Funeral Plan Insurance Policies – 2023 Update

Funeral plan insurance policies, also known as funeral plans and preneed funeral insurance, are one of the ways to have peace of mind knowing your funeral cost will be covered when you pass away. It’s possible to have the cost of the funeral covered in advance to save your family from having to pay for it. You can take out a funeral plan from a funeral director or a specialist provider.

Funeral plan insurance policies are linked to a funeral services provider, such as a funeral home. You can make funeral arrangements in advance and are currently billed at current prices. The key advantage of funeral plan insurance policies is the ability to lock in today’s prices for your funeral. You may also be able to transfer the contract to another funeral provider if the need arises, depending on your contract.

There are risks involved in these kinds of policies, so you need to contract with a reputable funeral provider that will still be in business when you die. If you are ready to make your funeral arrangements and know which funeral provider you want, then funeral plan insurance policies are an option.

Once you decide to make financial preparation for your funeral, there are many options available to you. There are certain ways to save on the cost of funerals. Funeral Funds looks at the difference between funeral plans and funeral insurance policies and what is best for you.


How Much Does A Funeral Cost?

According to the National Funeral Directors Association, the average cost of an adult funeral today is $9,135.  It only includes the most commonly selected items for a traditional funeral. It does not cover the cost of the cemetery. A burial plot costs about $2,000, so the average funeral cost could be over $10,000.

Here is the cost breakdown from NFDA

Average Cost of an Adult Funeral with Viewing and Burial

  • $2,195 – Basic services fee
  • $750 – Embalming
  • $350 – Removal of remains to funeral home
  • $255 – Other preparation of the body
  • $425 – Use of facilities and staff for viewing
  • $500 – Use of facilities and staff for the funeral ceremony
  • $340 – Hearse
  • $150 – Service car
  • $175 – Basic memorial printed package
  • $2,500 – Metal Casket
  • $1,495 – Vault
  • $9,135 – TOTAL

Average Cost of an Adult Funeral with Viewing and Cremation

  • $2,195 – Non-declinable basic services fee
  • $350 – Removal of remains to funeral home
  • $750 – Embalming
  • $255 – Other preparation of the body
  • $425 – Use of facilities and staff for viewing
  • $500 – Use of facilities and staff for the funeral ceremony
  • $150 – Service car
  • $175 – Basic memorial printed package
  • $350 – Cremation fee
  • $1,000 – Cremation Casket
  • $295 – Urn
  • $6,445 – TOTAL

There may be other funeral expenses depending on the funeral home that you choose and the type of casket, headstone, and services you want to be provided.

Prices can significantly differ depending on the location. For example, a chapel service can be expensive, primarily if the service is conducted at a chapel separate from the funeral home.

Funeral Plan Insurance Policies And What They Cover

Are prepaid funeral plans a good idea?

How to prepare for funeral costs? Funeral plan insurance policies or prepaid burial plans allow you to pay for a funeral ahead of time. It covers most of the cost of the funeral, including the funeral director and associated fees.

You have the option to choose the services and select related products. The covered amount depends on how much you pay in premiums and what extras you want to include.

You may pay for a basic pre-arrangement funeral insurance that covers the cost of the funeral director, burial or cremation, and paperwork; other costs, such as flowers and catering, will be left to your family. Some plans will cover the costs of the other extras, but your premium will likely be much higher.

You can pay a lump sum upfront to make your prepaid life insurance policy payments cheaper. If you want to pay your premiums monthly to make payments easier, you will often have to pay more in the long term.

The traditional Funeral Plan includes:

  • Metal Casket
  • Removal of the body to a funeral home within a 30-mile radius
  • Embalming, preparation of the body, and viewing
  • Professional services of a funeral director and staff
  • Visitation before service
  • Funeral service at a funeral chapel or facility of preference
  • Filing of the death certificate and permits
  • Memorial register book and cards
  • Funeral hearse to the local cemetery

How Does Funeral Plan Insurance Policies Work?

