Best Burial Insurance Plans & Reviews

Funeral & Burial Insurance Plans

Avoid Your Family Falling Into Debt With High-Quality Funeral Insurance

As we age, it is essential to start thinking ahead to our eventual demise. These thoughts are in no way morbid but are incredibly practical. You don’t want to get caught by surprise with a sudden passing and put your family in a tight financial situation. Funerals are only increasing in their costs and paying for them after you pass will be very difficult for your family to manage.

That’s why it is critical to purchase a funeral insurance policy as soon as possible. This type of insurance is designed to protect your loved ones after you pass and will make it easier for them to pay for your burial and funeral expenses. Just as importantly, it can prevent them from falling into debt, a scenario that will make their life that much more difficult while they are mourning for you.

There are many types of these insurance policies available at prices that are designed to be affordable for people like you who need them. They are also tweaked to suit the needs of a multitude of people and cover a variety of different costs, far beyond what you may expect. So please read on to learn more about the benefits of this type of insurance and how it can keep your family safe from debt.

Did You Know...?

• In 2017, the average cost of a funeral is almost $10,000 up over 30% since 2004
• In 2017, there were 19,322 funeral homes in the U.S.
• By 2017 it is projected that 51.6% of funerals will involve a cremation.

Due to the increased expense associated with a burial the preference for cremation has continually risen. Consequently The NFDA projects that the rate of cremation will continue to exceed that of burial.

Historic Rates of Cremation and Burial and Future Projections5:

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The Costs of a Funeral May Shock You

If you have yet to investigate the cost of a funeral, you are in for a big surprise. That’s because they are likely to cost your family about $14,000 or more. While not all funerals cost that much these days, the price is only rising. There are a multitude of reasons that your burial will cost this much for your family. Just a few of these cost elements include:

• Coffin Prices
• Funeral Services
• Church Fees
• Director Services
• Extra Costs (Musicians, Decorations, etc.)
• Obituary Fees
• Grave Plots
• Grave Opening and Closing
• Grave-Side Services
• Burial Vaults and Grave Liners
• Headstone Costs
• Setting the Headstone
• Legal Fees
• Catering Fees for Any After-Funeral Services
• “Thank You” Cards for Those Who Attended

All of these baffling costs and surprising extras can take most families by surprise when burying a loved one. It isn’t unusual for a family to anticipate a cost of about $6,000-7,000 before the burial, as this is what many funeral directors will say when asked for a price. However, they are giving you just the basic cost and are ignoring many of the amenities that can cost so much to pay.

These directors aren’t misleading you or trying to force you to pay extra money. The truth is that funeral prices often exponentially rise because families want to do everything they can to celebrate their loved one. This instinct is very understandable but can be costly. Adding extra elements, such as live musicians, to the service will add hundreds and even thousands of dollars to a burial cost and push it far outside of your family’s ability to pay.

These rising costs are just one reason why so many people are investing in a burial insurance policy late in life. These types of plans are designed to cover the financial difficulties of paying for a burial and a majority of funeral costs. They can be tweaked by those who own them to handle a multitude of unexpected expenses, making them a very diverse and useful way of avoiding financial loss.

However, other individuals may think that a burial insurance policy is not necessary for their needs. For example, they may have a decent amount of money saved up to cover it or have a plan for life insurance that they think will take care of their family. That is not always the case these days.

While life insurance is a powerful way of helping your loved ones, it might not be enough to cover a funeral while providing them with financial aid. And if your loved ones cannot pay for the price of your services, they are going to be put in a tough situation. While they can get help from a variety of sources, they aren’t quite as beneficial as insurance.

What Happens if Your Family Can't Pay for a Funeral?

Let’s say that you pass away suddenly and your loved ones, for whatever reason, cannot access your finances. They are now stuck paying for your funeral without your help. Even worse, your savings are going to be taxed when you pass, which will cut severely into its value. As a result, your family is going to be faced with having to pay for your funeral without your help.

Thankfully, if your family cannot pay for your funeral for any reason, they may have several options that they can consider. Each of the following payment methods is useful in many scenarios. However, having to do the extra work to raise that money will put even more stress on their lives after you pass. These payment options include:

• Employer Benefits – Some employers will provide cash to their employees when a loved one dies. These benefits are more likely if you are in a union than if you are not.

