What Is Funeral Insurance And How Does It Work?

Plenty of people buy life insurance as one of the best ways to cover funeral costs and to leave no financial burden on their families. According to numbers, almost 84% of life insurance policyholders consider final expenses as one of the common reasons for buying insurance. Some of them buy funeral insurance (a type of life insurance) specifically designed to pay funeral expenses. It is also known as burial insurance. 

What is Funeral Insurance?

Funeral insurance is a financial cover provided by the insurance companies to help your family pay for funeral and memorials services when you are no more. This type of insurance policy can also be used to cover medical costs like a terminal illness or a serious injury due to an accident. This means, buying funeral insurance not only offers financial support to your family in case of your death but also works as the plan B if there is something unpleasant during your life. Since funeral costs are getting higher day by day, more and more people are buying funeral policies to eliminate the financial strain from their families. This type of insurance policy can give your family peace of mind when they need to pay for your final costs. 

How does burial insurance work?

When you buy a funeral insurance policy, the insurer pays out a particular sum of money usually known as a benefit or cover amount upon your death or when you face an uncertain situation covered by the insurance provider. The cover amount can be used by your family to cover the funeral costs or other final expenses. The policy benefit can also be used to pay off other costs like medical bills, home loan or credit card bills, etc. 

The best thing about funeral insurance is that you can buy it for the cost of premium you can easily afford. This means you can find out the low-cost plans that still provide sufficient benefits to cover your final costs without having an impact on the personal finances of your loved ones. 

Unlike other insurance plans and policies, funeral insurance covers an unavoidable outcome. We can live without a car or health insurance plan but we’ll all need a funeral sooner or later. Most of us don’t think about funeral planning in advance. But creating a funeral financial plan ahead of time can save your family or loved ones from financial stress when it comes to pay for funeral costs. 

Why you should buy Funeral Insurance?

Easy to get

Funeral insurance plans are easy to apply as you can either buy them online or by consulting with an insurance agent even without taking a medical exam. You may be asked about your age, tobacco use, and any serious health issues if any. Some insurance providers even don’t ask about such medical questions.

Seemingly Inexpensive

Funeral or final cover insurance policies can be purchased for smaller amounts like $3000, $5000, or $10000. The premium rates of funeral policies are also lower than other types of life policies. However, one can purchase a larger cover with a higher premium amount as per individual needs. 

A vehicle of Love & Care

Buying funeral insurance is one of the best things you can do for your family even when you pass away. Availability of this type of insurance keeps your family from struggling to pay for your final expenses or seller your debts or other bills. As a result, they will be able to perform your ending ceremonies and formalities without facing financial pitfalls or borrowing money from a bank or lender. 


Since buying funeral insurance is one of the best and most effective ways to provide financial protection to your family when you are gone, you should determine your funeral needs and requirements to buy the right plan. You should also compare quotes, plans, and benefits to make the right decision.