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Burial Insurance

Also known as preneed policies, burial policies are marketed as a way to cover the cost of final expenses.

Historically, some of these policies have had a very high price compared to their death benefit. Make sure the amount paid in will not quickly exceed the possible benefit. Otherwise, even setting money aside in a savings account may be a better option.

Licensed insurance agents who work for a funeral home commonly sell these policies in the form of a whole life insurance policy. If there is no price guarantee, then the insured should insist on naming their own beneficiary instead of naming the funeral home as beneficiary. 

With a guaranteed policy, you are assured that funeral prices won’t change, but a non-guaranteed policy means that prices could escalate with the market.

Check with the Better Business Bureau to make sure you are buying from a reputable company. Scams and unexpected expenses are not uncommon.

Who Might Consider a Burial Policy

You might a consider a burial insurance policy if:

  • You have no life insurance coverage.
  • You can't get term life insurance.
  • You have limited savings with no other means to pay for your funeral expenses and outstanding debts.
  • You want a separate policy to specifically cover your final expenses.

A burial or preneed insurance contract made directly with a funeral home will cover some or all of the following:

  • Burial plot
  • Casket or urn
  • Grave marker
  • Cremation or embalming
  • Funeral cars
  • Flowers