• Veterans’ Benefits – Those who served in the military and who were honorably discharged are usually entitled to burial in a national cemetery at no extra cost.

• Victims’ Benefits – Many states provide financial aid and assistance to those who have lost a loved one due to an accident or a homicide. This cash can be used for a burial and other types of funeral expenses.

• Social Security Benefits – Those receiving Social Security can get $255 when they pass away. Obviously, this is a minimal amount but can help in some cases. Medicaid and other types of elder insurance offer a similar amount of minimum payment.

• Cash Drives – Families who can’t afford a burial often turn to community fundraisers to offset the costs. Traditional cash drives include car washes and bake sales, though online sites like GoFundMe are often a beneficial way to pay for a funeral.

• Funeral Home Financing – While most funeral homes can’t afford to set up a payment plan, they usually work with third-party groups to provide financing options. These are designed specifically for funerals and are available at fair and reasonable repayment prices.

• Loans – When none of these options are available for a family, they can always turn to loans. These types of loans are often available at interest rates as high as 15 percent, which is why they are so often argued against by funeral directors.

While all of these options are beneficial for your family, they each have drawbacks. For example, only veterans can get that kind of free burial while some states don’t provide benefits for victims of crimes or accidents. And while fundraising is an excellent step for many people, there is always the chance that they won’t raise enough money and will still be stuck paying some, if not all, of the funeral costs on their own.

Falling into debt after the loss of a loved one is a scenario in which too many people find themselves these days. You don’t have to leave your family with that kind of money hanging over their heads when you pass. Instead, you can buy a funeral insurance policy to help them out. Fully understanding the nature of these policies and the types available is critical for protecting them from lifelong debt.

Funeral and Burial Policies Can Protect You in This Scenario

If you have never heard of insurance for funerals or burials, it is essential to grasp their many benefits fully. These policies go into place the moment that you pass away. They give your loved one a large sum of money that they can use to pay for your funeral and burial. Many policies are large enough that your loved one should have a decent amount of money left over for other needs.

A growing number of individuals are turning to these types of policies as a way of keeping their family safe from financial problems. For example, you could purchase a funeral policy and pair it with a large life insurance sum. This boost of cash will not only make it easy for your loved one to pay for your burial but also provide them with the money they need to stay financially stable while they recover from your passing.

Just as importantly, they can provide you with the peace of mind knowing that your loved ones will be taken care of after you pass. If you are the head of a household, you want to make sure that everyone you love is not suffering from financial hardship after you pass away. One of the greatest gifts you can give them in a burial policy that will make sure you are interred the way that you want and at a price that your family can afford.

Before rushing to your insurance provider and asking about these policies, it is worth knowing where you can buy them. There are a large number of providers who are willing to sell these types of plans. In fact, many people buy them from some somewhat unexpected sources as a way of saving a little bit of money on their premiums every month.

Where You Can Buy These Policies

There are several groups from which you can buy this type of policy. Many funeral service providers offer this kind of coverage to people who want it. Their policies are often the least expensive and easiest to afford. However, these providers often can’t afford to pay out large sums of money. Thankfully, many types of insurance companies have funeral policy options that you can purchase if you want a larger amount of money for your burial.

These types of policies are offered by large insurance companies that can afford to pay hefty payouts to their claimants. In most cases, they can provide your family with the money from your policy almost immediately. There is very rarely a delay of more than a day or a week with this kind of plan. As a result, it is easy for those who are grieving to feel comfort in the fact that they won’t have to struggle to pay for your funeral and burial.

That kind of peace of mind makes these policies more than worth the extra cost they bring to your monthly budget. And if you are sick or anticipate passing away in the next few years, buying this kind of policy for your loved ones can allow them to ignore the financial stress caused by your upcoming funeral and enjoy their remaining time with you. Therefore, it is crucial to understand what types of policies are available and how they can help your family.

Types of Policies

Funeral insurance comes in many different shapes and sizes. That’s because policies are available from a multitude of providers. As a result, it is critical to understand what kind of coverage is there for your needs and what kind of companies provide this insurance for you.

The following policy types are the most commonly used for funerals and burials. Each has different advantages and disadvantages to consider before you make a purchase. Read through this list to decide which is the best bet for your specific burial needs:

• Burial – This policy is a type of life insurance that is designed to cover the costs of your burial and funeral. The benefits available for these types of policies will vary depending on your provider and how much you pay. Most are provided by funeral service providers.

