Burial Insurance vs. Pre-paid Funerals

Oct 2 08:08 2017 matt Schmidt Print This Article

Is there a difference between a Pre-paid funeral and a burial insurance policy???

A Quick Breakdown

Burial Insurance – usually refers to a whole life insurance policy with a death benefit of from $5,Guest Posting000 to $25,000. Individuals buy this type of policy to provide money for funeral and burial costs for themselves and/or family members.

    Prepaid Funeral Plan – are usually sold by funeral homes to allow you to arrange for the type of services and casket you want and pay now with a lump sum or through installments. The home either puts your money in a trust fund with the payout triggered by your death, or buys an insurance policy naming itself as the beneficiary.

The average cost of a funeral was roughly $8,508. Here we will give you a better estimate of some of the costs. Please keep in mind these figures are just estimates of the bare minimum and do not include the cost of cemetery, flowers, obituaries or crematory fees. On top of the previously mentioned costs there are other bills that also need to be considered. Any outstanding bill that has been left by the individual who has passed still needs to be taken care of.

– Credit card debt– Medical bills– Travel expenses for out of town relatives to attend the funeral– Income loss


These items, if not accounted for can add up quickly and can cause some serious issue if your family is not prepared to pay for them.

Pre-Paid Funeral Plans

As we stated above, prepaid funeral plans are sold to individuals by specific funeral homes. This type of plan will allow you the opportunity to pay for the funeral in advance without having all of the details finalized. This option allows you to take the stress off of your family members and have all of the details and planned and ready to go upon your passing. This is a huge benefit when it comes to pre-paid coverage. You take all of the guesswork out of everything for your family members as well. Another huge benefit is that you are able to lock in today’s funeral rates and not have to worry about any type of inflation and pay for it in installments.


One of the biggest drawbacks we see with prepaid funeral plans is the locked in commitment. Some policies may not allow the flexibility you need with transferable options. What happens if you move? Things happen and life changes. This is something you want to really be aware of when initially setting up the coverage. Not only that but it also doesn’t allow your family members to pay for final expenses, it only covers the funeral at that specific funeral parlor.

Another drawback that comes with prepaid funeral plans is they are not nearly as regulated as the insurance industry. More times than not, money that should be allocated for one thing is misspent or goes missing. Your family will also miss out on any cash benefit since the funeral home only pays for things for the funeral.

Burial Insurance Plans


Burial Insurance tends to have some extra perks as compared to prepaid funeral plans. This type of plan usually refers to a whole life insurance policy that helps you and your loved ones to prepare for burial expenses.

The biggest perk with burial insurance plans is that you are able to leave your family members extra money that they can do what they will with AND it’s tax free! Whether they spend it on the funeral and final expenses or set money aside for lost wages, it is up to them.

Your family is also not restricted to a single funeral home. All the decisions are up to them on how your funeral should be held and where, which is nice if you don’t want to be locked into your burial plans for 20 years. With flexible payment plans burial insurance has some of the best perks to be offered.

Some well named companies are Mutual of Omaha, Gerber Life, AETNA, Senior Life Insurance Comapny andLincoln Heritage to name a few.  Every individuals needsa are differnt so it's nice to know there are several options available.


Finding The Best Burial Insurance

Keep in mind that your burial insurance will never be cheaper than it is today. The sooner you have it the sooner you’ll appreciate it. All the more reason to contact Burial Insurance Pro’s!

We have helped many people find the coverage they need at a price that is affordable. We know your options and we help you sort through them – answering any questions you may have along the way. You are not in this alone.

Contact us today to get started!


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matt Schmidt
matt Schmidt

Matt Schmidt Loves to help families find affordable Burial Insurance coveage

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