000 or more.
Headstones normally cost between $500-$3,000 depending on material selected.
Additional costs like obituary notices, flowers, food following a service should also be factored.
Purchasing Burial Insurance
To purchase burial insurance, you'll need to work with an insurance agent or company to determine the best policy and coverage level for your needs and budget. The application asks basic information like your age, medical history, beneficiary details, etc. You may need to answer health questions depending on the policy.
Once approved, you'll choose your premium payment frequency and method. Coverage goes into effect provided all information was accurately disclosed on the application. Be sure to review your policy details and contact the insurer with any question. Maintaining up-to-date beneficiary information is also advised.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)