What is a burial insurance policy?
“Burial insurance” usually refers to a whole life insurance policy with a death benefit of from $5,000 to $25,000. As its nickname implies, people buy this type of policy to provide money for funeral and burial costs for themselves and/or family members.
Is burial insurance the same as life insurance?
Burial insurance is a type of life insurance designed specifically for final expenses. It's sometimes called funeral insurance or final expense insurance. Paying for a funeral is the only reason why many older consumers may buy a life insurance policy.
Can burial insurance be used for anything?
Its primary use is covering funeral costs, but your 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 your passing (phone bill, utility bills, car payment, etc.).
Does life insurance pay for burial?
Many life insurance policies will pay a lump sum when you die to a beneficiary of your choice. It will pay for your funeral or any other general financial needs of your survivors. The payment is made soon after you die and doesn't have to go through probate.