Is burial insurance worth it?

So called “burial insurance” can be worth it if you’re looking for a simple, life insurance policy without medical exams to help cover funeral expenses and ease financial stress for loved ones. But if you need substantial coverage to replace income or pay off large debts, additional life insurance with a higher face amount might be a better option.

What is burial insurance?

Burial insurance is a small life insurance policy specifically intended to help cover funeral and burial costs. It typically offers a smaller death benefit compared to traditional life insurance, doesn’t require medical exams, and helps your loved ones manage end-of-life expenses quickly after you pass away.

How does burial insurance work?

Burial insurance pays a fixed amount of money directly to your chosen beneficiary upon your death. The benefit is generally purchased to help with funeral and burial expenses, but can be used anything else as the beneficiary sees fit. Coverage is guaranteed with fixed premiums and no medical exam required.

How much does burial insurance cost? 

Costs vary based on age, coverage amount, and policy type, but burial insurance typically ranges from about $20 to $100 monthly. Premiums are usually fixed for life and generally cost less than larger, traditional life insurance policies.

Burial insurance vs. life insurance

Burial insurance is a type of life insurance specifically designed to cover funeral expenses, providing smaller, guaranteed benefits with no medical exams required. Traditional life insurance, however, usually offers a larger payout, intended for broader financial purposes like income replacement, mortgage payments, or college tuition for dependents. While both provide financial protection, burial insurance specifically addresses final expenses. 

Does life insurance help cover funeral and burial costs?

Yes. Life insurance policies pay a lump sum upon your death to a beneficiary, who can use that money toward funeral and burial expenses, along with other financial obligations. The funds typically bypass probate, ensuring quick access when needed.

Do I need burial insurance if I have life insurance?

It depends on your existing coverage and specific needs. If your life insurance coverage is enough to handle all anticipated final expenses and debts, you might not need additional “burial insurance”. But if you prefer guaranteed, dedicated funds specifically set aside for end-of-life expenses, adding burial insurance can be beneficial.

Funeral insurance vs. preneed funeral insurance (prepaid funeral)

Funeral insurance (another term for burial insurance) provides a lump-sum payout upon your death that can be used flexibly for funeral-related costs. Preneed funeral insurance, or a prepaid funeral plan, allows you to directly prepay your funeral expenses to a specific funeral provider. Preneed plans lock in current funeral costs, whereas burial insurance offers greater flexibility but doesn't lock in prices.

Why a burial insurance policy?

Losing a loved one is emotionally stressful and often comes with significant financial burdens. Burial insurance helps cover funeral expenses, easing financial strain on surviving family members. These policies typically cover burial plots, caskets, cremation, memorial services, flowers, transportation, and more. 
 
On average, a traditional funeral or homegoing service with burial cost between $7,000 to $12,000.¹ The average cost of a cremation ranges between $795 – $3200, depending on which funeral home or cremation provider you choose.² Burial insurance or final expense insurance helps loved ones manage these expenses to reduce the chances of financial hardship.

Please note that some life insurance companies—including New York Life—don't sell stand-alone “burial insurance” as a product. Instead, you can buy a separate, smaller life insurance policy to cover final expenses. Roughly six in 10 men own life insurance, while for women it’s less than one in five.³ Financial burdens can continue long after a funeral, so it’s important that you consider all that would need to covered in the event of your passing, including final expenses  needs  before deciding how much life insurance you need in total.

Burial insurance for seniors

Seniors often benefit from burial insurance due to its ease of qualification—no medical exams are required. Premiums are fixed and coverage is guaranteed, making these policies accessible for older adults looking to ease financial burdens on their families.

You should consider adding a burial insurance policy:

If you are single 

Burial insurance prevents passing funeral costs and other final expenses to surviving family members. For broader financial security, a more robust life insurance policy can provide financial assistance to parents, siblings, or other relatives.

If you have a young family

Burial insurance specifically covers your funeral and burial expenses. Meanwhile, whole life insurance can help sustain your family financially by replacing lost income, covering debt, paying college tuition, and securing your family’s future.

If you have an established family

Adding burial insurance ensures that funeral costs won't financially burden loved ones. It complements your broader whole life insurance policy, which supports long-term family financial goals, retirement plans, and debt repayment.

If you’re nearing retirement or are already retired

Supplementing life insurance with burial insurance helps ensure that your final expenses are covered without depleting retirement savings or leaving debt behind. It provides immediate funds for funeral expenses, preserving your family’s financial security and peace of mind.  

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¹“Securing Peace of Mind: Thoughtful planning for Funeral and Burial Costs,” MMBB A Financial Services Ministry, May 8, 2025. https://www.mmbb.org/resources/church-executive-articles/2025/may/securing-peace-of-mind-thoughtful-planning-for-funeral-and-burial-costs

²Sara Marsden-Ille “What is the average cost of a cremation?” US Funerals Online, April 16, 2025. https://www.us-funerals.com/what-is-the-average-cost-of-a-cremation/

³Amy Danise “Life Insurance Statistics, Data and Industry Trends,” Forbes. https://www.forbes.com/advisor/life-insurance/life-insurance-statistics/

New York Life Insurance Company(NY,NY)