Burial Insurance vs Life Insurance: What's the Difference?
When you're shopping for coverage to protect your loved ones, it's easy to get overwhelmed by all the terms—life insurance, burial insurance, final expense, term, whole life. What's the difference, and which one do you actually need?
Let's break it down in simple terms.
What is Burial Insurance?
Burial insurance, often called final expense insurance, is a small whole life policy specifically designed to cover end-of-life costs. This includes things like:
- Funeral or cremation expenses
- Medical bills
- Small debts
Most burial policies offer coverage amounts between $2,000 and $50,000. They're popular among seniors because:
- There's no medical exam
- Approval can be quick (sometimes same day)
- Coverage is permanent, as long as you pay the premium
What is Traditional Life Insurance?
Traditional life insurance comes in two main types: term and whole life.
Term Life
Covers you for a set period (e.g. 10, 20, or 30 years). It's often used to cover things like mortgage debt, income replacement, or young children.
Whole Life
Lasts your entire life and builds cash value. These policies tend to be more expensive but offer lifelong protection.
These policies usually have higher face values—$100,000 or more—and may require a medical exam or detailed health review.
So Which One is Right for You?
If you're a senior looking to leave behind enough to cover funeral costs or some medical debt, burial insurance is often the simplest and most affordable solution.
If you're younger, have a family, or are planning for long-term needs, term or whole life insurance might be a better fit.
At OurLivesProtected.com, we help you compare all types—so you're not stuck with a one-size-fits-all plan.