Burial Insurance vs Life Insurance Their Difference’s

First and foremost, when it comes to burial insurance vs life insurance you are probably wondering what is the difference? The truth is there is not much of a difference at all.

Burial insurance is final expense whole life insurance, burial insurance is just a marketing term for those plans. It is important to note that burial insurance is not the same as term life insurance.

Burial insurance(final expense insurance) is a whole life policy which means it never expires. Term life insurance only lasts for the terms duration(10, 20, or 30 years) then it expires.

Any type of life insurance can be used to pay for your funeral however final expense insurance is designed specifically for covering end of life expenses. This would include burial, cremation, funeral and other final expenses.

Now burial insurance is the perfect product for paying funeral expenses and making sure the funeral home gets their money quickly.

All life insurance covers death however different products are designed for different reasons based on what the needs are of your family at the present time.

In this article we will highlight the differences between burial insurance and life insurance so you can make an informed decision on what is best for your family.

Burial Insurance vs Life Insurance Side by Side Comparison

When it comes to burial insurance vs life insurance it is important to have a visual comparison. This comparison can help you better understand the differences between life insurance and burial insurance to make an informed decision.

Below is going to be a table listing these differences side by side to help you better understand burial insurance vs life insurance.

Features & Requirements	Life Insurance	Burial Insurance
Definition	Broad term encompassing various types (term,universal,whole,final expense,indexed universal life insurance)	Final Expense Whole Life Insurance
Coverage Duration	Term or permanent	Permanent
Face Amount Range	$50,000 – $1,000,000 or more	$1,000 – $50,000
Purpose	Various purposes (income replacement, debt coverage, mortgage protection etc.)	Cover funeral and burial expenses
Medical Exam Requirement	Often required for higher amounts of coverage	No medical exam required
Underwriting	More strict due to higher coverage amounts	Liberal underwriting for seniors
Additional Riders	Available, depending on the policy	Available, such as accidental death, grandchildren, etc.
Cash Value	Varies based on policy type	Builds cash value
Payout Timing	Varies; can be immediate or based on policy terms	Typically pays out within 24 – 48 hours of death certificate
Beneficiary Usage of Payout	Flexible usage (burial, income replacement, inheritance, mortgage protection etc.)	Specifically for funeral expenses and related costs
Qualification Criteria	Health Assessment, age, lifestyle factors etc.	Health questions and checking of medical information

What is the Difference between Burial Insurance and Life Insurance?

Burial insurance(Final expense, cremation and funeral insurance) is simplified issue whole life insurance, guaranteed issue life insurance or prepaid burial.

This type of insurance is permanent coverage that lasts your entire life with a face amount of $1,000 to a maximum of $50,000. The life insurance pays a lump sum death benefit to your beneficiary when you die. Your beneficiary will then use this money to pay for the total cost of your funeral.

It is also reffered to as funeral insurance and cremation insurance. The benefits can be used for anything from burial, cremation, paying off debts or leaving money for kids or grandkids.

They offer additional riders for the insurance as well depending on the carrier. These riders can be any of the following:

• Accidental Death and Dismemberment Rider
• Grandchild Rider
• Accelerated Living Benefits Rider
• Children Riders
• Nursing Home Waiver of Premium Rider

Burial Insurance Companies:

The best life insurance companies for seniors that offer a burial policy for seniors are as follows:

• Mutual of Omaha
• Greek Catholic Union
• American Amicable
• Prosperity Life
• Royal Neighbors of America
• Aetna
• Guarantee Trust Life
• Great Western
• American General
• Gerber
• TransAmerica

These companies and their policies do not require a medical exam to qualify. You answer their health questions and they check your Medical Information Bureau Report and Prescriptions based on your Social Security Number.

If everything is clear according to their underwriting you are approved instantly right over the phone in minutes.

Life Insurance

Life insurance is a much more broad term and can refer to any type of life insurance whether it is term life insurance, universal life insurance or final expense life insurance. This is the key difference between the 2 terms.

So burial insurance refers specifically to final expense whole life insurance and life insurance refers to term life insurance, universal life insurance, whole life insurance, final expense insurance or index universal life insurance. This is why the marketing terms exist in the first place.

If you are looking to protect your mortgage if you die in your younger years. This would be mortgage protection insurance which is term life insurance.

The thing with term, universal, indexed universal life insurance products is that they all are a little more difficult to qualify for because they offer such high faceamounts. So naturally the insurance companies want their candidates to be healthy.

Burial insurance is designed for seniors ages 45 – 90. This means seniors do not have to do a medical exam and the insurance companies understand that as people get older health problems come with it.

Burial Insurance(Final Expense Insurance)

• For Seniors ages 45 – 90
• No Medical Exam Liberal Underwriting
• Faceamounts of $1,000 – $50,000

Life Insurance(Term Life, Indexed Universal Life, Guaranteed Universal Life, Annuities)

• For Young Adults or Seniors
• Medical Exams Term,UL,IUL
• Non Medical Exams for FE
• Face amounts of $50,000 – $1,000,000 or more

Are They The Same?

Yes they are, burial insurance is just final expense whole life insurance.

Final expense life insurance is used for end of life burial or cremation expenses. Life insurance is a spectrum of products with different purposes. Burial insurance pays out a lump sum death benefit to the named beneficiary on the policy just like any other life insurance product.

The difference being burial insurance lasts forever and builds cash value. It is designed to pay out within 24 – 48 hours of a death certificate so the funeral is paid for.

Different Terms Same Meaning

Yes, death insurance is the same as life insurance. Just different marketing terms used for them. They have the same function, to provide a cash death benefit to the named beneficiary of the policy holders choice.

The beneficiary can use this money for a replacement of income, burial, or as an inherticance for children or grandchildren. How the money is used is entirely up to the beneficiary on the policy. Life insurance gives your family the peace of mind they deserve and serves as a gesture of love.

It guarantees your family’s financial well being when you die so they are not left with any burdens or debts that can ruin their credit and hurt them for years to come.

Burial Insurance vs Life Insurance Needs Determine Which to Get

If you have any of the following needs below funeral life insurance is what you need.

• No money saved to cover burial expenses
• Your current life policy is not enough coverage for funeral expenses
• You want to leave behind an inheritance or legacy gift

If you have any of the following needs below a regular term or universal life policy is what you need.

• Assets with a current loan balance(mortgage, cars, liens and other financed items)
• Your loss of income is 50% or more for your household and you need replacement income
• You want to build extra retirement savings(Indexed Universal Life Policy best option)

Conclusion

Burial insurance and life insurance are the same thing it is just that burial insurance is final expense insurance or at least it should be if you are working with the right company. This is why it is important to work with a national independent broker like us to shop multiple companies for you to guarantee the best rate available. That being said there is no real rivalry when it comes to burial insurance vs life insurance.