Burial and funeral planning are an important element of any long-term financial plan. The costs for both can be high; the average funeral expense ranged from $7,000 to $10,000 and up, which includes a funeral service, burial, and installation of a headstone.1 Burial insurance can help make those costs easier to bear for your loved ones.
Burial insurance, referred to as funeral insurance or final expense insurance, is a specific type of life insurance that’s designed specifically for paying end of life expenses. This is most often whole life insurance, which means it stays in place throughout your lifetime as long as premiums are paid, although some insurers offer term life coverage for burial expenses.
Depending on how your policy is structured, a whole life burial policy may or may not allow you to accumulate a cash value that you can borrow against. Burial insurance policies typically range from $5,000 to $50,000, and this death benefit can be paid directly to your beneficiaries to manage burial costs. This is different from traditional life insurance, which may offer $1 million or more in coverage and can be used to pay burial expenses, as well as everyday living expenses, college costs, mortgages, or other debts. If burial insurance is a missing piece of your financial plan, consider these companies for getting the coverage you need to pay for final expenses.
The 7 Best Burial Insurance Options of 2021
- Best Overall: AARP Guaranteed Acceptance Life Insurance
- Best for Low Premium Rates: Globe Life Final Expense Insurance
- Best for Smaller Burial Expense Needs: Mutual of Omaha
- Best for Additional Protection: AIG Direct Guaranteed Issue Whole Life Insurance
- Best for Flexibility: Colonial Penn
- Best for Convenience and Speed: Fidelity Life
- Best for No Waiting Period: Transamerica Immediate Solution