Pre-Need Funeral Insurance: Is It Really Necessary?


Burial insurance has been around for a long time. It provides money to your family members for the final expenses upon your death, usually tax-free. This insurance can be used to pay for a mortgage, home equity loans, funeral expenses, taxes, and other expenses. This insurance can also be used as an investment tool by protecting your family from high interest rates on their inheritance.

There are several ways to save money with burial insurance. Many insurance companies provide you with an account balance that allows you to divert funds to various accounts depending on how much you want to get paid out when you pass away. In order to take advantage of this type of savings, it is best to set up a burial account with your local social security agency.

With burial insurance, your family will receive payment benefits even if your burial costs are paid for by your life insurance policy. If your funeral costs are paid for entirely by your life insurance policy, then your beneficiaries will only get a payment from your casket sales. Your casket sales agent will work with your insurance company to find the highest premium that will allow them to sell your casket. Because burial insurance covers expenses, your family will not need to pay towards the balance of your debt in case you pass away. In most cases, this means you will have extra money in your pocket after you die to pay for all the things you always wanted to do, such as home improvements, college tuition, and your dream retirement.

Another way burial insurance works is when your body is not buried. If you pass away prior to having your cremation expenses paid for, your family will be able to pay for those expenses out of their own pocket. Therefore, they will not have any additional costs to worry about. This is great news for any consumer that has high credit card or other debt and has to make monthly payments. When you die before paying your debts, they have no extra burden to bear, which means they can pay your debts more quickly and easily so they can avoid filing for bankruptcy. Take a look at Paradigm Life.

Lastly, burial insurance also saves you money when you are planning your funeral. If you use your life insurance policy to cover your burial costs, then your funeral costs will only be a fraction of what they would be with a traditional funeral. Moreover, since the money paid into your life insurance policy will be tax-deductible, you will not be paying any Federal tax on the burial expenses. This can be particularly beneficial if you had been planning to get a mortgage someday but did not because of the death of the breadwinner of the family.

Overall, pre-need funeral insurance typically provides better coverage than burial insurance. Burial insurance does not pay for anything beyond your burial expenses, so any memorial gifts and items you leave behind will not be insured. If you need a headstone or cremation, the insurance company will provide this. Also, the cost of getting a plot at a local funeral home is significantly less expensive than what it would be if you purchased one at a bigger funeral home. Learn more on

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