in most states, you can buy burial insurance from a funeral home

Do Funeral Homes Sell Burial Insurance?

In most states, you can buy burial insurance from a funeral home. You may also, however, purchase it from an insurance company. 

And, if you’re purchasing a burial plan from a funeral home, make sure you aren’t buying a pre-need or prepaid insurance plan—we will explain the difference between the two to ensure you are signing up for the right plan.

No matter your life stage or who you’re considering a burial plan for, you should know the ins and outs of buying it from a funeral home confidently. Don’t be taken advantage of—here’s everything you need to know about burial insurance and buying it from a funeral home.

All You Need to Know About Burial Insurance

Funerals cost a lot of money—according to the National Funeral Directors Association, the national median cost of a funeral with a viewing and burial cost is $7,640. For cremation, with a cremation casket and urn, the average is $6,645.

Burial insurance covers all of these expenses and allows you to plan the funeral ahead of time. Think of your typical life insurance policy—you pay a monthly premium and receive a specified payout once the policyholder passes away to be used as they will. 

Burial insurance is like a smaller, more specific version of a life insurance policy. The policyholder will decide the arrangements they will want and establish a plan with a payout that will accommodate it. They will choose a beneficiary to receive this payout to put towards these costs and whatever other payments the policyholder designated.

The Difference Between Burial and Pre-Need Insurance

If burial insurance is like a life insurance policy, then pre-need insurance is simply a funeral plan. Instead of the payout going to a chosen beneficiary, the death benefit of a pre-need plan goes directly to the funeral home with which it was arranged.

Yes, funeral homes may sell burial insurance—however, do not get it confused with pre-need. More homes are likely to sell pre-need than burial insurance, but some may try and market their pre-need policy as a burial plan.

Pre-need plans will run you the risk of overpaying for coverage that will never reach the hands of you or your loved ones. If you purchase a pre-need plan and make payments on it for 10 years, you will likely have paid more than your established payout and will simply be handing over money to the funeral home.

And, if you overpay or your beneficiaries want to use the additional funds for anything besides the funeral, you’ll be stuck. Unlike burial insurance, pre-need plans are non-refundable and non-transferable.

If you’d like to learn more about pre-need plans, check out our article on the topic.

Call Senior Life Services for a Free Insurance Quote

Purchasing a final expense insurance plan may leave you with many unanswered questions and fear for the future of yourself and your loved ones. 
That’s why we work with 15+ insurance carriers to get you a quote on the lowest cost insurance on the market. If you’re ready for your free quote, call Senior Life Services at (800) 548-3249.


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