Signing up for a funeral insurance plan can ensure your final expenses are covered.
Funeral insurance, also referred to as burial insurance, is a small insurance policy to cover final arrangements. It ensures beneficiaries have money to pay expenses related to death.
Funerals are expensive: The median cost of a funeral with a burial is about $7,400, according to the National Funeral Directors Association. With cremation, the cost is $6,300. These numbers don’t even include the cost of a headstone, flowers, or an obituary, which can easily tack on a few hundred to a couple thousand dollars.
Burial insurance plans are helpful for those who have limited funds to pay for a funeral and don’t want to pass the financial burden onto loved ones. Burial insurance allows policy holders to manage their final arrangements in small, affordable payments over time.
Those who wish to pre-arrange their own funeral but don’t have the flexibility to put money aside for it can benefit from funeral insurance. These policies are appealing to people of tight means: those without a form of retirement, who have little to no savings, or who are living on a fixed income. Burial insurance is also attractive to those in poor health: Applicants can’t be turned away for pre-existing conditions.
It’s important to note that funeral insurance is different than setting up a prepaid funeral policy, one in which a person works with a funeral director and pays for all expenses in advance.
To learn more about funeral insurance, discuss a burial policy with a local agent. Find an insurance agency who’s right for you in our Insurance Guide.
