What is Burial Insurance and How Does it Work?

Photo by Ignacio Amenábar

In simple words, burial insurance covers the cost of a burial. But what is burial insurance and how does it work exactly? This insurance can include everything from a casket and burial plot to the funeral service itself. Burial insurance policies vary widely in terms of coverage and terms. Therefore, it’s important to do your research when choosing one.

What is burial insurance?

As we mentioned above, burial insurance is a type of insurance policy that covers the cost of a funeral. You can purchase it as an add-on to other life insurance policies, or as a standalone product.

A burial policy, or burial coverage, might pay out after death in the event that there are any lingering costs from your end-of-life arrangements. This could include things like:

  • Funeral costs (including cremation).

  • Expenses related to transporting your body to the place where it will be buried or cremated. Such expenses include embalming and transportation by vehicle.

How does burial insurance work?

You pay an annual premium, which is usually quite low. The point is that you can afford it even without any coverage from other sources (like Social Security). What happens if you die while the policy is still active? Then the company paying your premiums will pay out funds to cover those final expenses. They then close the account when they’re finished paying out claims against it.

This money goes toward covering burial costs such as caskets and headstones, transportation services and cemetery plots. It can also include death certificates, memorial services, flowers. Basically, it can include anything that can bring someone peacefully into death after a lifetime on Earth.

Policy Application

Applying for a burial insurance policy is, in most cases, very easy and straightforward. First you need to choose the amount of coverage of the insurance. Then, you appoint the beneficiary or beneficiaries of the insurance. It’s good to put some thinking into these things in advance. Finally, the application may ask only a few health questions—or no questions at all. Rates depend primarily on age and gender.

Benefits of Burial Insurance

Burial insurance is a type of life insurance that pays out benefits to your family members upon your death. It also helps cover funeral expenses, which can be very expensive, especially if you choose a burial service with a casket and embalming.

Moreover it is available as either term life or permanent life insurance. With term life policies, the premiums are lower than with permanent policies. However, they don’t accumulate interest or provide any savings growth over time. Permanent policies are more expensive in the short-term but provide greater protection over time. This is because they accumulate cash value that you can use at any point during the policy’s life span.

How can I get a burial policy?

If you’d like to get a burial policy, there are several options. One is to purchase one directly from an insurance company. You can do this by going online or calling customer service and asking for more information about the policies they offer.

Another option is to work with a funeral home that offers burial policies as part of its services. These policies will usually have different coverage than ones sold directly from an insurance company. This is because it’s in the funeral homes’ best interests to provide as much coverage as possible while keeping premiums low. This often means offering different add-ons (such as memorial donations) not part of standard plans available elsewhere.

Another alternative worth considering is setting up an irrevocable life insurance trust (ILIT). These trusts allow individuals holding life insurance policies on themselves to appoint someone else—typically family members or charities. This person receives any payouts when the policy holders die without having these proceeds going through taxation as income. Instead taxation takes effect when the payouts have reached a beneficiary’s accounts. This allows you, thus, to save money.

Don't worry anymore about leaving behind a financial burden

Burial insurance is a type of life insurance, just like term or whole life. You can buy it as a separate policy or add it to another kind of life insurance you already have. Once you’re approved for burial insurance, your policy’s money are available to pay for the costs of your funeral and burial. Common ways to pay out this type of protection are through death benefit and cash value benefits.

Cash value benefits let you choose when you want to use the money in your policy (for example, writing checks or mailing out bills). They also allow you to borrow against them. So if something happens now there’s still some left over in case someone else needs help later on down the line.

Death benefit payments go directly from one provider into another’s hands without any delays. This is because everything is already set up ahead of time. However this method may not always be available depending on what type of arrangement is in place.

Final Thoughts

Burial insurance is a great way to take care of your final expenses so that you can grieve without worrying about the financial burden. It’s important to know how burial insurance works. For example, that includes what it covers and how much you might need before making an investment in this policy.

We hope that you now have a basic 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.