What Are Burial Policies?

Seniors, middle aged people, and other family members who care for these people, may have noticed some advertisements for burial insurance policies. Do you need a burial policy? Before you decide to buy or pass, please take a moment to understand what the products can do for you.

They are simply whole life insurance policies that have been developed to help families pay for burials, funerals, and other costs that tend to crop up when a loved one dies. They will not be the right solution for every family, but they can help some people come up with cash at a critical and stressful time.

They usually have a fairly small death benefit when compared to other types of life policies. Policy face values usually range from $2,500 to $25,000. If you want to buy a policy, you must try to figure out how much coverage you need.

They have also been designed so that it is easier and faster for older people to apply for. You do not have to worry about taking a medical exam either. You may have to answer a few health questions to complete some applications. These are called simplified issue policies. Others do not ask any health questions, and these are called guaranteed issue policies. There are advantages and disadvantages to each type, so it is important to compare them so you find the best one for you.

A simplified issue policy will usually offer an immediate death benefit once the policy gets issued. They also tend to have lower premiums. If you can qualify for a simplified issue health policy, it will usually be a better deal.

Guaranteed issue policies may not provide an immediate death benefit. There may be a waiting period of 12 - 36 months. Insurers use this waiting period instead of a health application. Rates also tend to be a little bit higher than they would be for simplified issue policies.

Should you buy a burial policy? It is one way of making monthly payments in order to plan ahead for costs that families have to pay when a loved one passes away. Funerals in the US may cost $8,000 or more. Families usually have other costs too. Some people may have to travel. Others will need to take time off work. Guests wil have to be fed and housed. In addition to enduring the stress of having a family member die, families may have financial problems because of the other burdens.

A burial policy gives this family an easy way to plan for these expenses. The insured person, or a family member, may simply pay a monthly premium. In return, they will know that the policy will give them a cash benefit when the insured person passes away. If your family has a tight budget, a burial policy may be a good solution.

What do you do if you do not need the entire face value of the policy? If the policy beneficiary does not need to spend all of the money on final expenses, he or she is free to keep the rest. Most of the time, the proceeds from life insurance policies will not be taxed either. Burial insurance can also pass on money to survivors.

A burial policy may benefit you. It is important to compare different plans before you make a final decision.


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You may want to learn how guaranteed life insurance policies work. You can also visit us for free burial insurance quotes online.