Burial insurance is a small whole life insurance policy, usually somewhere between $5,000 and $25,000, sold to pay for a funeral and other final bills. When you die, the insurer pays the money to the person you named, and that person can spend it on the funeral home, the cemetery, or anything else. "Burial insurance" and "final expense insurance" are two names for the same product. To size a policy, add up what the funeral you actually want would cost. A traditional funeral with burial has a national median of $8,300 at the funeral home alone, before any cemetery charges. A direct cremation often costs $1,000 to $3,500.
This page covers how burial insurance works, what burial and cremation cost, how to work out your coverage amount, and how it differs from final expense and preneed plans. It is general information, not a recommendation of any company or plan. Insurers set their own prices and rules, and nothing here promises a rate.
How Burial Insurance Works
Most burial insurance policies share a few features:
- Whole life, not term. The policy lasts for life as long as you pay the premiums. It does not expire at 80 or 90 the way term coverage can.
- Small face amount. Coverage is usually sold in the range of roughly $5,000 to $25,000. Some insurers go lower or higher.
- Fixed premium. On most whole life policies the premium is set when you buy and does not go up with age. Check the policy itself to confirm.
- Light underwriting. Many policies ask a short list of health questions and require no medical exam. Guaranteed issue policies ask no health questions at all.
- Cash to a beneficiary. The death benefit goes to the person you name, not to a funeral home, so it can cover the funeral, a final medical bill, or a utility balance.
- Some cash value. Whole life builds a small cash value over time. That matters if you get SSI or Medicaid (see below).
The two-year waiting period
Guaranteed issue burial policies, and some simplified issue ones, use a graded or modified death benefit. If you die of natural causes in the first two years (sometimes three), the policy pays back the premiums you paid, often plus a set amount of interest such as 10%, instead of the full face amount. Accidental deaths are usually covered in full from day one. If you are buying coverage because you expect to need it soon, read this part of the policy before you sign.
Who can buy it
Insurers commonly sell burial insurance to people from about age 45 or 50 up to 80 or 85. A smaller number accept applications into the late 80s. For buyers over 80, expect fewer choices, a lower maximum face amount, more guaranteed issue policies with a waiting period, and higher monthly premiums for each $1,000 of coverage. Age at purchase, health, and tobacco use drive the price more than anything else. Our guide to life insurance for seniors has sample monthly costs by age.
What a Burial Costs Compared With Cremation
Your coverage amount should follow the kind of funeral you want. The most recent national itemized survey is the National Funeral Directors Association (NFDA) 2023 General Price List Study. As of October 2026 it is still the newest national study, so real prices in 2026 and 2027 are likely somewhat higher. Between 2021 and 2023 the median burial funeral rose 5.8%.
| Type of funeral | Typical cost | What is included |
|---|
| Funeral with viewing and burial | $8,300 (NFDA median) | Basic services fee, embalming, viewing, ceremony, hearse, and a $2,500 metal casket. No cemetery costs. |
| Same, with a burial vault | $9,995 (NFDA median) | The above plus a $1,695 vault. Still no cemetery costs. |
| Funeral with viewing and cremation | $6,280 (NFDA median) | Viewing, ceremony, cremation, and an urn |
| Cremation with a memorial service | About $4,000 to $5,000 | Cremation plus a service with the urn present, no viewing |
| Direct cremation | About $1,000 to $3,500 | Pickup, paperwork, cremation, ashes returned in a basic container |
Source: NFDA 2023 General Price List Study for the medians. The cremation ranges come from our cremation cost guide, which breaks each type into line items.
Cemetery costs come on top of a burial
The NFDA burial figures leave out everything the cemetery charges. These costs vary a great deal by city and cemetery, so treat the ranges below as rough:
| Cemetery charge | Typical range |
|---|
| Burial plot | Roughly $1,000 to $5,000, much more in some cities |
| Opening and closing the grave | Typically around $500 to $1,500 |
| Headstone or grave marker | Roughly $1,000 to $3,000 |
| Vault or grave liner (if not bought from the funeral home) | Roughly $1,000 to $2,000 |
Together, cemetery charges often add a few thousand dollars, and sometimes $8,000 or more. A traditional burial with a vault, plot, and headstone can therefore run roughly $12,000 to $18,000. Ask the cemetery for its written price list.
