Life insurance vs burial insurance

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When it comes to planning for the future, many individuals consider insurance options to protect themselves and their loved ones. Two common types of insurance that often come up in discussions are life insurance and burial insurance. While both serve a purpose in providing financial support, they differ in their coverage and intended use. In this article, we will explore the differences between life insurance and burial insurance, helping you understand which option may be more suitable for your needs.

Life Insurance

Definition: Life insurance is a type of insurance policy that provides a death benefit to the beneficiaries upon the insured person’s death. It is designed to provide financial protection and support to the insured person’s family or dependents.

Coverage: Life insurance policies typically offer coverage for a specified term or the insured person’s entire life. Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years, while permanent life insurance, such as whole life or universal life insurance, provides coverage for the insured person’s entire life.

Benefits: Life insurance policies offer a range of benefits, including income replacement, debt repayment, education funding for children, and estate planning. The death benefit received by the beneficiaries can be used to cover funeral expenses, outstanding debts, mortgage payments, and other financial obligations.

Burial Insurance

Definition: Burial insurance, also known as final expense insurance or funeral insurance, is a type of insurance policy specifically designed to cover the costs associated with a person’s funeral and burial.

Coverage: Burial insurance policies typically provide coverage for funeral expenses, including the cost of a casket, burial plot, headstone, funeral service, and other related costs. The coverage amount is usually lower compared to life insurance policies, ranging from a few thousand dollars to around $25,000.

Benefits: The primary benefit of burial insurance is that it relieves the financial burden on the insured person’s family or loved ones during an already difficult time. It ensures that the costs of the funeral and burial are covered, allowing the family to focus on grieving and honoring their loved one’s memory.

Key Differences

While both life insurance and burial insurance provide financial support, there are several key differences between the two:

1. Purpose: Life insurance is designed to provide long-term financial protection for the insured person’s family or dependents, covering a range of expenses beyond just funeral costs. On the other hand, burial insurance is specifically intended to cover funeral and burial expenses.

2. Coverage Amount: Life insurance policies typically offer higher coverage amounts, which can be used for various purposes such as income replacement, debt repayment, and education funding. Burial insurance policies, on the other hand, provide lower coverage amounts that are specifically allocated for funeral expenses.

3. Underwriting: Life insurance policies often require a more extensive underwriting process, including medical examinations and health questionnaires, to determine the insured person’s eligibility and premium rates. Burial insurance policies, especially those with simplified underwriting, typically have fewer medical requirements and are easier to obtain.

4. Cost: Life insurance premiums are generally higher compared to burial insurance premiums due to the higher coverage amounts and longer policy durations. Burial insurance premiums are usually more affordable, making it accessible to individuals who may not qualify for or afford higher coverage life insurance policies.


In conclusion, life insurance and burial insurance serve different purposes and cater to different needs. Life insurance provides broader financial protection for the insured person’s family or dependents, while burial insurance specifically covers funeral and burial expenses. The choice between the two depends on your individual circumstances, financial goals, and priorities. It is advisable to assess your needs and consult with an insurance professional to determine the most suitable option for you.