Burial Insurance vs Life Insurance

burial insurance vs life insurance

Burial Insurance vs Life Insurance – it turns out that this is more synonymous than a comparison. When people think about burial insurance vs life insurance, it is usually because they would like to take care of final needs after their death and be sure that family members have the financial means to pay the expenses. A lot of times people think that burial insurance is different than life insurance when in reality, burial insurance is a specialty type of life insurance. So rethink burial insurance vs life insurance – it’s really one and the same.


What is burial insurance?

Burial insurance is an insurance plan that is a whole life insurance policy. There are two main types of insurance, term life insurance and whole life insurance.  Term life insurance has a predesignated time frame and when that time frame is over, the insurance expires and must be started completely over. Whole life insurance is different than term primarily because it lasts your whole life with NO EXPIRATION DATE.  

Burial insurance is a whole life insurance product that is designed to pay for a client’s final expenses including burial costs, memorial services, legal expenses, and sometimes remaining debts or leftover monies for family. It is important that burial insurance is a whole life insurance product because when people are planning for taking care of final arrangements, the policy will remain in place and doesn’t expire even as the insured ages or has health problems over time.

Burial insurance vs life insurance – Who needs it?

burial insurance vs life insurance

Those asking about burial insurance vs life insurance are usually folks who are transitioning from having a term policy through their employer or private insurance agent.  As the term policy expires or the employment changes, there is need to be sure some type of life insurance is put in place to protect family members from paying for expensive funeral costs. Assurance Life can help those in this transition time to find the right burial insurance policy to take care of those final expenses and give you and your family peace of mind.

Another segment of people who need burial insurance are those who are completely unprotected and do not have money saved to pay for a funeral. This leaves their family completely on the hook for all expenses that arise after their death. What a difficult place to be- already grieving the loss of a parent or loved one and having to worry about the financial challenge of paying for burial expenses. ANYONE who doesn’t have some type of life insurance policy in place is a person who should consider burial insurance to protect family and friends from paying costly funeral expenses.

Burial insurance vs life insurance –  Is everyone approved?

We have all heard the horror stories of preexisting conditions causing people to be turned down for various types of insurances including life insurance or health insurance. Thankfully, all whole life insurance applicants between the ages of 45-85 are automatically approved for some type of burial insurance. Assurance Life helps most clients- around 90%- get approved for DAY ONE coverage, meaning as soon as the first payment is made, the death benefit is in place and paid out when the insured dies. The remaining few, usually those with serious health challenges, are approved with a waiting period which is most often two years. The good news is even with a waiting period, these few are clients are usually overjoyed to get approved because they have often been previously turned down by other companies.

Burial insurance vs life insurance – How much do you need?

burial insurance health

It is important to get the right amount of burial insurance. Assurance Life can help you find out what the average funeral costs are in your area. Once you have made some decisions about your burial wishes, we can work out the best amount of coverage. The biggest advantage of securing your burial insurance through an insurance broker like Assurance Life is that we have access to numerous companies and can find the exact match for your age and health. Approvals are based on age and health so knowing which company might be a niche for a particular medicine you take or a prior medical issue can save you thousands in premiums and help you get more coverage for less money.  

Cremations average $3000 nationwide and burials are closer to $10,000. Based on this and factoring in other expenses such as memorial services, legal paperwork, and other needs like small debts to be paid, the typical burial insurance plan is between $10,000-$15,000.

Burial insurance vs life insurance – How do you get started?

If you have never applied for whole life insurance, you may be in for a surprise. The application process is quick and easy. Assurance Life can get the necessary information in about 10 minutes. You can get started by clicking to the left to get started with a free quote!  The application includes a few questions to cover the basics like name, address, and age, and then goes on to ask some straightforward health questions that can be answered with a simple YES or NO- nothing complicated. Based on this information, the insurance companies we work with will usually provide approval instantly or sometimes within an hour. Assurance Life only works with A-rated insurance companies such as AIG, Mutual of Omaha, Liberty Bankers Life, and more.

burial insurance for final expenses

Once you are approved, we get you signed up for a payment date of your choice and about 90% of the time, the policy begins with DAY ONE coverage as soon as the first payment is received. A couple amazing features of whole life insurance is that the policy can never be cancelled as long as payments are being made and the monthly premiums are NEVER raised, even as you age or may develop health problems not on your original application. You can rest assured your family will be taken care of once your policy is in place.

Burial insurance vs life insurance- So which will it be?  Turns out you don’t have to decide… you simply need burial insurance if you don’t have a plan in place to take care of your funeral expenses on behalf of your surviving family members.  Assurance Life can help you settle this debate once and for all- it’s burial insurance… taking care of your final needs and family.