Let's talk about something most people avoid thinking about: what happens when you're gone. Specifically, who's going to pay for your funeral? The average funeral and burial costs nearly $8,000 to $10,000 these days, and if your family doesn't have that cash sitting around, they're left scrambling during an already difficult time. That's where burial insurance comes in.
You might also hear it called final expense insurance or funeral insurance—they're all the same thing. It's a small life insurance policy designed specifically to cover the costs that come with saying goodbye. No six-figure death benefits or complicated paperwork. Just enough coverage to handle funeral expenses, outstanding medical bills, and other end-of-life costs without leaving your loved ones with a financial burden.
What Exactly Is Burial Insurance?
Burial insurance is a type of whole life insurance with a smaller death benefit—typically between $5,000 and $25,000. Unlike term life insurance that expires after a set period, burial insurance lasts your entire life as long as you keep paying your premiums. Your premiums stay the same and never increase, even as you age.
Here's how it works: You pay a monthly premium to your insurance company. When you pass away, the company pays out the death benefit as a lump sum to whoever you named as your beneficiary—usually a spouse, adult child, or other family member. They can use that money however they need to: funeral home costs, burial plot, casket, cremation, memorial service, outstanding medical bills, or even everyday expenses while they take time off work to grieve.
The beauty of burial insurance is its simplicity. Most policies have minimal underwriting requirements, meaning you won't need to take a medical exam or navigate complex health questionnaires. Some guaranteed issue policies accept everyone who applies, regardless of health conditions. That makes it accessible for seniors and people with pre-existing health issues who might struggle to qualify for traditional life insurance.
Why Funeral Costs Are Higher Than You Think
Most people drastically underestimate funeral costs. According to the National Funeral Directors Association, the average funeral runs $7,848 for basic services. But that's just the starting point. Add a burial vault—required by many cemeteries—and you're looking at nearly $10,000. Choose a fancier casket, a larger memorial service, or burial in an expensive area, and costs can easily exceed $15,000. In Hawaii, the average funeral costs nearly $15,000.
Even cremation—often viewed as the budget option—averages $6,280 nationwide. That includes the cremation itself, a basic urn, and memorial service. If you want viewing hours before cremation or a nicer urn, add a few thousand more.
Then there are the extras nobody thinks about: flowers, obituary notices, death certificates, transportation, catering for a reception, travel expenses for out-of-town family members, and potential lost wages while your loved ones handle arrangements. These hidden costs can add another $2,000 to $5,000 to the total bill.
Without burial insurance or savings set aside, your family faces tough choices: drain their savings accounts, put funeral costs on credit cards with high interest rates, ask relatives for money, or settle for a bare-bones service that doesn't properly honor your memory. None of those are situations you want to leave behind.
Who Should Consider Burial Insurance?
Burial insurance makes the most sense if you're between 50 and 85 years old and don't have substantial savings or other life insurance to cover funeral expenses. It's particularly valuable if you have health issues that would make qualifying for traditional life insurance difficult or expensive.
Here's who typically benefits most: seniors who want to protect their retirement savings from being depleted by funeral costs, people with chronic health conditions like diabetes or heart disease who can't qualify for cheaper term life policies, anyone who doesn't want to burden adult children or other family members with funeral expenses, and people who want a simple, no-exam insurance option with guaranteed approval.
On the flip side, burial insurance might not be necessary if you already have a life insurance policy with adequate death benefits, if you have substantial savings earmarked for final expenses, or if you're young and healthy enough to qualify for cheaper term life insurance with higher coverage amounts. A 30-year-old in good health should probably look at term life instead—you'll get more coverage for less money.
Understanding Your Coverage Options
Burial insurance comes in two main flavors: simplified issue and guaranteed issue. The difference matters because it affects your premiums and when your full coverage kicks in.
Simplified issue policies ask you health questions but don't require a medical exam. Questions typically cover major conditions like cancer, heart disease, or stroke within the past few years. If you're relatively healthy or your conditions are well-managed, you'll likely qualify and get full coverage immediately. Premiums are typically lower because the insurance company has some health information to assess risk.
Guaranteed issue policies accept everyone—no health questions, no medical exams, no denials based on pre-existing conditions. The catch? Premiums are higher, and most policies include a waiting period of two to three years. If you pass away during that waiting period from natural causes, your beneficiary receives a refund of premiums paid plus interest, but not the full death benefit. After the waiting period ends, full coverage applies regardless of how you die.
Most policies pay out between $5,000 and $25,000, though some go as high as $50,000. How much do you need? Calculate the average funeral cost in your area, add any outstanding debts you want covered, factor in a buffer for unexpected expenses, and that gives you a reasonable coverage target. For most people, $10,000 to $15,000 provides adequate coverage without overpaying for unnecessary protection.
What You'll Pay and How to Qualify
Monthly premiums for burial insurance typically range from $30 to $70, though the exact cost depends on your age, gender, health status, coverage amount, and whether you choose simplified or guaranteed issue. A healthy 60-year-old woman might pay $40 per month for $10,000 in coverage, while an 80-year-old man with health issues might pay $120 per month for the same coverage.
To qualify, you need to meet basic requirements: be between 50 and 85 years old (some insurers accept younger or older applicants), have a Social Security number or taxpayer identification number, be physically located in the United States when you apply, and be a U.S. citizen or legal resident. That's it for guaranteed issue policies. Simplified issue policies add health questions but still skip the medical exam.
The application process is straightforward. Most people can apply online or over the phone in 15 to 30 minutes. You'll provide basic information, answer health questions if it's a simplified issue policy, choose your coverage amount and beneficiary, and get an approval decision immediately or within a few days. Coverage typically starts within a week of your first premium payment.
Getting Started With Burial Insurance
If burial insurance sounds like the right fit, start by researching average funeral costs in your area—they vary significantly by state and region. Calculate how much coverage you actually need based on realistic funeral costs plus any outstanding debts or final expenses you want covered. Don't buy more coverage than necessary just because an agent suggests it.
Compare quotes from multiple insurers. Premiums can vary significantly between companies for the same coverage. Look beyond just the monthly cost—check the company's financial strength ratings, read customer reviews, understand waiting periods and exclusions, and confirm what happens if you miss a payment.
Once you have a policy, tell your beneficiary where to find your policy documents and how to file a claim. Many families discover burial insurance exists only after frantically searching through paperwork during a crisis. Keep your policy information in an obvious place, share the insurer's contact information with your beneficiary, and consider giving a trusted family member a copy of your policy documents.
The peace of mind that comes from knowing your family won't face financial stress during an already emotional time? That's worth the modest monthly premium for most people. Get quotes today and make this one less thing your loved ones have to worry about when you're gone.
