Funeral expenses are high up on the list of things that we don’t want to think about or plan for, but unfortunately, it is one of life’s inevitabilities and in order to make a difficult time simpler and less worrisome, it may be worth your while to learn more about burial insurance, which also goes by “final expense” or “funeral” insurance.
Burial insurance is basically a life insurance policy with low value, typically topping out at around $50,000. Unlike other types of insurance, burial insurance is made available at the time of death, meaning that the beneficiary you have previously named can use your burial insurance plan to pay for funeral expenses.
Another perk of burial insurance is that the money does not have to spent on just funeral expenses. The beneficiary, usually a trusted member of your family, can use for whatever they wish the balance of the policy after paying for funeral expenses.
Burial insurance is unique in that you can have a policy for as little as $5000 in coverage, which you can’t do with standard term or whole life policy. Any life insurance policy can be used to pay for a funeral and you can instruct your beneficiary to use a portion or all of the death benefit for your funeral. However, if you are seeking just a policy to cover your funeral expenses and maybe a bit more, then a burial policy is likely right for you. However, if you have many financial obligations or dependents who need financial support, you will probably be better off with a policy that covers more than just funeral expenses, such as a standard or whole life policy. That is why burial insurance can be very useful. You don’t need to purchase more insurance than you’ll actually need when taking care of funeral expenses only.
Burial insurance can give you peace of mind at an otherwise very stressful time.