• Guaranteed Approval – Many types of burial policies are limited to those who are healthy. If you are suffering from a disease and want to make sure you can get coverage, this type is a good choice. It will cost more to pay for, though, so keep them in mind when making a purchasing decision.

• Preneed Coverage – This type of policy is a great choice if you have a good idea of what you want to be done for your funeral. Preneed insurance policies will pay for the basic needs for your funeral, those that don’t change that much from year to year. They provide payment with almost no delay, making it a great choice for those who have detailed funeral plans.

• Final Expense Insurance – If you want coverage that is larger and which provides higher benefits, consider a final expense policy. This type of insurance is given out by an independent insurance agent and gives you access of up to $75,000. This cash should make it more than easy for your loved ones to move on after you pass.

• Funeral Trust – While a funeral trust isn’t technically insurance, it is a financing option that many consider. That’s because it provides a good option for those who can’t afford insurance. You deposit money into a trust account that earns interest over time. Make sure you start this type of fund soon because it will take time to grow to an appropriate level.

As you can see, there are many options to consider here. It can be tough for many individuals to sort through their choices and pick one that is right for their needs. For example, preneed coverage is nice if you have a simple funeral but can be less useful if unexpected costs pop up. And final expense insurance is very comprehensive but expensive for many people to afford.

That’s why it is essential to take the time to assess your options correctly. The next section will break down a few critical questions to consider when buying this type of policy. Though it doesn’t cover every question that you could ask, it should give you a good insight into the kind of considerations you need to keep in mind when purchasing this type of burial insurance policy.

Choosing the Policy That is Right for Your Needs

One of the most important steps to consider when purchasing this type of policy is asking yourself a variety of critical questions. The information you gain by asking a few simple questions is designed to make it easier for you to purchase a policy that meets the needs of your family.

Each of these questions is designed to meet a unique purpose. For example, some will focus strictly on your financial needs while others will focus on those of your loved ones. So before you make a purchasing decision on any policy, make sure you ask yourself:

• How Much Money Do I Need? – There are many types of insurance policies available for your funeral needs. Do you want to buy a funeral insurance policy that pays $75,000? Then you should look into that option. However, you probably won’t need to get that much money for a funeral. Find an amount that covers your burial needs and gives your loved ones a little bit of extra cash.

• What Can I Afford to Pay? – This type of insurance is like any other policy. You need to pay a premium every month to keep it active. Make sure that you pay enough money to get a high-quality policy but not an amount that you can’t afford to pay every month.

• Do I Want a Religious Funeral? – If you want to get a religious funeral, you will pay a little bit of extra money. If you aren’t religious at all, you might want to consider skipping this type of service. However, many individuals still get religious funerals for the sake of their loved ones.

• Who is Going to Receive My Money? – Make sure that you pick a recipient who will use your funeral money the way that you want. In this way, you can make sure that all of your funeral expenses are covered before you pass away.

So if you are worried about your loved ones getting stuck paying thousands of dollars for your funeral, make sure that you talk to your provider about this type of insurance. Though the extra cost may be a little bit extra to your budget, it is more than worth the price.

And if you have any more questions about this type of insurance policy, it is smart to read through this detailed FAQ list. We researched some of the most critical issues regarding burial insurance and worked hard to ensure that we covered as many of them as possible here.

Funeral Insurance FAQ

Q: Is funeral or burial insurance strictly necessary for a burial?

There is no law saying that you have to buy funeral insurance for a loved one or yourself. As a result, you can avoid paying the premiums completely if you don’t feel it is necessary. However, it is usually a good idea for people like you to get one of these policies before they pass.

That’s because they are such a powerful way of managing your burial needs after you are gone. And many types of policies cost as little as $10 per month, meaning that it is more than manageable for most people to afford this type of coverage. Upgraded policies may cost a bit more but are still worth the price.

Upgraded policies will cover more of your burial costs than less expensive ones. That said, all plans should include a majority, if not all, of your funeral needs. Striking a balance between saving money on your premiums and getting maximum protection is critical.

Q: How is this type of insurance different from life insurance?

