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Burial Insurance

Is burial insurance the same as a prepaid funeral plan?

No, they're different products. Burial insurance is a life insurance policy that pays a cash death benefit to your named beneficiary, who can use the money however they choose. A prepaid funeral plan is a contract directly with a funeral home that locks in specific goods and services at today's prices.

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Prepaid plans can protect against future price increases but tie you to a specific funeral home and may have limited portability if you move. Burial insurance offers more flexibility since the cash isn't restricted to one provider.

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Some people use both — a prepaid plan for specific arrangements plus burial insurance for additional costs or debts not covered by the plan.

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