You pay a one-time payment or lump sum, or you can pay installments to the funeral director or to the plan provider.

To ensure the fund is there when needed, the fund is invested in life insurance or a trust fund with trustees. The proceeds will cover the cost of the funeral when the policy owner dies. They do this to protect your money until the time you need it and give you the funeral you paid for.

Why Use Funeral Plan Insurance Policies?

Funerals can be expensive, costing several thousand dollars and many people worry that they will be a burden to the family when they die. With funeral plan insurance policies, you arrange and pay for your funeral in advance.

Funeral plan insurance policies ease your family and loved ones’ financial worries.

If you’re the primary breadwinner in the family, the last thing you want to happen when you pass away is to leave your loved ones with the financial burden.

Buying prepaid burial insurance with funeral coverage eases financial worries because you pay for your funeral in advance, and your family will not need to pay for it out of their pockets. At the same time, if someone in your family dies, you won’t have financial worries when dealing with the grief of losing a loved one.

Some funeral plan providers give support as well as financial assistance. Support beyond financial help can include bereavement counseling, and legal assistance such as explaining funeral procedures like obtaining death certificates and helping to organize the details of the funeral.

Funeral Plan Insurance Policies Pros And Cons


  1. Fixed amount – the funeral costs are lock-in in today’s prices and guaranteed not to increase with market conditions or inflation. Your cost is fixed at today’s prices.
  2. Complete control – you have full control over the details of your funeral. You can choose the type of casket, burial plot, headstone floral arrangement, facilities, clergy, and the order of service you like.
  3. Peace of mind – a prepaid life insurance plan can provide peace of mind for you and your family, knowing your funeral cost is already paid. A prepaid funeral alleviates the stress during the time of grief since your funeral is already paid, and your final wishes are carried out. The plan gives detailed instructions about your last wishes at a stressful time.
  4. You can get what you want – a funeral plan ensures you get what you want, especially the cemetery plot. The location you want today may not be available five or ten years from now. Buying in advance ensures you get the location you want.
  5. Lower cost – arranging and paying for a funeral in advance can result in a lower price versus waiting until death when family emotions may influence financial decisions.
  6. Beneficial when you need to qualify for Medicaid – the funeral plan can be helpful when you need to be eligible for government services or long-term nursing home care. That’s because funeral expense paid in advance doesn’t count against your estate when the government determines your financial eligibility.


  1. The number one risk of the funeral plan is the incidents where the funeral service directors go bankrupt or embezzle escrow funds allocated to pay for funerals.
  2. Funeral plan insurance policies can be expensive and require an upfront cash outlay. If you decide to pay installments rather than a one-time payment, you still need to give a large, non-refundable deposit before making an installment payment.
  3. The funeral provider you contract with may no longer be in business when you die. You can diminish the risk by ensuring your agreement allows you to transfer the contract to other funeral providers.
  4. You can’t change or alter your funeral plan if you change your mind later. Making any changes could affect the original price and may require a new contract.
  5. You may be unable to control some of your assets when entering a funeral trust. You cannot access it immediately if you need cash for an emergency.
  6. Funeral plan contracts may require some goods to be delivered to you in advance. Big items such as caskets will need to be put in a warehouse. They may be subject to deterioration over time.
  7. Market conditions may change with time. New and better options may become available in the future. It may even be more economical than what you have selected. It is particularly true for items becoming easier and more affordable online.
  8. Another problem would be if you move and want to be buried somewhere else, or you want to go to another funeral home. You will need to know if the plan allows being transferred to another funeral home or if you can get a full refund. Most of the time, you will have to pay an administrative or penalty fee to cancel or transfer a funeral contract.
  9. Some contracts don’t deliver as promised. Some issues arose when installment payments were not completed before you died or your fund was put in an interest-bearing account that did not mature.
  10. Some funeral plans lock you in a specific funeral home or area. Some plans require a particular cemetery or funeral home to be utilized per agreement. If you relocated or the funeral provider went out of business, the funeral plan is no longer valid; it will not cover all the funeral costs anymore. This can confuse you, and you may not be able to honor your final wishes.

