- An individual buys a burial expense insurance policy for the amount they feel will cover the costs of their funeral. A trusted beneficiary is named who is expected to use the money to pay for the insured party's funeral.
- Burial expense insurance helps to reduce or eliminate the financial burden that is placed on surviving family members at a time of grief. As an estate can take months or even years to settle, burial expense insurance provides a quick payout so that the funds can be used when needed.
- One alternative to burial expense insurance is a pre-paid funeral. Pre-paid funerals allow an individual to plan and pay for their own funeral. Another type of insurance is pre-need insurance. In this case, an individual plans their own funeral and then purchases an insurance policy that is paid directly to the funeral home to cover the expenses.
