What Is Burial Insurance? A Guide on the Key Things to Know

Funerals can be expensive, and so often we aren’t in a position to plan for them. Funeral costs vary depending on where you live and what arrangements are made. But the average casket cost is about $2,000 today and can run well over $10,000.

This can be a huge burden to your loved ones. To help alleviate this constraint, many people are turning to burial insurance. Continue reading to find out what is burial insurance, how it works, and how it might help you.

What Is Burial Insurance?

Burial insurance is also known as “final expense insurance.” It is essentially a whole life insurance policy that can be used for almost anything.

The insured pays a monthly or annual premium, which is based on their age, general health, and the amount of the policy. Typical payouts range from a few thousand dollars to upwards of $25,000.

Burial insurance policies are available for purchase through most life insurance agents. Some funeral homes offer them as well. Anyone can purchase them, but it is a particularly attractive option for people who want peace of mind following a health scare, such as after a heart attack.

Advantages of Burial Insurance

There are a number of advantages to having burial insurance. These include:

  • Financial peace of mind
  • Planning for the unexpected
  • Flexibility and ease of purchase

Financial Peace of Mind

Funeral prices continue to rise across the board. Even the most basic funeral can be expensive. The cost of embalming, memorial services, headstones, funeral plots, flowers, and wreaths can all start to add up.

Cremation can save on embalming and casket costs. And even mushroom burial suits are becoming popular, for economic and environmental reasons. But these alternatives to traditional burial are not without expenses. The jumping-off point for mushroom suits is $1,500, and urns can be quite costly as well.

Regardless of what arrangements you wish for your funeral, burial insurance makes sure that all of these expenses are taken care of.

Planning for the Unexpected

Covering costs is not the only advantage of burial insurance. Most people don’t like thinking about their funeral. And, for this reason, this can make it difficult to plan for. This is even moreso the case if it is an unexpected death.

The point is that a funeral is not a time conducive to loved ones “shopping around” and finding the best deals on arrangments. The ones we leave behind will be in a sorrowful emotional state. It is a time to grieve, not worry to worry about finances.

Having an influx of funds to cover expenses can help this time go more smoothly for them. It is one less thing they have to worry about.

Ease of Purchase and Flexibility

One of the biggest advantages of burial insurance is that it is easy to get. Unlike many life insurance plans that require in-depth medical examinations, burial insurance usually only requires the insured to answer a few simple health-related questions.

Also, unlike other savings mechanisms that require payouts to be used for specific things, beneficiaries of burial insurance plans can use the money however they like.

Find a Plan Today

Don’t risk waiting to finalize how your funeral expenses will be paid. You can plan for it today by purchasing a burial insurance plan that will cover these costs, whether they are far down the road or tomorrow. It will give you the peace of mind to know that your loved ones will be taken care of in their time of grief.

We hope that this information has been useful. In addition to exploring topics like “What is burial insurance?” our blog covers a wide variety of lifestyle topics, including travel, food, and fashion. Be sure to check them out.

Wealth Creation and Saving Strategies | OnMoneyMaking