The Importance of Burial Insurance

You need to understand the importance of burial insurance so you can leave your family with peace of mind knowing they will not suffer financially after you pass on. Burial insurance guards against financial hardships by providing cash for all costs associated with the funeral and burial.

Most families will have difficulty finding burial and funeral funds quickly without burial insurance. Burial insurance can save families from withdrawing from their savings or selling assets to come up with the necessary funds to bury a loved one.

Burial insurance is critical today since more people are entering their elderly years and approaching retirement with insufficient funds. The need for burial insurance is more crucial now than ever. If you’re wondering, is burial insurance worth it? We will help shed light. This article aims to shed some light on the significant benefits of burial insurance and why we need some.


What Is Burial Insurance?

Burial insurance is also called funeral, cremation, or final expense insurance.

Burial insurance is a whole life insurance policy designed to cover the cost of funeral service, burial, and other outstanding bills.

Burial insurance is a permanent plan that is designed to last a lifetime. It is NOT a term life insurance policy or a policy that EXPIRES at age 80. Be careful because some insurance companies like AARP and Globe Life will try to sell you term life insurance plans, but they market it as burial insurance.

The burial insurance company will issue a tax-free check to your assigned beneficiary when you die. The death benefit payout money can be used however your family sees fit. They can use the money to pay for your final expenses. If there is anything left, your family can keep it.

Benefits of Burial Insurance:

  • It never expires due to age. They last a lifetime.
  • Monthly premiums are fixed. They will never increase for any reason
  • The death benefit is level. It is guaranteed never to decrease
  • No medical exam is required to apply for coverage
  • Small face value options

Who Can Apply For Burial Insurance Policy?

Anyone who is 0-89 can apply for burial insurance. Few factors determine burial insurance eligibility, such as:

  • Age: Some plans are not available to all ages.
  • State of Residence: Some burial insurance plans are not approved in every state.
  • Health: You must qualify based on health. However, some plans have no questions at all.

The most common age of availability is 50-85. Your general health, your state of residence, and if  you are younger than 50 or older than 85 will determine your options

Who Needs Burial Insurance?

People in these situations need burial insurance:

  1. Those who have no life insurance coverage.
  2. Those whose savings are not enough to cover the cost of a funeral.
  3. Those whose family and friends do not have the financial capacity to cover the cost of funeral and burial expenses.
  4. Those who have outstanding debt.
  5. Those who don’t want to burden their family when they pass away.
  6. Those who want a separate insurance policy to cover their final expenses.
  7. Those who are paying off medical bills or debts
  8. Those who have cash but don’t want to use it for final expenses.
  9. Those who want to leave a charitable donation to an organization or person important to them.

Burial Insurance Is Unique In Three Different Ways:

#1 – Relaxed underwriting

One of the unique characteristics of burial insurance is relaxed underwriting. Most of the health conditions accepted by burial insurance would get auto declined for any traditional life insurance policies.

Relaxed underwriting enables most seniors with high-risk conditions to easily qualify for a policy.

#2 – No Health questions policies

Even though burial insurance has relaxed underwriting, some health conditions are so risky they are classified as uninsurable. There is a guaranteed issue policy with no exam or health questions for these high-risk health conditions.

Applicants are guaranteed acceptance regardless of medical conditions!

#3 – Low face value options

Some burial insurance companies will let you purchase as little as $1,000 in coverage; no other type of life insurance will let you buy such a small amount of protection.

Most companies offer face value options from $2,000-$25,000. Some carriers go lower, and some go higher, but you have the freedom to buy what you need.

Different Types Of Burial Insurance

You can either apply for a non-medical burial insurance plan that has a brief medical and prescription records check, or you can apply for a burial insurance plan that asks no health questions.

A policy with no health questions is called guaranteed acceptance life insurance. Non-medical exam burial insurance policies fall into three different plans. Your health will determine which plan you will qualify for.

Every insurance carrier will ask different health questions and electronically review your prescription history to verify your health status.

Here are the three plans for underwritten burial insurance:

Level Benefit

If you answer no to all the health questions, you will easily qualify for a level benefit plan.

