What’s the difference between burial insurance and final expense insurance?

Burial insurance and final expense insurance are similar types of insurance that are designed to help cover the costs associated with end-of-life expenses, such as funeral costs, outstanding medical bills, and other expenses that may arise.

The main difference between the two is the amount of coverage they provide. Burial insurance policies tend to have higher coverage limits and are typically more expensive than final expense insurance policies. Burial insurance is usually sold as a whole life insurance policy, which means that it will cover you for the entirety of your life, as long as the premiums are paid, and also grow a cash value over time.

Final expense insurance, on the other hand, is typically sold as a simplified issue or guaranteed issue policy, which is typically more affordable than whole life policies, but also has a lower coverage amount and the coverage may not last for your entire lifetime. It is mainly for the purpose of covering end-of-life expenses, and is often marketed to older individuals or those with pre-existing health conditions who may not be able to qualify for other types of life insurance coverage.

Both types of insurance can be a good option for people who want to ensure that their loved ones are not left with the financial burden of paying for end-of-life expenses, but it's important to carefully review the coverage and the cost of the policy before making a decision. It would also be good to compare with other options like whole life insurance, or traditional life insurance to see which fits your need better.

Last updated: January 10, 2023