How Much Burial Insurance You Need
Here is a simple way to work out the number:
- Choose the funeral. Burial or cremation, with a viewing or without. This choice moves the total more than anything else.
- Price it locally. Call two or three funeral homes. Under the FTC Funeral Rule they have to give you prices over the phone and hand you an itemized price list if you visit.
- Add cemetery costs if you choose burial, or the cost of burying or placing an urn if you choose that after cremation.
- Add other final bills. Think of a last medical bill, a credit card, a month of rent or utilities, and travel for family.
- Subtract money you already have. Count savings set aside, any existing life insurance, and benefits you may get (see the table below).
- Add a buffer of about 10% to 20%. Prices keep going up, and a policy bought at 70 might pay out 15 years later.
Sample coverage amounts
| Plan | Rough total to budget | Coverage often chosen |
|---|
| Direct cremation, no service | $1,000 to $3,500 | $5,000 |
| Cremation with a memorial service | $4,000 to $5,000 | $7,500 to $10,000 |
| Funeral with viewing, then cremation | About $6,280 and up | $10,000 |
| Graveside burial, no viewing, plus cemetery costs | Varies widely; often several thousand dollars plus cemetery charges | $10,000 to $15,000 |
| Traditional funeral, vault, and cemetery costs | Roughly $12,000 to $18,000 | $15,000 to $20,000 |
These are planning figures, not quotes. Your local prices may be higher or lower.
Benefits that can lower the amount you need
| Benefit | Amount | Who gets it |
|---|
| Social Security lump-sum death payment | $255, one time | A surviving spouse who lived with the person, or certain spouses and children already getting benefits. It is not paid to the funeral home and does not go to everyone. |
| VA burial allowance, non-service-connected death | Up to $1,032 for deaths on or after October 1, 2026 ($1,002 for deaths from October 1, 2025 to September 30, 2026) | Eligible veterans' families who paid burial costs |
| VA plot or interment allowance | Up to $1,032 for deaths on or after October 1, 2026 | When the veteran is not buried in a national cemetery |
| VA burial allowance, service-connected death | Up to $2,000 (death on or after September 11, 2001) | Families of veterans whose death was service connected |
| Burial in a VA national cemetery | No cost for the grave, opening and closing, liner, headstone or marker, and upkeep | Eligible veterans, and often their spouses and dependents |
| State or county burial help | Often around $1,000 to $2,500 | Usually low-income families with few assets; rules vary by state and county |
Source: VA burial allowance page (va.gov) for the VA figures. Our guide on help paying for a funeral covers the government programs and how to apply.
A veteran planning a burial in a national cemetery may need far less coverage than the tables above suggest, because most cemetery costs disappear. Veterans with a service-connected rating should also look at VA's own life insurance, which our senior life insurance guide explains.
Burial Insurance vs Final Expense vs Preneed
The names overlap, and that confuses a lot of shoppers. Here is how they usually differ:
| Burial insurance | Final expense insurance | Preneed funeral insurance |
|---|
| What it is | Small whole life policy | Small whole life policy (the same product under another name) | Insurance or a contract tied to a funeral plan you arrange ahead of time |
| Who gets the money | The beneficiary you name | The beneficiary you name | Usually the funeral home you chose |
| Can it pay other bills? | Yes | Yes | Usually no, it pays for the agreed funeral |
| Where you buy it | Insurance agent or insurer | Insurance agent or insurer | Through a funeral home |
| Prices fixed ahead of time? | No, the family pays whatever the funeral costs | No | Often yes, for the goods and services listed in the contract |
| Main risk | The benefit may not keep up with rising prices | Same | Moving away, or the funeral home closing or changing hands |
In plain terms, burial insurance and final expense insurance are the same kind of policy. Our guide to final expense insurance goes deeper on graded benefits, underwriting, and how the cost adds up over time. Insurers and agents pick whichever name they think shoppers search for. Some state insurance departments also use "burial policy" for preneed contracts, so read the contract to see who gets paid: a person or a funeral home.
Burial insurance vs regular life insurance
Any life insurance can pay for a funeral. Burial insurance is a small, permanent policy with easier approval. Regular term or whole life usually has larger amounts and fuller medical underwriting, and it can cost less per $1,000 of coverage if you are healthy enough to qualify. People in their 50s and 60s in good health sometimes find that a regular policy costs less than burial insurance for the same coverage. Many people in their 70s and 80s, or with serious health problems, end up with burial insurance because it is the coverage they can get approved for.
