Burial insurance is essentially a type of life insurance that is specifically designed for final expenses such as a funeral, comfort care, or final medical costs. Sometimes, burial insurance is referred to as funeral insurance or final expense insurance.

Eight-four percent of life insurance holders state that planning for final expenses are the reason they bought life insurance in the first place. For many older policyholders, paying for a funeral is top-of-mind and the only reason they buy a life insurance policy at all. 

The Difference Between Burial Insurance and Life Insurance

Burial insurance is a whole life insurance policy that is sold in small amounts—typically from $5,000 to $25,000. Whereas life insurance is intended for people with dependents or who have larger financial obligations like mortgages, children’s college tuition, and income replacement during their working works, burial insurance is only intended to cover the true end-of-life expenses.

Funeral and burial insurance policies typically don’t require a medical exam, and the applications are generally much more simple. Rates are primarily based on age and gender.

The Two Types of Burial Insurance

Burial insurance is typically one of these two whole life policies:

Simplified Issue Life Insurance

Simplified issue life insurance requires no medical exam and only a few health-related questions such as if you’re currently living in a nursing home. With simplified issue life insurance, even though the application is simple, a “yes” to any of the health-related questions could disqualify you.

Guaranteed Issue Life Insurance

On the other hand, guaranteed issue life insurance asks zero questions and there is no medical exam to apply. Applicants can’t be tuned down.

Because there are no medical exams required, applicants typically won’t receive a discounted rate if they are in good health. And, because no health information or medical history is required, the cost of a policy is typically higher than that of a term life insurance policy.

Who Should Get Burial Insurance?

Those who want burial insurance need to make sure that they get enough coverage for the type of funeral they want. Funeral expenses can very considerably depending on the type of arrangement, so it’s important that applicants consider their final wishes before applying for burial insurance.

The national average cost of a funeral with a viewing, burial, and vault is $9,135. The national average cost for a cremation with a cremation casket is $6,645. These figures do not include additional expenses like monuments or gravestones, obituary placements, or flowers. So, as you are considering your funeral costs, those figures should be factored in as well.

Burial insurance is typically best suited for people who are age 50 and up. Burial insurance is easier to qualify for than most life insurance plans, so if a senior doesn’t already have a life insurance policy in place and they are in poorer health with conditions that could disqualify them from normal term life, or that could drive their rates up, burial insurance may be an excellent option.

Additionally, burial insurance policyholders have the option to pre-arrange services and pay for them ahead of time, which takes a lot of work from a loved one’s plate at a time of grieving. 

Start Your Burial Insurance Application Today

Start your burial insurance application today. The application process is seamless, takes only minutes, and the USA Life team will be here to answer any questions you may have.