What Is Burial and Final Expense Insurance?
Key Takeaways
- Burial insurance, or final expense insurance, provides a guaranteed payout to cover funeral costs, medical bills, and other end-of-life expenses.
- Compared to other types of life insurance, policies have smaller death benefits but offer quick payouts to beneficiaries, easing financial burdens during a difficult time.
- No medical exam is required, making coverage accessible for seniors and individuals with health conditions, though premiums may be higher based on age and risk factors.
- Consider insurer reputation, death benefit levels, and policy terms to find the right plan.
Burial insurance, or final expense insurance, pays for your end-of-life expenses. When you die, the benefit helps your loved ones afford your funeral, medical bills, and other costs. It’s easier to get than other types of life insurance because it doesn’t require a medical exam, and you’ll have coverage for as long as you keep paying your premiums.
Learn more about how burial life insurance could ease some of the financial burden after your passing.
Life Insurance At a Glance
Life insurance provides a lump-sum payout to your loved ones after death, though some policies may offer options such as receiving the payout in installments. You pay a monthly premium to keep your coverage active until death.
The two main types of life insurance are term life and whole life. Term-life insurance plans only provide coverage for a certain number of years, while whole-life policies provide coverage for as long as you pay your premiums.
As of 2024, 57% of men and 46% of women in the United States had a life insurance policy. In particular, burial life insurance, a type of whole-life insurance, is an increasingly popular choice. The burial insurance market was valued at $142.9 billion in 2022 and is expected to reach $370.1 billion by 2032. Investing in this type of insurance makes it easier for your loved ones to pay for your funeral and other costs.
Final Expense Insurance vs. Other Life Insurance
| Type | Category | Typical Payout | Medical Underwriting | Details |
| Final Expense | Permanent | Up to $25,000 | None | Provide lifelong coverage with a death benefit that can help pay off remaining debts and burial costs |
| Term | Term | No upper limit | Required | Provide temporary and/or supplementary life insurance coverage for a set period of time |
| Whole | Permanent | No upper limit | Required | Provide lifelong coverage with a death benefit that can provide income replacement and more to beneficiaries |
| Universal | Permanent | No upper limit | Required | Functions similarly to whole life insurance but premiums and death benefit can be adjusted |
| Variable | Permanent | No upper limit | Required | Functions similarly to whole life insurance but includes investment component to potentially boost cash value |
Understanding Final Expense Insurance
Final expense insurance is permanent life insurance, meaning that coverage never expires as long as you pay your premiums. It is designed to cover end-of-life expenses and often has a lower benefit amount than other types of life insurance. It also pays out faster than other life insurance, so your beneficiary can get money immediately.
People primarily choose final expense insurance so they don’t burden their families with their final expenses. The median cost of a funeral with a casket and burial in the United States is $8,300, which could be a lot for loved ones to handle unexpectedly.
Key Features of Burial Insurance
- Guaranteed death benefit: Your family receives a payout upon your death as long as you’ve kept up with your premiums.
- Fixed premiums: Once you sign up for a policy, your premium amount never changes, even if you develop a serious health condition.
- No medical underwriting required: You can take out a burial insurance policy with no physical exam.
- Smaller death benefits than other types of life insurance: Final expense insurance policies typically provide up to $50,000 in benefits, which can cover a funeral and outstanding debts.
Why Burial Insurance?
Burial insurance may be a good option for those seeking the following:
- Eligibility accessibility: These policies don’t require a medical exam, so even people disqualified from other life insurance plans for health reasons can buy a policy.
- Help paying medical expenses: Final expense life insurance can offer flexibility to pay for medical or hospice bills and other costs.
- Cash without selling assets: Final expense life insurance can also be a good option if you own a home but don’t have a lot of savings. A burial life insurance plan gives your family access to cash without selling your assets.
What Does Burial Insurance Cover?
Some ways to use the to use a burial insurance payout include:
- Burial costs, including a plot or vault
- Casket
- Cremation costs
- Flowers
- Funeral arrangements, including viewing and service
- Headstone
- Legal costs
- Medical bills
- Obituary notices
- Transportation
- Urn service
Secure your family’s future with Final Expense Life Insurance.
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Costs For Burial Life Insurance
There are several costs involved with burial life insurance, including:
- Premiums: The premium is your monthly fee to keep your coverage active. The premium varies based on your plan, policy amount, and personal risk indicators.
- Death benefit: This is the payout your loved ones receive upon your death. Amounts vary but typically range from $2,000 to $50,000.
- Cash value: Many burial life insurance plans build cash value you can borrow from while you’re still alive. Part of your premium goes to this amount, earning interest over time.
How to Choose a Burial Insurance Policy
Evaluating a burial insurance policy goes beyond comparing premium prices. Take the following steps to narrow down plan options:
- Consider overall insurer reputation. Check online reviews and the Better Business Bureau to see what other customers have to say about any companies you’re considering.
- Look into the cash value growth opportunity. If the plan comes with a cash value benefit, see how the policy loan works.
- Find an appropriate death benefit level. You may not need the maximum benefit if you have savings. A lower death benefit can mean a more affordable premium.
- Read the fine print. Make sure you understand the terms and conditions, including waiting periods and exclusions. Consider consulting with a licensed insurance agent who can go over these details with you.
How to Enroll in a Final Expense Insurance Plan
Once you’ve found the right plan, it’s time to enroll. Here are the steps you’ll likely need to take:
- Provide basic information, such as your name, age, and address.
- Answer some questions about your health if the insurer requires it. Final expense policies likely will not require a full medical exam, but may still ask questions about your health status.
- Decide how much coverage you want based on your individual needs, burial preferences, savings, and any outstanding debts you may have.
- Sign and submit your application.
- Make your first premium payment.
Putting It All Together
Burial life insurance helps your loved ones afford your final expenses after death. It has lower coverage amounts than typical life insurance, but its fast payout makes it easier to cover funeral costs and medical bills.
Finding a final expense insurance plan on your own can be tricky, so consider working with a licensed insurance agent. They can help you review your options and find the coverage that works for you.
Sources
- Burial Insurance Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Age of End User: Global Opportunity Analysis and Industry Forecast, 2023-2032. Allied Market Research.
- U.S. Life Insurance Need Gap Grows in 2024. LIMRA.
2023 NFDA General Price List Study Shows Inflation Increasing Faster than the Cost of a Funeral. National Funeral Directors Association.