The short answer
Burial insurance is often worth it if you do not have savings for a funeral and want coverage in place now to help your family be more prepared. It is usually not worth it if you already have enough savings or lifelong life insurance. If you live a long time, you could pay more in premiums than the policy pays out.
Key takeaways
- The main value of burial insurance is coverage that can start now, before you could save the same amount.
- If you live many years, total premiums can exceed the death benefit, so do the math before you buy.
- Guaranteed issue policies usually cost more and pay only a limited benefit for death from illness in the first two years.
- If you already have enough savings or lifelong life insurance, you probably do not need a burial insurance policy.
- Burial insurance is a type of life insurance regulated by your state, not a scam, but ads that promise "free" or "government" benefits are misleading.
When burial insurance is usually worth it
- You have little or no savings set aside for a funeral.
- You want to help your family be more prepared for funeral costs.
- You want coverage in place now, rather than saving the full amount over many years.
- You do not have other life insurance, or your old policy has ended or will end.
- You can get a level policy, with the full benefit from day one.
- You want a fixed monthly cost that fits your budget.
The main value is coverage that can start now. With a level policy, if death happens in the early years, the benefit can be much more than the premiums paid. That is the answer to "why should I purchase burial insurance?"
When burial insurance is usually not worth it
Burial insurance is usually not right for you if:
- You already have savings that could pay for a funeral and final bills.
- You already have life insurance that is large enough and lasts your whole life.
- You can only get a guaranteed issue policy with a waiting period, and you could instead set aside money in an account you control.
- You plan a basic cremation, and your savings would already cover it. See cremation insurance.
- The premium would be hard to fit in your budget. If you stop paying, coverage can end, and you may get back little of what you paid.
Other options include a payable-on-death account or funeral trust, a prepaid funeral plan, or checking whether your current life insurance covers funeral costs.
The math: could you pay more than the policy pays?
Premiums on many burial insurance policies are paid for life. If you live many years after buying, the total you pay can end up higher than the death benefit your family gets. This is more likely if you buy at an older age or buy a guaranteed issue policy, since those premiums tend to be higher.
Example (hypothetical, not a real quote): If a policy's benefit is 200 times its monthly premium, total premiums would equal the benefit after 200 months, or about 16 years and 8 months. If the benefit is 125 times the monthly premium, that point comes after 125 months, or about 10 years and 5 months.
To run your own numbers: divide the death benefit by the monthly premium. The answer is how many months until your premiums equal the benefit. Divide by 12 to get years. Then ask yourself whether you expect to live longer than that, and whether you could have saved that money on your own.
That math is not the whole story. You are also paying to have a set benefit in place, as long as premiums are paid, whenever death happens. With a level policy, a family whose loved one dies in year three receives a benefit much larger than the premiums paid.
Compare the benefit with what a funeral costs. The National Funeral Directors Association reported a 2023 national median of $8,300 for a funeral with viewing and burial, up from $7,848 two years earlier. A funeral with viewing and cremation had a median of $6,280. Neither figure includes cemetery costs. Most burial insurance pays a fixed amount, so a benefit that matches today's prices may cover less later. Get prices from funeral homes near you with our funeral cost calculator.
Is burial insurance worth it for seniors with health problems?
It depends on which type of policy you can get.
- Level policy: Full benefit from day one. Often worth looking at first if you qualify.
- Graded policy: Partial benefit in the early years, then full. Can still be worth it.
- Guaranteed issue: No health questions, but usually a two-year wait for the full benefit if death is from illness, and usually higher premiums. Many of these policies return premiums paid, sometimes plus interest, during the wait.
Different companies ask about different conditions. One may offer a level policy when another offers only guaranteed issue. A Licensed Insurance Agent can help check several. See burial insurance for seniors and pre-existing conditions.