You are covered immediately upon approval and first payment, and your beneficiary will receive the full death benefit if you pass away. There will be no waiting period if you qualify.

A level death benefit is the best possible rating you can receive. You will be able to access the insurer’s lowest possible rate. “Preferred” is the other term for the best rating plan.

Graded Benefit

A graded benefit plan is a medium option where the insurer views your health profile as riskier.

You would get this policy if you answered yes to some of the health questions. You will be charged anywhere from 15-40% more for your policy. Graded plans provide partial protection for the first two policy years.

For example, Your death benefit amount is $10,000, and many insurance providers pay 30% of the benefit if you die in the first year, 70% in the second year, and 100% after two years. Each insurance company has its payout schedules; it is important to read the fine print to understand your policy details before purchasing a policy.


A modified plan with underwriting is designed for high-risk applicants, and the company charges 15-50% more on your premiums. They will offer you a modified plan if you answer yes to the health conditions under the “modified” part of the application. Events like stroke, heart attacks, or cancer within the last year will put you in modified benefit.

There is a two-year waiting period. If you pass away during this time, the insurance company will not pay out the full benefit of your policy. Instead, they will return 110% of your money. Modified plans return premiums plus 10% interest during the first two years. However, they would pay out the full death benefit if you die from an accident.

Guaranteed Acceptance Burial Insurance

Even though burial insurance has a lenient underwriting, some medical conditions are so risky that they are considered uninsurable for the first two years. Guaranteed acceptance is the only option. If no such plan is available, people with these health conditions will not get coverage.

These plans have no medical exam and no health questions. Your approval is guaranteed if you satisfy the age requirement.

Guaranteed acceptance has a two-year waiting period. If you die during the first two years, the insurer will only refund the premiums paid plus 7-10% interest. Since the insurance carrier is taking more risk, they charge more to compensate for the increased risk.

A Guaranteed acceptance policy is your only option if you have any of the following health issues:

  • Alzheimer’s or Dementia
  • Currently, in a hospital or nursing facility
  • Dialysis
  • HIV or AIDS
  • Hospice Care
  • Terminal Illness
  • Recommended to have an organ transplant

What Are The Common Burial Insurance Underwriting Questions?

These are the most common questions asked when applying for burial insurance:

  1. Are you currently confined to a bed, assisted living facility, or nursing home?
  2. Are you dependent on a wheelchair?
  3. Are you terminally ill?
  4. Are you using oxygen to assist your breathing?
  5. Have you been treated for a heart attack or stroke in the last 12-24 months?
  6. Do you have any aneurysm that has not yet been repaired?
  7. Do you have cardiomyopathy or congestive heart failure?
  8. Are you currently receiving dialysis treatment?
  9. Have you been diagnosed with kidney disease?
  10. Do you have liver disease?
  11. Are you diabetic? Are you Insulin-dependent or on an oral medication?
  12. Have you been treated for any type of cancer in the last 12-24 months?
  13. Do you have AIDS or HIV?
  14. Have you ever been diagnosed with dementia or Alzheimer’s disease?
  15. Have you been convicted of a felony?

What Is The Cost Of Burial Insurance?

Generally, the younger you are, the less burial insurance will cost. Different factors such as determine the cost of burial insurance

  • Age
  • Gender
  • Face Amount
  • Health history
  • State of residence
  • Tobacco usage

The average monthly premium for a $10,000 burial insurance is about $50. The amount might be higher or lower depending on the different factors.

Fill out our instant BURIAL INSURANCE QUOTE form on this page to get a custom quote.

Why Is Burial Insurance Important?

