How Burial Insurance Helps Cover Final Expenses

Nobody enjoys planning for their own funeral, but a funeral can strain a family's finances at the worst possible moment. If you're in your 50s, 60s, 70s, or beyond and don't already carry life insurance, a burial policy can step in to cover that cost. Recent research into why people buy life insurance found that paying for final expenses is the single most common reason Americans give.

Burial insurance is a modest life insurance policy built specifically to pay for funeral costs, burial expenses, and other end-of-life bills such as unpaid medical care. Coverage usually starts around $1,000 and tops out near $25,000, though a small number of insurers will write policies as large as $50,000. When you die, your beneficiaries receive the payout and can spend it however they choose.

You'll also hear this coverage called final expense insurance. It's generally open to anyone 50 or older, and most policies don't require a medical exam.

a broader look at life insurance options for older adults.

If other people depend on your income, consider life insurance built to replace that income before focusing on final-expense coverage alone.

The different types of burial insurance

Burial insurance isn't really its own product — it's a marketing label. Underneath, it's a small whole life insurance policy aimed at older buyers.

Insurers generally sell two versions: simplified issue and guaranteed issue.

Simplified issue policies skip the medical exam but still ask you to answer a health questionnaire. A handful of answers can disqualify you — using a wheelchair, living in a nursing home, or managing a serious condition such as cancer, diabetes, or heart disease may lead to a denial. Outside those situations, most older applicants are approved for simplified issue coverage.

Guaranteed issue policies drop both the exam and the questionnaire — coverage is approved with no questions asked. Because the insurer knows nothing about your health, guaranteed issue coverage usually costs more to offset that added risk.

Term life insurance can technically cover final expenses too, but it isn't always the right tool. Coverage ends when the term does, often after 10 or 20 years, and you may well outlive it. Term policies work better for finite obligations, like paying off a mortgage, raising children, or bridging the years until retirement.

the different types of life insurance explained.

Weighing the pros and cons

A final expense policy can bring real peace of mind and spare your family from added financial stress while they're grieving. Because it typically skips the medical exam, it's a solid option if a pre-existing condition has kept you from qualifying for standard term or whole life coverage.

On the other hand, burial insurance tends to be costly, and many policies bury a two-year waiting period in the fine print. If you die of natural causes during that window, your beneficiaries won't receive the full death benefit — instead, the insurer usually refunds the premiums you paid, or pays a smaller amount.

If that possibility worries you, shop around and look specifically for a policy without a waiting period. Some major insurers offer full coverage from day one on certain plans, so it's worth comparing before you commit. Exact terms, pricing, and availability vary by insurer and by state, so confirm the details of any policy before you buy.

a comparison of leading burial insurance companies.

What burial insurance costs

Burial insurance tends to run expensive largely because it's marketed to older applicants and usually skips the medical exam, leaving insurers with an incomplete picture of who they're covering.

Premiums climb with age, so it pays to buy sooner rather than later once you know you'll need it. The tables below show sample monthly rates for guaranteed issue policies at a few coverage levels.

Sample monthly rates for guaranteed issue coverage — men

Source for monthly rates: Choice Mutual. Data reflects the lowest three rates for each age averaged, and is valid as of May 13, 2025.

Sample monthly rates for guaranteed issue coverage — women

Source for monthly rates: Choice Mutual. Data reflects the lowest three rates for each age averaged, and is valid as of May 13, 2025.

Figuring out how much coverage you need

Start by tallying the specific costs you want your policy to cover.

According to the most recent available data, from 2023, the median funeral with viewing and burial costs about $8,300.[1] Cremation brings the median down to roughly $6,280. Both figures shift depending on where you live.

Aim for a policy that covers everything you're picturing — even flowers, a limousine, and catered food — so your family never has to dip into savings to pay for it.

How much life insurance do you actually need?

Burial insurance versus funeral insurance

These two terms sound alike but work differently. Burial insurance pays your beneficiary directly; funeral insurance usually sends the payout straight to the funeral home.

Burial insurance functions much like an ordinary whole life policy. Once your beneficiaries file the claim, they can spend the money however they see fit. You can share your wishes ahead of time, but nothing in the policy dictates how the money gets used. This makes it a good fit if you want your family to have full control over the payout.

Funeral insurance — sometimes called pre-need life insurance — ties the payout directly to a funeral, burial, or cremation you've already arranged.

With this option, you typically choose a funeral home, work out the details in advance, and buy the policy through the funeral director. Some homes will lock in today's price, guaranteeing the policy covers the full cost no matter when you die. The payout from a pre-need policy usually goes straight to the funeral home rather than your family.

Pre-need coverage suits anyone who wants their final wishes guaranteed and doesn't want relatives making funeral decisions under pressure. If that appeals to you, ask a funeral home you trust whether it offers a pre-need plan.

Alternatives worth considering

Burial insurance makes sense if you only need a small amount of coverage or want to avoid a medical exam. But if you're in reasonably good health, there are other ways to cover end-of-life costs:

• Term life insurance offers temporary coverage and can cost less if you're in your 50s or 60s, in decent health, and willing to sit for a medical exam. Term policies generally carry lower average rates than other coverage types.
• Funeral insurance lets you prepay funeral and burial costs directly, which suits people without other debts or obligations to settle at death.
• Setting money aside in your will for funeral costs is possible, but keep in mind those funds may not reach your family quickly enough to be useful.

Other reasons people buy life insurance

Final expenses are just one reason to buy life insurance. Here are a few other common ones:

• Using life insurance to replace lost income
• Buying life insurance as an investment
• Using life insurance to pay off debt
• Using life insurance to leave an inheritance

A short self-assessment of your finances and family situation can help you decide whether burial insurance or another type of policy fits you better.

Sources

1. National Funeral Directors Association. 2023 NFDA General Price List Study Shows Inflation Increasing Faster than the Cost of a Funeral. Accessed May 19, 2025.

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