While life insurance and many kinds of insurance for burials are very similar in what they cover, their intent is very different. For example, a life insurance policy is intended to provide your family with the cash they need to hold themselves over financially for a while after you pass away.

Final intent insurance and other types of burial policies are explicitly designed for funeral expenses. They cannot be used for any different kind of financial needs. It is often wise to get both funeral and life insurance policies to make sure that your loved ones aren’t financially suffering after you pass.

For example, you can use a funeral policy to pay for your burial costs and then provide your loved ones with $10,000 or more in cash with a life insurance policy. That extra money will make it easier for them to adjust to life without you, even though it won’t make the loss any more comfortable.

Q: Do these policies cover cremations?

Even though these types of insurance have the words funeral and burial in their name, they will also cover cremations. They are, thankfully, not limited solely to those who want to get buried. In fact, a large number of people getting cremated often turn to these policies to pay for their needs.

For example, you still need to pay to be cremated and must choose a container for your ashes. Other types of expenses include extra decorations and the price of the funeral itself. By getting this type of insurance policy, you make sure that your loved ones aren’t stuck with a price that they can’t pay.

And because cremation is less expensive than burial, you can often get policies that have lower premiums. This option is something that will vary depending on your insurance provider. So make sure you talk to them about this before assuming it will cost you less.

Q: Why do funeral costs vary so much?

One frustration you might find when investigating your final rite costs is the variation in price between different funeral homes. You might find that one funeral home is willing to do it for $5,000 while another is saying it will cost over $8,000. The variance in these costs depends on the types of services that the home provides.

For example, some funeral homes will provide you with video services that showcase pictures of your life to your loved ones. Others will have features such as a comfort animal that is trained to spot grievers and provide them with comfort. Make sure you choose a service that is covered by your policy to ensure that it gets paid.

Beyond those variables, other elements can quickly add to your burial cost and make it tougher for your family to afford. For example, hiring a funeral service to transport the body, to embalm it, and to dress it up will all add extra costs to your burial. These additional price elements may sneak up on you and force you to pay more than you anticipated.

Q: What kind of elements affect casket burial prices?

Another thing that may surprise you is the different costs of burial lots. These various costs are because certain lot locations are more desirable than others. It might seem strange that people would pay more for a lot that they’ll never appreciate when they are alive, but the location of the plot is more important for their loved ones’ needs and emotions.

For example, a grave near a waterfall or on a hilltop is more beautiful than those in a valley or a slightly swampy area. The prime location of the plot is going to affect how much it costs to buy one, mainly since you may have to outbid others attempting to buy the same one. Talk to your loved ones about this fact before you buy an insurance policy or choose a lot to purchase. This step can ensure that you don’t pay too much for a lot that isn’t right for your needs.

You’re also going to have to take into account the cost of the casket. Many people want one that will last for years and which looks great when they are buried. Others don’t care what the coffin looks like as long as it holds them during the funeral. Make sure you research this subject carefully before making a purchasing decision.

Q: Is it better to take out a loan to pay for funeral expenses?

Most funeral directors will vehemently argue against taking out a loan to pay for a burial. While there are several types of loans available for these needs, they will end up costing you and your family more than burial insurance. That’s because they will have a longer repayment cycle paired with a multitude of interest rates that will add thousands of dollars to the final cost.

Instead, if you don’t get this type of policy and your family can’t pay, your funeral home is likely to pair them with a financing company that is designed specifically for this purpose. These groups understand the mental anguish and financial troubles caused by the death of a loved one and will strive to provide you with a fair and reasonable payment cycle.

However, it is better to just avoid this issue by getting an insurance policy instead. These policies cost a fraction of the price of a loan or other financing options and will make sure your loved ones don’t have to pay an excessive amount of money. So set aside a little extra money every month and get one of these policies.

Final Thoughts

Buying an insurance policy for a funeral is one of the smartest decisions you can make late in life. You will protect your personal finances and make it easier for your loved ones to move on after you passed. Taking the financial edge off of paying for the burial can give them the boost they need to avoid losing their home because they can’t afford to pay for your funeral costs.

So don’t hesitate to research these types of policies to learn more about how they can benefit you. You might be surprised at the number of plans available and just how much they can do to help your family. We understand that it can be hard to balance your insurance finances when you are retired, but doing so will keep your family safe and give you the peace of mind that you deserve at this point in your life.

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