Burial insurance is a whole life insurance policy designed to cover the expenses of one’s burial, cremation and/or funeral. It is also called Funeral Insurance, Final Expense Insurance or Senior Life Insurance.

Burial insurance policies generally have smaller payouts ranging between $5,000-$50,000 and require no medical exam, making it an easy insurance option. Because of the smaller payouts, burial insurance monthly premiums are typically a much more affordable option than your traditional whole or term life policies.

While Burial Insurance is often used to cover the costs of a funeral, the cash distribution can be used for any final expenses (funeral costs, credit card debt, travel expenses, etc). The beneficiary can use the death benefit for anything he or she sees fit, not just for burial costs.

Burial insurance works like other whole life insurance policies, after your death, the beneficiary (or the person you choose to receive the money after you pass away) would receive the full amount of coverage you chose assuming all of your payments were made on time.