Burial insurance, also known as final expense insurance, is a type of life insurance specifically designed to cover the costs associated with end-of-life expenses. Planning for these expenses ensures that your family is not left with the financial burden of paying for a funeral and related costs during an already emotional time. If you’re considering purchasing burial insurance, understanding what it covers is crucial to make an informed decision.
In this blog, we will explore the typical costs burial insurance covers, how it can ease the financial strain on your loved ones, and why it is a smart financial choice for those looking to plan ahead.
What Is Burial Insurance?
Burial insurance is a specialized type of life insurance policy that provides coverage for end-of-life expenses, particularly funeral and burial costs. The coverage amount is generally smaller than traditional life insurance, ranging between $5,000 and $25,000. This is because burial insurance is designed to cover specific expenses rather than provide for a family’s long-term financial needs.
Burial insurance is often more accessible, with simplified application processes and no medical exam requirements in many cases. This makes it ideal for seniors, individuals with pre-existing health conditions, or anyone who wants to ensure their final expenses are covered without the need for a larger life insurance policy.
What Costs Does Burial Insurance Cover?
Burial insurance is intended to provide a lump sum payment to your beneficiaries after your passing. This death benefit can be used to cover a wide range of expenses associated with funeral arrangements, burial, and other end-of-life costs. Here’s a breakdown of the primary costs that burial insurance covers:
1. Funeral Home Services
One of the largest expenses that burial insurance helps cover is funeral home services. These services include the costs associated with organizing and coordinating the funeral, preparing the body, and managing the overall logistics of the service. Funeral homes typically charge a fee for basic services, such as:
- Professional fees for the funeral director and staff.
- Use of the facility for the viewing and funeral service.
- Paperwork related to obtaining death certificates and permits.
Funeral home fees can range from $2,000 to $3,000 depending on the services chosen and the location of the funeral.
2. Casket or Urn
Whether you choose a traditional burial or cremation, burial insurance can help cover the costs of a casket or urn. The cost of a casket can vary widely, depending on the material and design, with prices ranging from $1,000 to $5,000 or more for higher-end models.
If you opt for cremation, the cost of an urn is generally much lower, with basic urns starting at around $100 to $300 and more elaborate ones costing upwards of $1,000.
3. Burial Plot or Cremation Costs
If you or your loved one prefers a traditional burial, the cost of a burial plot is another significant expense covered by burial insurance. The price of a burial plot varies based on the location and the cemetery but can range from $1,000 to $4,000. Some cemeteries also charge additional fees for opening and closing the grave, which can add another $1,000 to $2,000.
For those who choose cremation, burial insurance can also cover the cost of cremation services, which typically range from $2,000 to $5,000, depending on the services included. If the ashes are to be interred in a cemetery, a niche in a columbarium or a burial space for the ashes will also have associated costs.
4. Headstone or Grave Marker
A headstone or grave marker is a traditional way to commemorate a loved one’s final resting place. The cost of a headstone can vary greatly depending on the material and customization. A basic flat grave marker typically costs between $500 and $1,500, while an upright headstone can range from $2,000 to $5,000 or more for intricate designs and high-end materials.
Burial insurance can help cover the cost of a headstone, ensuring that your family does not have to pay for this memorial out of pocket.
5. Transportation Costs
Transportation of the deceased is another expense covered by burial insurance. This includes the cost of transporting the body from the place of death to the funeral home, and from the funeral home to the cemetery or crematorium. The use of a hearse for the funeral procession typically costs between $300 and $600, depending on the distance.
If the deceased needs to be transported over a longer distance, such as to another city or state, additional transportation costs, including air or ground transport, may also be covered.
6. Embalming and Body Preparation
If a traditional viewing or open-casket funeral is desired, embalming is often required to preserve the body. The cost of embalming typically ranges from $500 to $1,000. Other body preparation services, such as dressing, cosmetology, and casketing, may also be necessary, adding another $200 to $400 to the overall cost.
Burial insurance can cover these costs, ensuring that your loved ones are not left with unexpected expenses related to the preparation of the body.
7. Floral Arrangements
Funeral floral arrangements are a traditional way to honor and remember the deceased, but they can also add to the overall cost of a funeral. A standard casket spray may cost between $250 and $700, while additional floral displays for the service and gravesite can range from $50 to $300 each.
While flowers are not a necessity, many families choose to include them as part of the service. Burial insurance can provide funds to cover these expenses, allowing your family to create a beautiful and meaningful ceremony.
8. Obituaries and Memorial Services
Publishing an obituary in a local newspaper or online can also incur costs. Depending on the length of the obituary and the publication, prices can range from $100 to $500. Memorial service costs, such as venue rental or catering for a post-funeral gathering, can also add to the total expense.
Burial insurance provides your family with the flexibility to use the death benefit for these additional costs, ensuring that they can celebrate your life in a way that feels appropriate without worrying about finances.
9. Outstanding Medical Bills or Debts
In some cases, burial insurance can also be used to cover final medical bills or outstanding debts that you may have left behind. While the primary focus of burial insurance is to cover funeral-related expenses, the death benefit can be used at the discretion of your beneficiaries to pay off any remaining financial obligations.
This ensures that your loved ones are not burdened with unpaid bills or debts after your passing.
How We Can Help
At Policy Ocean, we understand the importance of planning ahead and ensuring that your loved ones are protected from financial burdens during difficult times. Our burial insurance policies are designed to cover all the necessary expenses associated with end-of-life arrangements, from funeral services to burial or cremation costs.
We specialize in comparing rates from top insurance providers to help you find the best policy for your needs and budget. Whether you’re looking for a simple cremation plan or a more elaborate funeral arrangement, we can help you find the right coverage to meet your goals.
For personalized assistance and to explore burial insurance options, contact Policy Ocean today. Let us help you secure peace of mind knowing your final expenses are covered.
