Whether you are discussing life insurance, health insurance, homeowner’s insurance, or auto insurance, the purpose of the insurance policy in question is the same. It is to relieve the shock of expensive or unplanned bills. Burial insurance, which is a form of life insurance, has the same goal.
Today, in the United States, funeral costs can range from $8000 to $14,000. Many people have enough assets to absorb such an expense. Many people do not. That is where burial insurance can be an enormous benefit to loved ones being left behind when someone passes away.
Many people are surprised at how affordable a small funeral insurance policy is. They are well worth the cost when the alternative is stiffing family members with a huge bill from a funeral home when they are already going through enough grief in mourning your loss.
Another benefit of this type of insurance is it allows someone to plan and pay for their funeral ahead of time, ensuring that all of their final wishes are handled. You can meet with the director of a funeral home ahead of time and plan things like the service, flower arrangements, casket, burial plot, cremation, and any other last requests you have. Doing this ahead of time allows you to come to an agreement on the price and sign a contract with the funeral home. You can then purchase a burial policy that has a death benefit of that amount, making the funeral home the beneficiary.
The benefit of this kind of arrangement is two-fold. First, you are planning the funeral service and arrangements you want while paying for them and not leaving others with the bill. Second, you are relieving your loved ones of the added burden of arranging your funeral, burial, last requests, etc. They will be grateful to not have to worry about such things during their time of mourning.
For the relatively inexpensive cost of burial insurance, the only question really is why would you not have a policy?