How Insurance Can Help With Funeral Costs in the United States

• Handling the body: A traditional burial includes embalming and preparing the body. Morticians may also provide makeovers and hair styling services. Alternatively, the funeral home will cremate the body. 
• Caskets, urns, and vaults: Burials require caskets, which range in price depending on the quality and decorations. Some people seal the casket with a vault before burying it. Urns typically cost less than caskets and vaults, with varying prices depending on the product’s elaborateness. 
• Death certificates: Some funeral homes handle the death certificate as part of the overarching service. Each additional copy might incur a separate fee. 
• Viewing service: Some families want to look at their loved one’s bodies one last time. The time slot allotted and setup incur additional costs. 
• Funeral service: Personnel involved in the funeral, such as the hearse driver and officiant, may require payment for organizing and handling the main service. 
• Burial service: Digging the grave, lowering the casket, and filling the hole can take hours and lots of energy. Plus, some families want a graveside service as a final goodbye. 
• Graver marker: Like other funeral products, grave markers vary in price. The larger and more elaborate the marker, the higher the expense. 
• Burial plot: Finally, many people purchase burial plots long before their deaths to ensure final resting places near other deceased loved ones. These plots can cost thousands of dollars. 

Universal coverage is permanent, flexible, and has a high return on investment. You can change your premium and death benefits according to your budgeting needs. You can also borrow or withdraw money from your death benefit without negatively impacting the benefit. 

Like universal life insurance, whole life is another type of permanent life insurance. Its expensive premiums never fluctuate as long as you hold the policy. Purchasing a whole life policy guarantees cash value that can cover funeral costs, medical debts, and bills. 

However, it doesn’t offer the same level of flexibility for withdrawals as universal policies. Providers will also base your premium rates on:

• Age
• Health status
• Sex
• Substance use
• Occupation
• Family medical history
• Overall lifestyle

These factors influence your lifespan. Therefore, they dictate how much the provider can expect from your premiums. 

Most term policies only cover their policyholders for up to 30 years. Once the term ends, you can either renew your policy or choose a different provider or coverage type. People prefer this policy if they have a strict budget or find themselves in between policies. 

However, you receive no payout or benefit once the term ends. Therefore, term life policies only cover funeral service fees if the policyholder’s death happens within the agreed-upon term.  

The Insurance Information Institute defines burial insurance, also called funeral insurance coverage, as a type of whole life insurance policy that pays a substantial death benefit to go toward funeral expenses. Many life insurance policies include varying levels of death coverage. However, a final expense policy specifically covers expenses associated with funerals, such as burial or cremation costs. 

You can purchase a final expense policy alone. Alternatively, shop for more comprehensive coverage options that also offer generous funeral coverage. Some burial policies can cover a whole family’s funeral expenses, alleviating the stress associated with hashing out separate finances for all your loved ones.  

Like final expense insurance, pre-need policies offer just enough to cover most or all of your funeral expenses. However, you purchase this coverage specifically from a funeral home. It will only handle services that the funeral home provides. Therefore, your family must source all funeral services from the pre-need provider. 

• Health insurance: You might receive health insurance from an employer or purchase a policy on your own. Either way, it only covers health services during your life. You can use it to circumvent medical debt and ensure your family members receive your complete death benefit. 
• Homeowners insurance: If you own a home, you’ll purchase this type of insurance to cover any damage that occurs on your property. 
• Renters insurance: This coverage type protects the policyholder’s belongings while they rent a living space. 
• Vehicle insurance: Whether you drive a car, truck, or motorcycle, you will purchase varying levels of insurance to cover wrecks and related expenses. 

• Payout timelines: Your family should not expect an immediate benefit payout upon your death. The provider must review the policy, death circumstances, and benefits before paying them forward to the beneficiaries. Prepare your family members for these issues beforehand. 
• Advance options: Although payouts may take a while, your family can still get financial support from advanced funding services. These companies promptly pay your beneficiaries a benefit advance. Once your family receives the benefit, they pay the company back. 
• Beneficiary assignment and reassignment: Your plans may change over the years. You may lose contact with some beneficiaries while others’ capabilities to oversee your last wishes may shift. Assign new beneficiaries as needed. 
• Policy reviews and changes: Like with beneficiary assignment, policyholders should occasionally review their funeral insurance policies and make changes accordingly. You might add or change insurance providers over the years as you see fit. 
• Digital insurance tools as a resource: Digital platforms like Insurdinary can help you find comprehensive plans with affordable rates. They can also ensure you understand your policy details. Take advantage of these resources to protect your end-of-life investments.