Burial insurance, commonly referred to as funeral or final expense life insurance, is a type of whole life insurance policy with a death benefit designed to cover end-of-life expenses and funeral costs. It can be an accessible, affordable alternative to other life insurance policies, especially for older adults.

While you may feel uncomfortable discussing end-of-life plans, a burial insurance policy can offer comfort in knowing that your loved ones won’t have the added stress of finding a way to pay for funeral expenses after you’re gone.

How does burial insurance work?

Like other life insurance policies, burial insurance works by paying a death benefit to your chosen beneficiaries when you pass away. However, since burial insurance is a type of permanent life, the plan can also accrue cash value in an account that the policyholder can use during their lifetime, should it be needed.

A burial life insurance policy is meant to pay for end-of-life expenses, funeral costs, and burial. However, it’s ultimately up to your beneficiaries to decide the most impactful way to use the money, whether for funeral expenses, to cover medical or credit card debt incurred at the end of your life, or otherwise.

Since you won’t need to undergo a medical exam, you can follow a few quick steps to get burial insurance.

1. Choose the right burial insurance policy

Insurance providers usually offer several types of burial insurance to meet a variety of situations, budgets, and needs. The two most common types of burial insurance are:

• Simplified issue

Simplified issue plans take medical history into account. While they don’t require a full medical exam, they do ask applicants to answer questions about medical history and lifestyle. Terminal illness or severe health conditions could disqualify applicants from simplified issue plans.

• Guaranteed issue

If you have some health issues that could prevent approval, you may want to consider a guaranteed issue plan. This policy doesn’t require a medical exam and can be a good option for older adults with health conditions that would make it difficult to qualify for other life insurance.

RAPIDecision® Guaranteed Issue provides a death benefit of up to $25,000, and premiums stay the same throughout the policy.

2. Submit a life insurance application

Once you identify a policy that best fits your needs, you’ll want to apply for an appropriate coverage amount. Burial insurance payouts are smaller than other types of life insurance, with a maximum coverage amount of around $40,000.

While burial insurance has a streamlined application process, applicants must still provide personal information and, for simplified issue policies, some health information as well.

3. Await approval and pay premiums

The time it takes to approve a burial insurance application will vary depending on the insurer and specific policy. For example, you may be able to get approval for FidelityLife’s RAPIDecision® Final Expense policy the same day, while it may take longer for other insurers to issue a decision.

If your application is approved, you’ll begin paying monthly or annual premiums to keep your policy active. The amount you’ll pay may vary depending on the policy type, coverage amount, and answers to health questions, if applicable.

4. Enjoy peace of mind knowing loved ones are protected

The thought of leaving loved ones behind can be overwhelming. But with burial insurance, you can take comfort in knowing that the people who matter most to you won’t struggle to cover any expenses when you go. Conversations about life insurance can be difficult, but the right policy can help to provide security and peace of mind, allowing you to savor each moment with your loved ones.

Who should consider burial insurance?

Many types of life insurance are designed to help cover expenses like mortgages, childcare, college tuition, and more. However, as you grow older and your expenditures change, your life insurance needs may also begin to change.

If you’re between 50 and 85, you may have already paid off your mortgage and not expect to leave many debts behind. In that case, a burial insurance policy might be the perfect fit for your needs.

Burial insurance is also an affordable option for seniors with limited budgets or a small amount of savings. Since burial insurance policies have lower coverage amounts than traditional life insurance policies, they may be an economical alternative to other types of insurance that could become more expensive to secure as you grow older.

Guaranteed issue burial insurance could also be an opportunity for you to secure coverage if you have health issues that disqualify you from other policies. A guaranteed issue policy offers a path to insurance coverage for those with health issues so their families can still have financial security.

In some cases, even individuals with assets that could cover their funeral costs may still benefit from burial insurance. While it typically takes time for beneficiaries to access funds from an estate, burial insurance offers an immediate payout that can cover funeral expenses quickly, which may include:

• Cremation costs
• The cost of an urn or casket
• Ceremony-related expenses like officiants
• Funeral home costs
• End-of-life medical or hospice bills
• Outstanding debts
• Travel costs for family members attending a memorial service

Is burial insurance worth it?

Burial insurance can be a valuable investment because it safeguards your loved ones from grappling with the significant price of end-of-life arrangements. According to the National Funeral Directors Association, funerals cost $9,135 on average in 2022. This figure includes burial and a vault, which cemeteries usually require. However, it does not reflect the many other expenses accompanying a funeral, including a cemetery plot, floral arrangements, obituaries, grave markers, travel, or reception so your loved ones can celebrate your life.

Burial insurance like Fidelity Life’s RAPIDecision® Final Expense plan offers up to $40,000 in coverage, so your loved ones will be able to focus on spending their time executing your wishes without having to worry about the cost of a funeral. With Fidelity Life, getting a quote for burial insurance is fast and simple. Contact a licensed insurance agent or get a life insurance quote online today.