  1. Burial insurance is more affordable compared with pre-paid burial plans. You will only need to make a low monthly payment for life insurance coverage.
  2. Most people will qualify for coverage because medical exams are not required. You will only need to answer a few health questions.
  3. Burial insurance allows you to select a beneficiary. You can choose your partner or a relative as your beneficiary to ensure your funeral wishes are carried out and funds are properly distributed.
  4. Burial insurance has a fixed premium guaranteed to never increase due to health or advancing years. The death benefit is level and guaranteed never to decrease as long as premiums are paid on time.
  5. Burial insurance covers all costs related to your funeral and burial or cremation. Your plan will help your family pay for the coffin, memorial service, headstone, and even small details like the flowers.
  6. While a burial insurance policy is designed to help pay for the final expenses, any leftover money from the payout can also be used to help take care of any debts, such as car loans and credit card debt that you may leave behind.
  7. Burial insurance is portable. The insurance payout can be used at any location since there is no contract with a specific funeral home. You can use the payout even if you moved to a new location or have a new funeral preference.
  8. You have full ownership of your policy. You choose the beneficiary of your policy. You are not obliged to make the funeral home your beneficiary. If you find a cheaper funeral home than the originally planned one, your beneficiary will get the difference. Your family can use the death benefit as they please.
  9. You can borrow against the tax-deferred cash value of your burial insurance. Aside from preparing for your family’s financial future, you also have an available line of credit in an emergency.
  10. Burial insurance is flexible. Its flexibility extends to your choice of funeral service providers. You can allocate funds without being tied to a particular funeral home. Burial insurance leaves your options open, which is a great benefit given the time that will pass between choosing a provider and using the policy.

Intangible Benefits Of Burial Insurance

The reasons for choosing burial insurance are not only financial. Other things like time and peace of mind play a big role in saying that the plan is right for you.

Ease the financial burden on your family. Planning and paying for a funeral is a great expression of love for the family. When you purchase your parents’ burial insurance, you are ensuring that your loved one can grieve without worrying about the funeral and burial costs.

Buying burial insurance allows you to plan. Making financial decisions about your death is not easy. Purchasing funeral insurance for parents in advance gives you the time to plan and find different options suited to your needs.

Be at peace knowing your funeral will represent your personality. When you buy burial insurance, you can plan to make your ceremony reflect who you are. You can discuss your wishes with your beneficiary so your service will be what you want.

Your family will have instant funds to use for your final expenses. Burial insurance doesn’t go to probate, and your family will have the funds to pay for your funeral. Burial insurance makes money immediately available, so your loved ones need not pay your final expenses out of their pockets.

What You Should Know About Prepaid Funeral Plans Offered By Funeral Homes

  • Your funeral service can be planned, letting your family know what you want.
  • You can pay the preneed funeral insurance upfront.
  • A prepaid funeral plan is an exclusive contract with a specific funeral home. You are limited to the service area covered by the company.
  • If you moved away from the company’s service area or your plans changed, you might not be able to use your prepaid plan because you are no longer covered.
  • A prepaid plan may not cover future expenses. Review your prepaid contract before signing them. You can even hire a lawyer to help you.
  • Due to market fluctuations, the goods and services you selected on your prepaid plan may not be fixed. Ask if the prices are guaranteed in the future. If not, your family will have to pay for the difference.
  • Your family needs to pay the taxes on interest or income that accumulates on invested funds.
  • Fun funeral homes commonly mishandle or mismanage the money you pay them for your prepaid plan. Be sure to trust an established company before purchasing a prepaid plan.
  • You’re not obligated to purchase a funeral package that includes services and goods you don’t need. You are not forced to buy everything through your prepaid provider. Embalming, coffin, and memorial service can be purchased separately if you find a cheaper price through another vendor.
  • According to the Federal Trade Commission’s Funeral Rule, you have several rights and disclosures. Some aspects of your prepaid funeral plan are within the state jurisdiction, and the funeral rule may not apply to you. Your protection varies from state to state.
  • The Funeral Rule states that the funeral home should provide you with an itemized list of services.
  • The Federal Trade Commission recommends that you shop and compare prices from at least two funeral homes before buying a prepaid funeral plan.

How To Apply For Burial Insurance?

Step 1: Look for an Independent Life Insurance Agency

Look for an independent life insurance agency, like Funeral Funds, on the internet. Working with an independent life insurance agent is crucial in the application process. An Independent agency can shop for different insurance carriers depending on the underwriting requirements, and they can find the most affordable plan.

Step 2: Select your burial insurance plan from an A-rated Company

You can buy senior life insurance from different insurance companies. Choose an A-rated or better company. A good financial rating indicates that the company is financially stable and has a history of paying beneficiaries on time.

