What is burial insurance?

Answer:

A burial insurance policy is

the same as a final expense insurance policy. It’s a form of whole life insurance that provides, usually, a small face amount of coverage.

Generally, you’ll find these plans offered in face amounts of $2,000-$50,000. They’re often non-medical, simplified issue plans that are easy to put in place when the applicant is in reasonably good health. As simplified issue plans—they can be more expensive, on a cost per $1,000 basis, than other forms of permanent insurance. This is because you’re usually only asked some basic health questions and you’re not given a thorough once over by the insurance provider since a smaller face amount is at stake.

They’re ideal plans though for the very young and the old as well. Good plans for children, they accrue cash value slowly over time and the premiums are guaranteed to remain level. For older people, the risk of mortality increases so the premiums can seem a little high for such a small amount of coverage. But since they’re usually issued up to age 80 and health doesn’t have to be perfect—most people find the coverage affordable and worth it.


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