Questions To Ask The Funeral Provider

Before signing any preneed funeral contract or paying for anything in advance, you should ask the funeral plan provider the following questions:

  • What are you paying for? Are you purchasing only merchandise like casket and vaults, or are you buying funeral services too?
  • Who will supply the services and merchandise you are purchasing?
  • Can you choose the funeral home or the funeral director?
  • What happens if the funeral home goes out of business?
  • Can the funeral director give you a different funeral than your chosen one?
  • Can you cancel the contract and be able to get a full refund if you change your mind? Are there any cancellation charges?
  • Can you cancel the funeral plan if something happens? For example, you get a plan for your spouse’s funeral but become separated or divorced.
  • Can you transfer your funeral plans if you move to a different area or die away from home?
  • Is the contract portable, transferable, and refundable without penalty?
  • Are there other expenses for the funeral, and what happens if there are?
  • What if there are outstanding installment payments at death?
  • Can you change some details of your funeral plan at a later date?
  • How does the funeral director know about the plan holder’s death?

Communicating With Your Family

If you set up a funeral plan insurance policy to pay for your funeral, tell your family about the arrangements you’ve made.

Inform them about the name of the funeral director and your chosen funeral home. Make sure your family knows where the paperwork, insurance policy, and agreement with the funeral home are located. Communicating with your family makes it easier for them to handle your funeral arrangements when you pass away.

If you take out a funeral plan, you should receive written confirmation of your coverage. Keep this in a safe place with your other necessary documents. Ensure your family knows your funeral is already paid and inform them about the details.

What Is Funeral Insurance?

If you do not have funds at the end of your life to cover your final expenses, then a funeral insurance policy, cremation insurance, final expense, or burial insurance might be an ideal solution.

Is burial insurance worth it? Even if you have other traditional insurance to leave behind enough money, you may not want your estate to cover your final expenses. A burial insurance plan is one of the best ways to ensure your full estate will be available to your family.

Funeral insurance is also called burial insurance, and final expense insurance is a specific policy designed to help you cover your final expenses.

These policies have a small face amount, typically $2,000 to $25,000 (although some insurance companies offer up to $50,000). The lower coverage amount is specifically designed to cover funeral and other end-of-life expenses. These policies are not intended to provide supplemental income to the family-like regular life insurance.

What Are The Two Basic Options When Choosing Funeral Insurance?

There are two types of burial insurance, namely:

Simplified issue funeral insurance is a whole life insurance policy that has been made easy and streamlined to apply. The application, underwriting, and approval process are quick and hassle-free; you only need to answer a few health questions.

The insurance company underwrites you based on your answers to various health questions regarding your medical history. This is the best funeral insurance for parents because it doesn’t have a waiting period.

Guaranteed or guaranteed acceptance funeral insurance assures everyone will be accepted regardless of age or medical history.

You are not even required to answer health questions. Since the insurance company assumes more risk in insuring you, your premiums may be higher than other policies.

All guaranteed issue policies have a graded death benefit.

The full death benefit will not be available to your burial insurance beneficiary until the policy has been in force for two to three years. The waiting period varies by the insurance carrier, so be sure to look out for this important detail. Should you die before the waiting period, your beneficiaries will only receive the premiums paid into the policy plus interest.

After the graded period has passed, your family will receive the full life insurance benefit.

Who Should Consider A Funeral Insurance Policy?

Your funeral insurance needs to depend on your financial situation.

You may need to consider your financial status and your family’s budget. You might need to consider a funeral insurance policy if:

  • You have no life insurance coverage
  • You want a separate insurance policy to cover your final expenses
  • You have no other way to pay for a funeral
  • You have limited savings and don’t have enough to pay for your funeral expenses.
  • You want to cover your entire family.

