Burial insurance, also known as final expense or funeral insurance, is a specialized form of life insurance designed to assist your surviving family in covering the costs associated with your funeral and burial upon your passing. This type of insurance is becoming increasingly essential as even basic funerals see a significant rise in costs.
Often capped at around $25,000, burial insurance provides a smaller benefit compared to other life insurance products. Its focus is not on replacing lost income but rather on addressing funeral, burial expenses, and any remaining bills. This insurance caters to individuals aged 40 and older, offering affordability and suitability as larger debts are paid off over time, making it an apt choice for those in poorer health without the need for a medical exam.
The decision to opt for burial insurance rests on individual circumstances. Consider whether your existing life insurance covers all outstanding debts and provides sufficient funds for your funeral and burial. With national average funeral costs nearing $10,000, inadequate life insurance may leave substantial bills for your family to handle.
Social Security does offer a modest sum of $255 to your family upon your demise. However, this amount is far from adequate to cover funeral or burial expenses.
The premium for a burial insurance policy varies based on factors such as age, gender, and benefit amount. While it typically ranges from $50 to $150 per month, obtaining a personalized quote is necessary. Unlike pre-paying for a funeral, burial insurance provides flexibility, allowing changes to burial location or the chosen funeral home. The death benefit is also versatile, free for use as needed.