Step 3: Answer the health questionnaire and complete the phone interview

Fill out the burial insurance application. Most burial insurance carriers require a phone interview to ensure all the application questions are filled, and your agent completes all the details.

The insurance provider will check your prescription history and your medical background through the MIB. This is to verify your answers to health questions and your medical records are the same.

The phone interview with the underwriter usually takes about 15 minutes. You will know if you are approved or declined after the call.

Step 4: Select your payment method

You can pay your burial insurance in different ways:

  1. Monthly
  2. Quarterly
  3. Semi-annual
  4. Annual
  5. Credit or Debit card
  6. Monthly EFT or direct withdrawal from your bank (this is the preferred method)

Paying your first premium on the same day you apply is not required. You can choose any day. You can even schedule it when you receive your social security benefits. You can select the future date of your first premium for up to 30 days.

Step 5: Receive your policy

Insurance providers are prompt in delivering burial insurance policies. The main difference between term life insurance and burial insurance is that most burial insurance carriers send the policy directly to your home instead of letting your agent deliver your policy.

Step 6: Explain your final wishes to your family

Communicating your plans to your beneficiary is essential. Let your family know about your life insurance and where it is located. Most burial insurance providers offer free planning guides and request booklets that allow you to record the details of your end-of-life plan.

Different Ways To Complete And Submit Your Burial Insurance Application

The application process varies by company, but it can be completed in different ways:

Voice Signature: Complete your application over the phone. You fill out the application with your agent during the phone interview. It will only take a few minutes to complete.

You don’t have to sign any paperwork. You will know the result after giving your voice signature.

Email Signature: An email signature application lets your agent collect all your information to fill out the application. Then you will receive an email from the insurance company to sign.

Sign the email via your tablet, phone, laptop, or PC. The signed application will then go to underwriting. You can get an instant decision or wait 1-4 days to get your result.

Paper Application: Traditional paper application is also available. You can supply your agent with all the information for him to fill out. Then he will send the application to your home to sign. Send the application to the company after signing the form. You will get the decision after 1-4 days.

How To Find The Best Burial Insurance Policy

The best burial insurance policy for you is the affordable one that protects you as soon as possible.

The process of finding the best and most affordable policy is simple. You need the help of a highly experienced independent agent with access to many insurance companies. They will shop and compare prices to determine the insurer that will offer you the best deal.

Using an independent agency like the Funeral Fund will ensure the best pricing and coverage for your age and health.

Call us at (888)862-9456 if you want to protect your family’s future by investing in a burial insurance policy. We will help you find the best plan to meet your needs and budget.


Need burial insurance? Instead of wasting hours talking to different agents, and answering the same questions repeatedly, let us do the work for you to find affordable burial insurance.

Fill out the instant QUOTE form on this page, and we will give you a final expense insurance quote with the best rates available.

Funeral Funds is an independent insurance agency that can shop your application to many companies available. This way, you can be sure that you will get the best carrier that favors your age and health.

We work with the top-rated life insurance companies in the United States, many of which offer immediate coverage at the lowest rates.

If you need help finding burial life insurance, please don’t hesitate to contact us at (888) 862-9456.

Additional Questions & Answers On Importance Of Burial Insurance

What is burial insurance?

Burial insurance is a type of life insurance that pays out a death benefit to your loved ones when you die. The death benefit can help pay for your funeral and other final expenses.

Why is burial insurance important?

Burial insurance is important because it can help your loved ones cover the costs of your funeral and other final expenses. If you don’t have life insurance, your loved ones may have to pay for your funeral and other expenses.

How can I qualify for burial insurance?

You must be 18 years old and a U.S. citizen or legal resident to qualify for burial insurance. You will also need to have a medical exam to determine your insurability.

What are the benefits of burial insurance?

Burial insurance benefits include peace of mind for you and your loved ones. Your policy will pay out a death benefit to your beneficiaries when you die, which can help them cover the costs of your funeral and other final expenses.

Who can apply for burial insurance?

Any U.S. citizen or legal resident at least 18 years old can apply for burial insurance.

Who needs burial insurance?

