Let’s be honest. No one likes to think about their death or death-related situations. People already have enough on their plate to think about the financial aspects of their funeral.

Death is an uncomfortable subject. But once you have planned your future and made the necessary arrangements to execute those plans, you’ll have one less thing to worry about.

There are life insurance plans that cover burial or funeral expenses while some plans are specifically created for any type of burial you want or any specific arrangements that might interest you. So if the question, ‘is burial insurance worth it?’  or ‘what exactly are they?’ crosses your mind, then let us put your thoughts at ease.

So what is Funeral/Burial Insurance?

Also known as a burial or final expense insurance, Funeral insurance is designed to be a small policy that ranges from $5,000 to $25,000. The policy is paid upon the insured member’s death to either a designated recipient, such as the executor of an estate or a family member making funeral arrangements. You can also make prior arrangements to pay a funeral home directly that will then carry out all the required arrangements.

What do they cover?

As the name implies, funeral insurance covers the expenses that are directly related to the funeral ceremony – cremation or burial, depending on your preference. The expenses cover a headstone purchase, the cemetery plot, or an urn or other container for your ashes after cremation.

However, it does not cover hospice care, medications, or anything else you may need before you pass. Just like life insurance, the policy is paid out only after your death.

It’s really important that you choose the right person to handle your funeral arrangements – a person who will use the money for the purpose they’re intended for. Because, theoretically, your family members are not legally obligated to use the money for your funeral – they can use the money for anything they like.

How much do they cost?

The most common funeral insurance plan covers $10,000 and on an average, the policy costs $50 per month, However, depending on your age, gender or health, the monthly premium can be higher or lower.

But it must be noted that many financial and insurance experts say that this insurance is a “last resort” type of coverage. Because the same monthly premium paid toward a term life insurance policy can get you much higher coverage than a funeral or burial policy would pay.

That is why experts say that such type of policies are meant for those who cannot qualify for a term life policy, and have no funds saved up for their funeral.

Also, people often mistake burial insurance as a separate product from funeral insurance, but it’s essentially the same. However, the arrangements made with a funeral home before your death falls under pre-need policies that payout at your death, and not before.

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