Pros And Cons Of Funeral Insurance


  • Funeral insurance is easy to set up. The application is easy, and acceptance is guaranteed if you pass the eligibility requirements by the underwriter. You can pay periodically, monthly, quarterly, semi-annually, and annually; there’s no need for an immediate lump sum payment to get covered.
  • There is flexibility in the use of the funds. The death benefit is paid in cash the funds can be used in any way that is necessary at the time.
  • The death benefit is paid regardless of how long you held your policy.
  • A graded benefit pays out 100% for the first 2-3 years should you die in an accident. Accidental death is covered immediately and usually results in a higher claimable amount.
  • Funeral insurance allows the policyholder to plan for their funeral without choosing the exact suppliers and arrangements.


  • If you live long enough, there is a chance that you may end up paying more for the policy than the cost of a funeral. This typically occurs after you hold your policy for many years.
  • If you stop paying your premium for some time, your policy will be canceled, and your premiums cannot be refunded.
  • Fixed premium policies generally are more expensive.

Alternatives To A Funeral Plan Or Funeral Insurance

  1. Set money aside in a savings or money market account. You can leave the money in a bank account and let your solicitor and family member know you have set aside funds for your funeral. Your survivors will need immediate access to these funds following your death. Make arrangements to open the account with the bank so the person you trust can withdraw the funds.
  2. Whoever organized your funeral can claim back funeral expenses from your estate.
  3. Get a permanent life insurance or annuity contract and name the funeral home as the beneficiary (we can help you with this).
  4. Payable-On-Death Totten Trust, you can set this account at a financial institution such as a bank. You can put the funeral home as the beneficiary (although it is not required). The funds will be designated for funeral expenses and transfers without probate.
  5. Public assistance. Federal, state, and local programs can help shoulder the cost of funeral expenses. Social Security provides a one-time death benefit of $255. The Veteran Administration also offers funeral benefits for veterans. Many counties have indigent programs to help people with limited resources to cover funeral expenses.

A funeral plan or insurance is essential to protect your family financially during a tough time. While your funeral coverage can never eliminate the pain of your loss, it can make the grieving period much easier.

How To Find The Best Premium Rates On Final Expense Insurance

You must work with an independent insurance agency when seeking the best premium rates on final expense insurance coverage from any carrier. Doing so will enable you to look at policies and prices from multiple insurance companies to determine which will fit your needs and budget.

If you are interested in comparing life insurance policies with Gerber Life,  Globe Life, and AARP New York Life,  we have reviews to explore before you buy.

When you are ready to compare life insurance coverage and the premiums available, Funeral Funds can help you. We work with much top-rated final expense life insurance no exam companies in the market today. We can supply you with all the essential information you need to make a well-informed insurance buying decision.

If, after checking our website, you still have any questions regarding final expense insurance, please call us at (888) 862-9456 or fill in the instant final expense quotes on the left side of your screen to view your options.

What Kind Of Burial Policies And Final Expense Policies Should I Avoid?

TV AND MAGAZINE ADVERTISEMENTS – Most burial policies or final expense policies you see advertised on television or in magazines are sold as “the no-brainer way” to shop for this protection.

In reality, most of these policies rely on you having NO BRAIN to purchase them.

Everyone is eligible for immediate coverage and better pricing allowed by these heavily advertised policies that cost an arm and leg.

To make a long story short, it is better to shop for burial policies with a specialist in burial insurance, like, than to sign up with a company that spends ba-zillions of dollars each month advertising on television and in magazines.

Increasing Price Policies

If you are looking for burial insurance for seniors over 70, beware of those TV and magazine final expense policies because they may increase in price every five years or have a two-year waiting period before your benefits kick in! What in tarnation!?!

These policies aren’t all they’re cracked up to be, and you often end up at the short end of the stick by purchasing burial insurance this way.

These tricky television magazine snake oil salesmen lure you in with an attractive rate, only to have the cost of your insurance increase every five years until you cannot afford the premiums, then you must cancel your policy.

What happens after you cancel the policy?

You’ll die and have wasted all that money because you bought a policy that increases in price as you get older. These policies just don’t cut the mustard for most folks!

