The median cost of a funeral ranges from $5,000 and $10,000¹
Purchasing a burial insurance policy (or a small life insurance policy designed to cover final expenses) can help prevent the passing of any substantial debt to surviving family members. In addition, a more robust whole or term life insurance policy can help you provide financial support to aging parents or siblings.
Burial insurance covers funeral and burial expenses, whole life insurance can help give your family members the resources they need to maintain their lifestyle. Life insurance can replace some or all of your income, pay off debts, help pay college tuition, help fund your spouse’s retirement, and cover final expenses.
Whole life insurance can be an important part of your overall retirement planning. Additional insurance to cover final expenses can help ensure that your loved ones will not be burdened with debt should you pass away.
Supplementing your life insurance policy with burial insurance will allow you to settle your affairs by covering funeral costs and unexpected final expenses like medical bills. A more robust life insurance policy will protect the financial future of your family and preserve the retirement you and your spouse worked so hard for.
No, but they are similar. In fact, a burial insurance policy is a smaller whole life policy that can be used to help your loved ones pay for your final expenses. It is considered a type of life insurance policy, but it usually offers a smaller benefit amount than traditional life insurance, since its purpose is very specific.
Yes, life insurance policies will pay a lump sum when you die to a beneficiary of your choice. That money can be used to pay for your funeral or for any other general financial needs of your survivors. The payment will be made soon after you die, and it doesn't have to go through probate.
* National Funeral Directors Association, 2019