Burial Insurance and SSI or Medicaid
If you get SSI, or might apply for Medicaid long-term care, the type of policy matters:
- SSI resource limit: $2,000 for an individual, $3,000 for a couple. Your home, one car, and household goods do not count.
- Life insurance with cash value: SSA ignores the cash value only if the total face value of all life insurance on you is $1,500 or less. Above that, the full cash value counts toward the $2,000 limit. A typical $10,000 burial policy is over that line, so its cash value counts.
- Burial insurance, as SSA defines it: SSA uses a narrower meaning than the market does. To SSA, burial insurance is a policy whose terms allow the money to be used only for your burial. A policy you can borrow against or cash in does not count as burial insurance under this rule. A true burial-only policy is not counted toward the face value total, but its face value reduces your separate $1,500 burial fund exclusion.
- Burial spaces: A plot, casket, vault, headstone, and opening and closing of the grave are excluded no matter what they are worth, including when they are prepaid.
- Medicaid: Many states exclude an irrevocable funeral trust or preneed contract, and some cap the amount. Rules differ by state, so check with your state Medicaid agency before you buy.
For a full walk-through, see our guide to how life insurance counts for SSI and Medicaid. The same check matters for food assistance; see whether life insurance affects food stamps.
How to Shop for Burial Insurance
- Settle on your coverage amount first using the steps above, so an agent does not set it for you.
- Answer the health questions honestly. A false answer can lead the insurer to deny the claim within the first two years.
- Ask whether the death benefit is level or graded. A level benefit pays the full amount from the first day. A graded one does not.
- Compare at least three quotes for the same face amount. Prices for the same coverage can differ a lot between insurers.
- Check the insurer with your state insurance department. Confirm it is licensed in your state and look up complaints.
- Read the free look period. Most states give you a window, often 10 to 30 days, to cancel for a full refund.
- Tell your beneficiary where the policy is and which insurer holds it. Unclaimed policies are common.
- Watch for pressure. Mail and TV ads that promise "locked-in rates" or "approval for everyone" often describe guaranteed issue plans with a waiting period. Low-dollar "per unit" plans can also leave you with coverage that shrinks or costs more as you age.
Frequently Asked Questions
Is burial insurance the same as final expense insurance?
Yes, in most cases. Both names describe a small whole life policy that pays a beneficiary when you die, meant to cover the funeral and final bills. The product called preneed insurance is different, because it is arranged through a funeral home and the money usually goes to that funeral home.
How much burial insurance do I need?
Price the funeral you want, then add other final bills and subtract money and benefits you already have. A direct cremation plan is often covered by $5,000. A traditional burial with a vault, plot, and headstone can run roughly $12,000 to $18,000, so people planning one often choose $15,000 to $20,000.
Can I get burial insurance over age 80?
Often, yes. Many insurers accept applicants up to age 80 or 85, and a few go higher. Over 80, you will usually see lower maximum amounts, more guaranteed issue policies with a two-year waiting period, and higher premiums per $1,000 of coverage.
Does burial insurance cover cremation?
Yes. The money goes to your beneficiary, who can spend it on cremation, burial, a memorial, or other bills. Nothing in a typical policy requires a burial.
What happens if I die in the first two years?
With a level policy, your beneficiary gets the full amount. With a graded or guaranteed issue policy, a death from natural causes in the waiting period usually returns the premiums paid plus some interest, not the full face amount. Accidental deaths are usually paid in full.
Will burial insurance affect my SSI?
It can. If the total face value of all life insurance on you is over $1,500, SSA counts the policy's cash value toward the $2,000 resource limit. A policy whose terms limit its use to your burial is treated differently, and a prepaid plot or casket is excluded. Check before you buy.
Does Social Security pay for funerals?
Not directly. Social Security pays a one-time $255 death payment to a surviving spouse who lived with the person, or to certain spouses and children who already get benefits. It does not go to the funeral home and does not cover much of the bill.
Is burial insurance worth it?
It depends on your situation. It makes the most sense for people who have little savings, cannot qualify for regular life insurance, and want a set amount ready for their family. If you can save the funeral cost in a payable-on-death account, or qualify for a cheaper regular policy, those may cost you less over time. People who live many years can end up paying more in premiums than the policy pays out.