Avoid policies that increase in price yearly or end at a certain age. You don’t want your family to get hung out to dry when they need this coverage the most.

Why choose Funeral Funds for my burial policy?

Most life insurance agents are fine, respectable people.

There are, however, the classic “snake oil” life insurance agents who will sell you the easiest and most expensive policy possible.

The guaranteed issue folks claim you don’t even need to talk to an agent (but you will need to wait 2 years for your coverage to begin…even if you’re healthy). Answering a few health questions will often get you immediate coverage and MUCH better rates.

Avoid these people at all costs!

For the rest of the life insurance agents, who are fine respectable people, are most often generalists.

They deal with all kinds of life insurance policies.

They are Jack of all trades and Masters of none.

They are nice people but are not the logical choice if you want the best pricing and a burial insurance policy with no waiting period.

We work with 20+ final expense companies, so we can get you qualified for the best-priced plan to get folks like you immediate coverage when possible.

For the average burial insurance final expense insurance shopper, we must admit that all the companies and options will often confuse you more than a woodpecker in a concrete forest.

How Can Funeral Funds Help Me?

In reality, inexperienced and less knowledgeable insurance agents will cost you loads of money by selling you overpriced burial and final expense policies.

Affordable burial insurance with no waiting period or final expense policy doesn’t have to cost an arm and a leg.

Our job at Funeral Funds is to be the most knowledgeable burial insurance expert available. By doing so, we can knock it out of the park and get you the most accurate quote and affordable rates.

Once we know more about your age and health history, we can accurately give you burial insurance quotes from the final expense companies that best fit you.

Working with an independent brokerage like Funeral Funds is always in your best interest.

With access to all the best final expense life insurance companies, we will help you understand your best options, given your current age, health, and financial situation.

Additional Questions & Answers On Funeral Insurance Plan

What is funeral insurance plan?

A funeral insurance plan is also called burial insurance, funeral coverage, funeral expense insurance, or final expense insurance. It is a life insurance policy that can be used to pay for the burial expenses of the insured person in the event of his death. The cost of a funeral can amount to many thousands, and this type of plan may help you avoid passing on your debts to your loved ones after death.

Is funeral insurance the same as life insurance?

Funeral insurance is a whole life insurance policy designed to pay funeral expenses. It is not the same as regular life insurance because it only offers a small death benefit to cover final expenses.

What is funeral insurance policy?

A funeral insurance policy is a life insurance policy that provides coverage for the burial costs of the insured in the event of death. It is also a final expense, burial, or funeral coverage. A basic plan will provide lifetime coverage, and monthly premiums will not increase.

Is there an age limit for funeral plans?

Funeral plan insurance is offered to people 50 to 85 years old.

What are the benefits of funeral insurance?

Funeral insurance can provide peace of mind for your family during bereavement by covering the cost of final expenses such as burial, cremation, or memorial service. With this plan in place, your family won’t have to make the difficult decision of whether to pay for a funeral or handle other financial obligations.

Do life insurance policies cover funeral costs?

Yes, funeral insurance is a type of whole life insurance policy that covers burial costs in the event of death. It is also a great coverage for final expenses such as cremation or memorial service, burial costs, and other related final expenses.

What are the advantages of funeral insurance plan?

Funeral benefits can help pay for your family’s final expenses so they won’t be burdened with financial stress after you die.

How much does funeral insurance plan cost?

Funeral insurance plans are typically affordable for everyone. The monthly premiums will depend on your current age, health condition, and the desired coverage amount.

Why do I need a funeral plan?

If you want to protect your family from financial ruin after death, funeral insurance can provide peace of mind for your family.

How is the premium of a funeral plan calculated?

Funeral benefit plans are priced based on current health conditions and the desired coverage. It also depends on the insured person’s age at the purchase time.

What happens if you don’t have funeral insurance?

If you don’t have funeral insurance in place, your family will have to pay the final expenses out of their own pockets, so it is highly unlikely they can afford to do so. You may also pass on any debts or unpaid taxes to them after death which can cause more financial burden for them.

