yes, you can have two funeral insurance policies; they're just called different things

Can You Have Two Funeral Policies?

Yes, you can have two funeral policies—either a burial or pre-need plan with a full life insurance policy or a burial policy with a pre-need plan.

This breaks down to 6 different combinations. Combining funeral policies provides an excellent opportunity to cover both funeral costs and other expenses, from medical bills to mortgages. By having two different plans, you can cover those significant debts without subtracting funds for funeral arrangements. 

Combining Burial and Final Expense Insurance

Burial insurance is a reasonably small policy in comparison to other options. Payouts can be as large as $50,000, and, unlike pre-need plans, the beneficiary can be used to cover necessities outside of the funeral costs. 

Final expense plans are larger than burial plans but smaller and easier to qualify for than whole and term life policies. Payouts can range anywhere from $25,000 to $80,000, depending on your health. 

These policies can cover funerals if so chosen but are typically used to cover the policyholder’s debts, such as estate fees and/or co-signed debts.

When you combine these plans, you have a lot more flexibility and security than you would with one of them on their own. For instance, burial policies are small—with a final expense plan; however, they are great to cover funeral costs, with any additional funds added to the final expense plan’s debt coverage.

Burial Insurance with a Whole Life Policy

Burial and whole life insurance together work very similarly to the previous combination. Whole life policies are among the largest on the market, with payouts ranging higher than $100,000. 

Like final expense plans, whole life covers the policyholder’s remaining debts, including mortgages, medical bills, etc. However, they are much more challenging to qualify for—you must be relatively young and in good health to enroll in a whole life policy.

Combining burial and whole life insurance would reduce the burden of planning on the policyholders’ loved ones. Whole life can be used to cover funeral costs, but that is not the plan’s intention, often leaving beneficiaries the burden of funeral arrangements after the policyholder’s death.

The policyholder may make the necessary funeral arrangements by adding burial insurance, leaving the whole life plan to cover those larger, more intrusive debts. This way, their loved ones do not have to make the arrangements themselves with the money planned to go towards said debts.

Term Life Insurance with a Burial Funeral Policy

Term life insurance also has a larger payout than final expense, burial, or pre-need insurance. Unlike whole life, term life lasts for a set number of years before the policy must be renewed or canceled.

They are intended to cover the same debts as whole life and final expense plans—and so, like those plans, they are also not intended to cover funeral costs (though they can if you so choose). 

And so, if you want to remove the burden of planning from the beneficiary, combining burial and term life insurance can allow you to make the necessary funeral payments and arrangements without subtracting from the term life payout.

What Is a Pre-Need Policy? Can it be Combined with Final Expense Insurance?

Pre-need insurance is somewhat similar to burial insurance. Unlike a burial policy, however, these plans are strictly used for funeral costs.

Generally, they do not offer much (if any) flexibility for how the payout is allowed to be used. Pre-need plans are arranged directly with a funeral home—so the entire payout goes to the funeral home, no matter what.

On its own, then, pre-need plans do not work very well. They do, however, offer a lot of stability. When you set up a pre-need plan, you/the policyholder will arrange every detail of the funeral, down to the flowers. You will have, then, great peace of mind with a pre-need plan.

You’ll miss out on some of the flexibility and payout options you would have with a burial plan if you choose a pre-need plan. However, if your final expense plan can cover all of the policyholders’ other debts, you might not need the extra funds from a burial plan.

If that’s the case, a pre-need plan is a great way to plan and pay for the entire funeral with little interference.

Pre-Need with Term Life Insurance

However, there are a few potential hazards with a pre-need plan. The entire payout goes to the funeral home—so, if for any reason your arrangements decrease in price, you will still have to give them the same amount.

If you have additional debts you want your funeral insurance to cover that your life insurance plan does not, you will be stuck. Like a pre-need plan paired with final expense, if you invest in the right term life plan, this will hopefully not be an issue.

Whole Life Insurance and a Pre-Need Policy

Whole life insurance can also be combined with a pre-need plan if you so choose.

The same risks and potential rewards still apply to this combination—you can pay for and arrange your funeral without subtracting from your whole life payout, at the risk of losing money to the funeral home you’re working with.

Get a Free Quote From Senior Life Services!

Combining insurance policies is a big deal. It’s a great option to relieve the burden of debt from loved ones, but it comes with many questions. How can you be sure you have the best deal? What combination of coverage works best for you and your family?

Senior life Services offers peace of mind and protection from final expenses. Our licensed, dedicated, and friendly insurance professionals will work with you to provide a free and easy quote

To get the lowest price possible on your insurance policies, give us a call today at (800) 548-3249.


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