Burial insurance vs. saving the money yourself
| Option | Benefit available from the start? | You keep control? | Main trade-off |
|---|---|---|---|
| Burial insurance (level) | Yes, full benefit from day one | Cash goes to your beneficiary | Premiums may exceed the benefit if you live long |
| Savings or payable-on-death account | Only what you have saved so far | Yes | May not be enough saved yet |
| Prepaid funeral plan | Yes, for the funeral in the contract | No, tied to one funeral home | State protections vary |
| Existing life insurance | Yes, if still in force | Cash goes to your beneficiary | Term may end before you die |
Pros and cons of burial insurance at a glance
| Pros | Cons |
|---|---|
| Money is there from the start (level policies) | You may pay more in premiums than the benefit if you live a long time |
| Premiums are usually fixed for life | Guaranteed issue policies usually have a waiting period |
| Approval usually based on health questions | Costs more per dollar of coverage than larger life insurance policies |
| Cash goes to your beneficiary for any use | Coverage can end if you stop paying |
| Often available at older ages | A fixed benefit may cover less as funeral prices rise |
Is burial insurance a scam?
No. Burial insurance is a type of life insurance, regulated by your state insurance department. But some ads use misleading words. Watch for:
- Claims of a "government" or "final expense program." There is no such government program. See the truth about the final expense program.
- Promises of "free" burial insurance. See is there free burial insurance?.
- Claims of a large Social Security burial benefit. See the $25,000 burial benefit myth.
- Anyone who will not tell you the name of the insurance company, or who is not licensed in your state.
What to ask before you decide
- Is this a level, graded, or guaranteed issue policy?
- At what point would my total premiums pass the death benefit?
- Is the premium guaranteed never to rise, and the benefit never to drop?
- What would I get back if I cancel in year five? In year ten?
- How long is my free look period?
Want to find out more? Request more information and talk with a Licensed Insurance Agent, see what burial insurance costs, or compare with other coverage in burial vs. life insurance.
Common questions
Is it better to save money for a funeral instead?
If you already have the savings, or you have many years to build them, saving can cost less overall. Insurance may make more sense if you want coverage in place now and do not have the money set aside. Some people do both: a small policy now plus savings over time.
Is funeral insurance worth it if I am over 70?
It can be, especially with a level policy and no savings set aside. Premiums are higher at older ages, so the point where premiums pass the benefit comes sooner. Run the math on this page with real figures from a Licensed Insurance Agent, and compare it with what you could save. See over 70.
Can I get my money back if I cancel?
Within the free look period, usually yes, in full. After that, you may get back some cash value, but often much less than you paid, especially in the early years. Ask for the cash value amounts in writing before you buy.
Does the benefit grow with funeral prices?
Usually not. Many burial insurance policies pay a fixed amount. If funeral prices rise, the benefit may cover less than it once did. Some people choose a slightly larger amount to allow for this. Others plan to add savings over time. Review your coverage every few years against current funeral prices near you.
Is burial insurance a scam?
No. It is a type of life insurance regulated by your state. But some ads are misleading, such as claims of a free "government" burial benefit. Check that the company and the Licensed Insurance Agent are licensed in your state, and never give banking details before you see the policy. See the truth about the $25,000 burial benefit.
How much burial insurance do I need?
Start with the cost of the funeral or cremation you want, add final bills, and subtract savings already set aside. The gap is a starting point. Many people also add a little extra for rising prices. Our coverage calculator can walk you through it step by step.
Do I need burial insurance if I already have life insurance?
Maybe not. Check how much your current policy pays, whether it is term life insurance that ends at a certain age, whether coverage from work stops when you retire, and whether loans have reduced the benefit. If it lasts for life and pays enough for your funeral, a second policy may not be needed. See burial insurance vs. life insurance.
Is burial insurance worth it on a fixed income?
It can be, if the premium fits your budget for the rest of your life. If you stop paying, coverage can end and you may get back little. Choose the smallest amount that fills your real gap, and compare it with saving a set amount each month in a payable-on-death account. A Licensed Insurance Agent can show you the premium for different amounts.