Most Common Types of Burial Insurance

Photo by Jp Valery via Unsplash

Burial insurance is a type of life insurance that covers the cost of funeral services. In addition to burial costs, this type of policy may also cover things like embalming or cremation. You may have read that burial policies can be perfect alternatives to pre-need funeral plans. However, there are significant differences between these two types of coverage. Let’s explore the most common types of burial insurance policies before deciding what is right for you and your family.

Simplified issue life insurance

First off, simplified issue life insurance is a type of burial insurance. It allows you to purchase coverage without having to take a medical exam. While this may seem like a good deal, it’s not always the best option for everyone. You should consider all your options before making any decisions about what kind of policy is right for you.

This type of coverage is accessible to anyone who meets the age and residency requirements of their state or territory. In most cases, previous health conditions won’t affect whether or not you’re eligible to apply for this type of policy.

The cost varies depending on your the amount of coverage you’ve selected. It also depends on the carrier that issues the policy. However, it tends to be higher than other types because there are fewer restrictions on applicants’ lifestyles and habits. This means that there’s less need for extensive medical exams or comprehensive health screenings.

Guaranteed issue life insurance

Guaranteed issue life insurance is a type of term life insurance that is issued without medical underwriting. By design, it is for people who are not in good health. This way they can get coverage before they have an opportunity to become sicker.

Because guaranteed issue policies don’t require a physical exam, they can be purchased online or over the phone. This makes them much easier and faster to buy than traditional plans where you need to go through an underwriter first.

Pre-need funeral insurance

You can purchase a pre-need funeral insurance, or “burial insurance,” before you die. This type of policy typically costs less than traditional burial insurance. Moreover, it is often available only for a limited amount of time. Pre-need funeral policies can be useful if you want to leave a legacy for your loved ones. Or perhaps help them avoid the stress of paying for a large burial.

However, some states require pre-need insurance companies to refund premiums. That is if they sell any policies that do not have enough money in their accounts to cover all related expenses if something happens unexpectedly (such as an illness). In some cases, the state requires the company to return more than just the amount the consumers paid.

Alternatives to Burial Insurance

While most people will do well with burial insurance, there are alternatives. Are you concerned about getting a pre-need funeral insurance? Then you could consider a universal life insurance policy instead. Universal life insurance is similar to whole life as it offers guaranteed growth over time instead of an immediate payout. However, unlike whole life, it has flexible premiums and varying death benefits.

You don’t want to commit to long-term payment plans but still want some assurance against unpleasant surprises after your death? Then you may be able to find a cheaper alternative by shopping around for policies based on your age or health status. After all, some companies offer discounts if they know better than to expect you’ll die soon.

Final Thoughts

In the end, it’s important to remember that burial insurance is just one option for protecting your family in the event of your death. There are many other types of life insurance available, and they may be a better fit for you if burial insurance doesn’t meet your needs.

We hope that you now have a better understanding of how burial insurance works. Do you wish to learn more about burial policies? Or want help finding one that meets your needs? Feel free to contact us today or check out our other articles on this topic.

Do you feel ready to start making your own end-of-life plans? Myend is here for you! Click here for more information or sign up today for a free account.

Navigating Terminal Illness

Download our Guide with 10 tips for those dealing with a terminal illness, or for loved ones supporting someone who is terminally ill.

Free End of Life planner

Sign up to receive our free checklist to help you get started with your End of Life Plan
Previous slide
Next slide

Organize, store, and share all the life-essential information in one place.


Myend is not a law firm, it does not engage in the practice of law, and it does not render any official legal advice. Therefore, you are hereby advised to seek your own legal counsel regarding any legal issues. Myend’s articles are meant to be taken as suggestions and therefore Myend carries no responsibility for the user’s actions.