The short definition
Burial insurance is a whole life insurance policy with a small face amount — usually $5,000 to $25,000. When you pass, the insurance company pays that amount in cash to the person you named, your beneficiary. They can use it right away.
It goes by several names: burial insurance, funeral insurance, final expense life insurance, or life insurance for seniors. They all describe the same kind of policy.
On the whole life policies we offer, your rate stays the same for life and the policy doesn't expire as long as premiums are paid. Your agent confirms this for the specific policy before you apply.
The three kinds, in plain words
Which kind you qualify for depends on a few health questions. There's no medical exam — just a few health questions on the phone.
Level benefit
The full amount is payable from the first day. This is the most common outcome, and it's available to many people with health conditions that are under control.
Graded benefit
The full amount is payable after a waiting period, usually two to three years. If you pass before then, the policy returns the premiums you paid plus interest. Accidental death is usually covered in full from day one.
No health questions, with a waiting period
Often called guaranteed acceptance. No health questions at all, for applicants within the carrier's age range (often 50–85). These policies always include a waiting period before the full benefit is payable — usually two to three years — and they cost more per dollar of coverage. They're the right answer for some people, but not the first one we'd look at.
What the money can be used for
Anything. The benefit is paid as cash to your beneficiary, not to a funeral home. Families most often use it for:
- The funeral, burial or cremation
- A headstone, a reception, travel for family
- Final medical bills
- Credit cards, utilities, the last month of rent
The benefit is a fixed amount. It pays what it pays — it isn't tied to a particular funeral or price list. That's why we help you pick an amount that fits what you actually want.
Burial insurance vs. a preneed plan with a funeral home
A preneed plan (also called a prepaid funeral) is a contract with a specific funeral home. You choose the goods and services now and pay for them in advance. It's a good fit if you know exactly what you want and where.
Burial insurance pays cash to a person you choose. Your family can use any funeral home in any state, and anything left over is theirs. It's a better fit if you want flexibility, or if you're not sure where you'll be.
We'll be honest about which makes more sense for you. If a simple cremation is what you want, Leaf Cremation offers prepaid cremation directly — and sometimes that's the better answer.
Burial insurance vs. the life insurance you already have
Many people already have some life insurance. Here's why it often isn't there when the funeral bill comes:
- Term life insurance expires. Most term policies end at a set age or after 10, 20 or 30 years — often right around retirement.
- Group life ends at retirement. Coverage through an employer usually stops, or shrinks sharply, when you leave the job.
- Your existing policy is probably spoken for. It may be meant for a spouse's income, a mortgage, or the kids. Burial insurance keeps the funeral money separate.
If the life insurance you have already covers this, we'll tell you. Read the full comparison →