Is Burial Insurance Worth It?

Is burial insurance worth it if you can just pre-plan your funeral? Let’s take a look at that and other alternatives: 

• Pre-need insurance — This is essentially a pre-paid funeral. Pre-need funeral insurance is a type of permanent life insurance offered by funeral homes. There is some downside to these policies.  A funeral home can change ownership, there may not be a way to change your mind and go with a different funeral home, and the funeral home, not your family, is the beneficiary of these policies. 
• Pre-need funeral trust — Serves the same purpose as pre-need insurance. This trust accrues interest over time but the interest is typically taxable and they’re irrevocable. 
• Self-funded burial — If you’re financially prepared for retirement, you may already have the money you need to afford your funeral. But this isn’t an option if you’re already in your golden years. It needed to be something you’ve been working on so you don’t leave your family unprotected in the event of your death. 

As you can see, there are a number of options available. But perhaps the most flexible and easiest choice is a burial insurance policy. Also known as final expense, this policy’s benefit can be used to pay anything, the money goes to a beneficiary of your choosing, and gives you the flexibility of always choosing your final arrangements.