Burial Insurance

Burial insurance is a term that refers to a variety of inexpensive insurance options related to burial costs. Historically, burial insurance refers to low cost limited policies and to pre-paid burial services, which are not technically a form of insurance at all. Pre-paid burial policies pay toward the cost of a funeral or other type of burial service. Usually, the benefits are paid to the funeral home named on the policy. In some cases, the insured contracts directly with a specific funeral home (or other burial services provider) to pre-purchase service and burial products.

Burial insurance is attractive because it can be easier to obtain. It does not require a medical examination and the premiums are low. These policies, therefore, are good options for people who have difficulty obtaining other forms of insurance. Direct pre-purchasing agreements allow consumers to pre-select what they can afford now. Often, payment plans are available.

While burial insurance is an attractive option because of the low premiums, the insured should plan carefully to make sure that they have enough insurance to cover the ever-rising cost of burial. And it is better to buy as early as possible, as the cost rises as you get older.

Older Burial Policies

Some older burial policies provide for a complete funeral service, instead of a specific amount. Though these policies seem more expansive, they often limit the choices of products to the lesser value options and they limit the extent of the services. They may have other restrictions to the insured's ability to change items or add to the services provided. Burial policy holders should read the policy very carefully to make sure that it still covers the expenses originally contemplated.