“I already have life insurance. Do I need this too?”
It’s one of the first questions we hear, and it’s a good one. Sometimes the answer is no. Here’s how to tell.
First, what burial insurance actually is
Burial insurance is a small whole life insurance policy that pays your family in days. It’s also called funeral insurance or final expense life insurance. Same product, different names.
What makes it different from most other life insurance:
- It’s small. Coverage is typically $5,000 to $25,000.
- It’s whole life. It doesn’t expire after a set number of years, as long as premiums are paid.
- The rate doesn’t go up on most of these policies.
- No medical exam. Just a few health questions on the phone.
- It’s built to pay quickly, so the money is there when the funeral bill is due.
The money goes directly to the person you choose. They can use it for the funeral, a medical bill, or anything else.
The life insurance people usually already have
Most people who ask us this question have one of four kinds of coverage. Each one has a weak spot when it comes to paying for a funeral.
1. Term life insurance
Term life covers you for a set number of years, often 10, 20 or 30. It was likely bought to protect a mortgage or young children.
The weak spot: it ends. Many term policies expire in a person’s 60s or 70s, right when a funeral becomes more likely. Renewing at that age, if it’s allowed at all, can cost many times the original price.
What to check: the expiration date on your policy. If it ends before age 85 or 90, it may not be there when your family needs it.
2. Life insurance through work
Many employers provide group life insurance, often one or two times your salary.
The weak spot: it’s usually tied to the job. When you retire or leave, the coverage often ends or drops sharply. Some plans let you convert to an individual policy, but the price can be high.
What to check: call your former employer’s benefits office or read your retirement paperwork. Ask whether you still have coverage and how much.
3. A large policy already spoken for
Some people have a large whole life or universal life policy. That’s good news.
The weak spot: it’s often earmarked. It might be meant to pay off the house, support a spouse, or leave something to the grandchildren. If the funeral comes out of it first, that plan shrinks.
There’s also timing. A large claim can take longer to process, especially if there are questions about beneficiaries or paperwork.
What to check: who the beneficiary is, how much the policy pays, and what your family expects to use it for.
4. A policy no one can find
This happens more than you’d think. A policy was bought years ago, the paperwork is in a drawer somewhere, and no one in the family knows it exists.
What to check: gather your policies in one place and tell your family where they are. If you’re not sure a policy is still in force, call the company.
Side by side
| Term life | Work life insurance | Burial insurance | |
|---|---|---|---|
| Typical amount | Large | One to two times salary | $5,000 to $25,000 |
| Does it expire? | Yes, at the end of the term | Often at retirement | No, as long as premiums are paid |
| Rate | Level during the term | Set by employer | On most policies, doesn’t go up |
| Medical exam | Often | Usually not | No, just a few health questions |
| Main purpose | Income, mortgage | Employee benefit | Funeral and final bills |
When you probably don’t need burial insurance
We’d rather tell you this than sell you something you don’t need.
You may not need it if:
- You have permanent life insurance that won’t expire, and
- It’s large enough to cover a funeral plus what it’s meant for, and
- Your family knows it exists and who the beneficiary is.
You also may not need it if you have money set aside in a separate account, with a payable-on-death beneficiary, that won’t get spent on something else first.
When it usually makes sense
Burial insurance tends to fit when:
- Your term policy expires before you’re likely to need it.
- Your work coverage ended at retirement.
- Your existing policy is spoken for, and you don’t want the funeral to come out of it.
- You have health conditions that make larger coverage hard to get.
- You simply want a separate amount set aside only for final expenses, so there’s no question.
What it costs, in typical ranges
As a typical range, many people in their 60s pay roughly $30–$70 a month for $10,000 of coverage. People in their 70s pay roughly $45–$110. These are illustrative ranges, not quotes.
What moves the price: age, tobacco use, health and the amount of coverage. A licensed agent gives you the exact figure. You can see more on our cost page.
Health and the three kinds of policies
- Level: full benefit from day one. For people in reasonably good health.
- Graded: full benefit after two to three years. Before that, the policy typically returns premiums paid plus interest.
- Guaranteed acceptance: no health questions. Always graded, with a two-to-three-year waiting period before the full benefit is payable, and it costs more per dollar of coverage.
Most families qualify for one of these, including with health conditions.
How much is enough?
A funeral with burial in Georgia commonly runs $8,000 to $12,000. A cremation with a service commonly runs $6,000 or more. We break down those numbers in How much does a funeral cost in Georgia?
You don’t have to match every dollar. Even a policy that covers part of the cost, paid in days, keeps your family from scrambling.
Why we look at this differently
Leaf Cremation has served more than 5,000 Georgia families. The people behind Leaf Planning are the ones at the table when a family can’t pay, and often there was a policy. It had just expired, or ended with a job, or couldn’t be found.
That’s why we ask about your existing coverage first. Learn more about us.
Talk it through with a licensed Georgia agent
If you’re not sure whether your current life insurance is enough, leave your name and number below. A licensed Georgia agent will call you, look at what you have, and tell you plainly whether you need anything more.