Can I purchase funeral insurance for my parents?

You can purchase a plan for your parents as long as they are 50 years old and above.

Is there such a thing as funeral insurance?

Yes, it is a type of life insurance that covers final expenses. It is also called burial, cremation, or final expense life insurance.

Who is the best funeral plan provider?

Funeral plan providers offer affordable plans with various options, so you can choose one that fits your preferences. Check out our Top 10 final expense companies.

What happens if you have funeral insurance?

If the insured person dies, the beneficiary will receive an amount to help cover the final expenses. This type of life insurance is also known as burial, cremation, or final expense life insurance.

What are funeral benefits?

Funeral benefits are the amount of money set for the family to help them pay for final expenses, including cremation, burial cost, and other related final expenses.

What is the cheapest funeral plan?

The plan’s monthly premiums depend on your current age, health condition, current premium rates in the market, and desired coverage amount.

What is a good funeral insurance plan?

A good funeral plan is ideal for those who want to protect their loved ones from the emotional and financial stress that comes after death. Funeral plans are available for people between the ages of 50 and 85.

Is there a minimum age requirement?

The plan can be issued to anyone 50 years old up to 85 years old.

How do I find a funeral plan??

The best way to find a funeral plan is to contact an independent insurance agency specializing in final expense insurance policies.

How is a funeral policy assessed?

The monthly premium of a funeral plan will vary depending on the age of the insured person, health condition, desired coverage amount, and location.

What does a funeral policy cover?

Funeral plans typically cover final expenses such as cremation, burial cost, and other related services.

Can you pay monthly for a funeral plan?

Yes, you can pay monthly. Monthly payment options are available.

How long does it take for a funeral policy to pay out?

If the insured person dies, the beneficiary will receive an amount to help cover the final expenses. Paying the death benefit depends on how fast you submit the claim and supporting documents. Generally, claims are released within 30-60 days.

Can I take out a funeral plan for my mother?

Yes, you can take out a funeral plan for your mother if she is over 50, and you can show insurable interest and consent.

What age can you buy a funeral plan?

Funeral plans are available for people between the ages of 50 and 85.

Who can purchase a funeral plan?

Any person over the age of 50 who wants to cover final expenses.

What type of funerals does funeral insurance cover?

Funeral plans typically cover cremation, burial costs, and other related services.

Do funeral policies pay out for suicide?

Yes, funeral policies will pay out for suicide if it happens after two years of policy issuance.

What’s the difference between a funeral plan and prepaid insurance?

The main difference is that prepaid funerals are set to provide an option for people who want to pay ahead of time and choose their service options with the funeral home, whereas funeral insurance is designed to cover final expenses to be paid by the beneficiary.

Why do I need a funeral plan?

Funeral plans are affordable, flexible, and available for anyone between 50 and 85 who wants to protect their loved ones from emotional and financial stress.

Is a funeral plan a good idea?

Funeral plans are designed for anyone 50 or up to 85.

What are the criteria for a funeral plan for others?

The applicant must be over the age of 50, they must provide insurable interest and consent from a spouse if married.

How do I claim a funeral policy?

You contact the insurance company to file a funeral claim with the insurance company. Usually, it takes 30-60 days for the death benefit to be paid out.

What documents are needed to claim funeral policy?

To claim the funeral policy, you must provide an original death certificate, marriage certificate if applicable, and copies of bank statements.

Can I cancel a funeral plan?

Yes, you can cancel the final expense insurance anytime for any reason. You must provide 30 days’ notice by sending in a cancellation letter via registered mail.

Can I get funeral cover for my parents?

Yes, you can get funeral cover for your parents, provided they can show consent and insurable interest.

Which funeral cover does not have a waiting period?

Funeral insurance that asks health questions offers first-day coverage insurance with no waiting period.

How do I get information on buying a funeral plan?

You need to contact an independent insurance agency specializing in final expense insurance policies for all the details, comparisons, and costs of final expense funeral plans.


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