Anyone who wants to ensure that their loved ones are taken care of financially in the event of their death may want to consider buying burial insurance. This type of insurance can be especially important for people who do not have life insurance or whose life insurance does not cover the costs of their final expenses.

What are the different types of burial insurance?

There are main types of burial insurance: first-day coverage plan, graded benefit plan, and guaranteed issue life insurance.

What does burial insurance cover?

Burial insurance typically covers the costs of your funeral and other final expenses, such as transportation and cemetery costs.

Why is burial insurance important?

Burial insurance is important because it can help your loved ones cover the costs of your funeral and other final expenses. If you don’t have life insurance, your loved ones may have to pay for your funeral and other expenses.

How much does burial insurance cost?

Your burial insurance cost will depend on your age, gender, location, coverage amount, and health.

Can I get burial insurance on my parents?

Yes, you can get burial insurance on your parents. You only need their consent to be able to do so.

Do I need a medical exam for burial insurance?

No, you don’t need a medical exam for burial insurance.

Can I get burial insurance if I have a pre-existing condition?

Yes, you can get burial insurance if you have a pre-existing condition.

What is the difference between burial insurance and life insurance?

The main difference between burial insurance and life insurance is that burial insurance is specifically designed to cover the costs of your funeral and other final expenses, while life insurance can be used for a variety of purposes.

How much burial insurance do I need?

Your age, health, coverage needs, and budget will determine how much burial insurance you need.

How does burial insurance work?

Burial insurance works by you paying premiums to keep the policy active. If you die while the policy is in force, the death benefit will be paid out to your beneficiaries.

What are the advantages of burial insurance?

Some of the advantages of burial insurance include the following:

  • It can be used to cover the costs of your funeral and other final expenses.
  • It can give you and your loved one peace of mind.
  • It can be an affordable way to provide for your loved ones after death.

Can I have two burial insurance policies?

Yes, you can have two burial insurance policies as long as you can afford the premiums.

Is burial insurance worth it?

Yes, burial insurance can be worth it if you want to ensure that your loved ones are taken care of financially during your death.

Can you cash out a burial policy?

Yes, you can cash out a burial policy. However, you will likely only receive a portion of the death benefit if you do so.

Does burial insurance have cash value?

Yes, burial insurance policies have cash value.

What happens if I cancel my burial insurance policy?

If you cancel your burial insurance policy, you will no longer have coverage and will not be able to receive the death benefit.

What is the main purpose of burial insurance?

Burial insurance is designed to cover the costs of your funeral and other final expenses.

What is the need and importance of insurance?

There are many reasons why insurance is important. Some of the most common reasons include the following:

  • Insurance can help protect you and your family from financial ruin in an unexpected death, illness, or accident.
  • Insurance can help you afford medical care and other necessary expenses in an illness or accident.

Do I get money back if I cancel my life insurance?

You will not receive any money back if you cancel your life insurance policy.

How do you cash in life insurance after a death?

If you have a life insurance policy, the death benefit will be paid out to your beneficiaries after your death.

Is burial insurance taxable?

No, burial insurance is not taxable.

Do you need life insurance after age 65?

Yes, you still need life insurance after age 65. This is because the death benefit can help cover the costs of your funeral and other final expenses.

Can someone take out a life insurance policy on me without my knowledge?

No, someone cannot take out a life insurance policy on you without your knowledge.

What reasons will life insurance not pay?

A few reasons why life insurance may not pay out the death benefit. Some of the most common reasons include suicide, fraud, and non-payment of premiums.

How long after someone dies can you claim life insurance?

You can usually claim life insurance within 30 days after the policyholder’s death.

Does burial insurance pay for funerals?

Yes, burial insurance can help pay for the costs of your funeral.

Who gets a life insurance payout?

The beneficiaries of a life insurance policy will receive the death benefit payout.

What is the best burial insurance for seniors?

The best burial insurance for seniors will depend on their age, health, coverage needs, and budget.

What is the best way to compare burial insurance policies?

The best way to compare burial insurance is to work with a qualified insurance agent who can help you compare policies and find the best coverage for your needs.

Is burial insurance a good idea?

Yes, burial insurance can be a good idea to ensure that your loved ones are taken care of financially during your death.


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