The goal of funeral insurance is to provide funds to pay for funeral expenses. Most people who purchase funeral insurance do so to ensure that all the costs associated with their final arrangements are covered and to offer financial protection for family members in a time of grief and loss.
Funeral insurance is also referred to as burial insurance or final expense insurance. In most cases, funeral insurance proceeds payout $5,000 to $30,000, depending on how the policy is structured and if the premiums are paid in full. Recent statistics put the median cost of a traditional funeral service with viewing and burial between $7,000 and $9000, while cremation is generally at a lower price. Total end-of-life and funeral costs vary based on the cause of death, personal preferences, and other factors, so it’s important to ensure your funeral insurance policy coverage is sufficient. Talk to a licensed insurance expert who can help you compare different policies and coverage terms before you buy.
Understanding what burial insurance pays for is a key component of the estate and funeral planning process. If you are making funeral arrangements in advance and considering buying funeral insurance, here’s a summary of what the proceeds should cover.
There are several costs associated with the funeral, and funeral insurance can help cover many of these.
In addition to funeral costs, funeral insurance can help cover costs associated with the burial.
Funeral insurance policies are popular because payment is processed soon after a loved one dies. However, just because the beneficiary receives the payout quickly doesn’t mean they are obligated to use the money to pay for funeral expenses—they can spend the proceeds however they wish. As such, there are other ways to pay for a funeral that might work better for you and your family.
If you have any questions about making funeral arrangements and paying the related costs, talk to a funeral director. With Funeralocity, a funeral comparison website, you can easily find a funeral home that suits your preferences. Search online to find a funeral home near you.Back to Knowledge Center