Understanding Funeral Insurance
Funeral insurance helps ensure your family isn't burdened with funeral costs when you pass. It's typically easier to qualify for than traditional life insurance and provides a specific amount to cover end-of-life expenses.
Typical Coverage
$5K - $25K
Most common amounts
Monthly Premium
$30 - $100+
Varies by age/health
Waiting Period
0-3 years
For guaranteed issue
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For outstanding bills, medical expenses, or estate needs
Insurance vs Pre-Planning
Funeral Insurance
- Flexibility to use any funeral home
- Coverage can be used for any expenses
- Protected if funeral home closes
- May pay more than benefit if you live long
- Doesn't protect against price increases
Pre-Planning / Pre-Paying
- Locks in today's prices
- Choices are already made
- May protect assets for Medicaid
- Tied to specific funeral home
- Risk if provider goes out of business
Frequently Asked Questions
Funeral insurance (also called burial insurance or final expense insurance) is a type of whole life insurance designed to cover funeral costs and related expenses. Policies typically range from $5,000-$25,000 and have simplified underwriting, making them easier to qualify for than traditional life insurance.
No, they're different. Funeral pre-planning is a contract with a specific funeral home for predetermined services at today's prices. Funeral insurance is a life insurance policy that pays a death benefit that can be used for any funeral provider or other expenses. Both have advantages.
Pre-paying locks in today's prices but ties you to one funeral home. Insurance provides flexibility but premiums add up and don't lock in prices. A hybrid approach can work: pre-plan specific services but pay through insurance. Consider your health, age, and likelihood of moving.
Consider the type of service desired ($7,000-$15,000 for traditional burial, $1,000-$7,000 for cremation), plus outstanding debts, medical bills, and any additional expenses. Most people purchase $10,000-$15,000 in coverage. Our calculator can help estimate your needs.
Most funeral insurance has guaranteed acceptance (no health questions) or simplified issue (few health questions). However, guaranteed policies often have a 2-3 year waiting period for full benefits. If you die within this period, beneficiaries may only receive premiums paid plus interest.
The younger you buy, the lower your premiums. However, buying too young means paying premiums longer. Most people purchase funeral insurance between ages 50-80. After 80, premiums become expensive and waiting periods are common.