What Is The Difference Between Burial Insurance And Life Insurance?

When considering insurance policies to protect your beneficiaries, it’s important to understand the different types of insurance and what your purchase options are. Life insurance is a long-term financial security measure with various options, including term life, whole life, and variable insurance. These policies are intended to replace someone’s income when they pass away.

Burial insurance, also known as final expense or funeral insurance, is a specific type of life insurance meant to cover a person’s funeral costs when they pass. Unlike traditional life insurance policies, burial insurance offers a smaller benefit amount because it focuses on covering short-term expenses. The following table compares the key elements of life insurance, burial insurance, and funeral insurance:

Life InsuranceBurial Insurance and Funeral Insurance
Type of InsuranceTerm, whole, variable, annuity, etc.A specific type of life insurance
Payment StructureLump sum or monthly amountsLump sum almost immediately upon death
Coverage AmountPolicies can be in the millions of dollarsPolicies usually don’t exceed $50,000
Medical ExamOften requiredOften not required
Expiration of InsuranceMay expire before you dieRemains in effect until you die as long as premiums are paid
Cash ValueMay or may not accumulate cash valueUsually accumulates cash value

It’s important to note that burial insurance is not a retirement plan, investment, or meant to cover large expenses like purchasing a home or paying for college. Its primary use is to cover funeral costs, but the beneficiary can use it for any end-of-life expenses like unpaid medical bills, outstanding credit card debt, or various bills accrued in the month of the passing.

Funerals can cost thousands of dollars, which can be a burden on loved ones who are responsible for covering the costs. By including a burial insurance policy in your estate planning, you can ease the process of paying for a funeral. At Lincoln Heritage Life Insurance Company, we offer burial insurance policies that are quick and easy to qualify for because coverage is issued based on answers to health questions on the application. Our policies don’t require a medical exam or physical, and they provide your family with the cash insurance benefit within 24 hours of claim approval.

Burial Insurance Rates
We Sell Burial Insurance
  Cash Payout On Death
  Cash Value (Savings) While Living
...Without The Hassle
 NO Waiting Period
  NO Medical Exam
  NO Expiration
 NO Rate Increases