Burial insurance, also known as final expense insurance or funeral insurance, is a type of life insurance that helps cover the costs associated with end-of-life expenses. These include funeral services, burial or cremation, medical bills, and any outstanding debts. This policy is designed to reduce the financial burden on surviving family members.
#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
Burial insurance is a small whole life insurance policy intended to pay for funeral-related expenses. It typically offers coverage amounts between $5,000 and $25,000, and the benefit is paid to a designated beneficiary upon the policyholder’s death. Unlike traditional insurance for life, burial insurance focuses solely on immediate final costs, not long-term income replacement or estate planning.
Term Plans
Application: Most burial insurance policies are available to individuals aged 50 to 85, with simplified underwriting. Many plans do not require a medical exam, but may ask a few health-related questions.
Coverage: Once issued, the policy remains active for life as long as premiums are paid. The death benefit is fixed, and life insurance quotes do not increase.
Beneficiaries: The lump sum payout can be used at the family’s discretion, for burial, cremation, unpaid bills, or any personal purpose.
There are two main types of funeral-related insurance:
Issued by life insurance companies.
Payout goes directly to the beneficiary.
Offers flexibility the beneficiary can use the amount for any end-of-life expenses.
Coverage is generally $5,000 to $40,000.
Available with level or graded benefits (graded means full payout starts after a waiting period).
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Typically purchased through a funeral home in partnership with an insurer.
Funds are used for pre-selected funeral arrangements, with payments going directly to the funeral provider.
Locks in today’s funeral costs and services.
Less flexibility, money can’t be used outside the contracted funeral services.
| Feature | Final Expense Insurance | Pre-Need Funeral Insurance |
| Coverage Amount | $5,000 – $25,000 | Varies as per funeral plan |
| Medical Exam Required | Usually not | Usually not |
| Payout Recipient | Family/Beneficiary | Funeral home |
| Use of Funds | Flexible (any final expenses) | Fixed (pre-selected services only) |
| Inflation Protection | No | Yes, if costs are pre-locked |
| Age Eligibility | 50–85 (typically) | Varies by provider |
Here is a list of pros and cons of buying burial insurance in the USA:
Easy to qualify, minimal health questions or none at all.
Fixed quotes insurance for life.
Quick and direct payout to cover funeral costs.
Helps protect loved ones from financial stress.
Coverage amounts are modest and may not be enough for large debts.
Premiums may be high for the benefit amount if purchased at older ages.
Some policies have a graded benefit period, delaying full payout for 1–2 years.
Burial insurance may be a suitable option if:
You do not have savings or other life insurance to cover end-of-life costs.
You want a straightforward policy with no complex terms.
You prefer to leave a small financial cushion for your family.
You are between 50 and 85 and want guaranteed lifetime coverage without a medical exam.
Here is how you can purchase final expense insurance to insure a life in the USA:
Directly from licensed life insurance companies or agents.
Through online insurance marketplaces.
From funeral homes (for pre-need plans only).
When comparing policies, check:
Coverage amount and premium.
Waiting period (if any).
Payout terms.
Company reputation and claims process.
Yes, a term life insurance plan can cover whatever costs your nominees may choose. The payout from a term life insurance will be paid to your nominee/beneficiary on the successful verification of your untimely death. However, since the term insurance plans provide cover for a limited tenure, you should opt for a plan with the longest cover tenure, as if the plan expires before your death, no benefit will be paid to your nominee. The term insurance payout can help your family take care of their financial needs, replace the household income, and pay for your child’s higher education.
Burial insurance, funeral insurance, or final expense insurance is a practical solution for families looking to avoid the high out-of-pocket costs associated with funerals and burials. It offers peace of mind, especially for seniors and individuals with limited savings, by ensuring their final wishes are honoured without creating a financial burden for their loved ones.
˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25.
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
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+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.
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