Burial insurance is usually some sort of insurance policy to provide for the burial of a named or designated person, or to save harmless anyone from either part of or the entire cost of the burial of the body of a named or designated person. Many insurance companies offer at a reduced rate a life insurance policy tailored specifically to burial expenses. Many funeral homes also offer their own burial insurance policies, designed to pay in full all funeral expenses, provided you know you'll be using their services.

Years ago, many burial insurance policies specified particular services, casket, etc., that would be furnished at the insured's death. These policies were usually tied to particular funeral homes and paid only a token amount of cash if a different funeral home was used to bury the person. Most, if not all, states have outlawed the writing of such policies. However, those already issued must be honored. A different plan is the burial association, often thought by many to be insurance but it is not really insurance. Joining for a modest fee, members were assessed each time a member died for the amount necessary to bury that person. These were operated by funeral homes to tie prospective customers to particular funeral homes. However, this was not true insurance and most states outlaw such plans or so restrict their activities that few are still operating. Today, preneed insurance is a popular way to prepay for funeral costs. These policies, usually written through funeral homes, specify the services and merchandise to be used at death, but they differ from old burial insurance in that the premium structure supports growth of the death benefit over the term of the policy to offset price increases due to inflation. Also, in most cases, the proceeds of the policy can be used at any funeral home, should the insured or the family change their minds about which funeral home to use for the funeral. However, the specific services and merchandise originally listed may not be covered unless the new funeral home agrees to honor the original arrangement.

Burial is a type of life insurance. It usually has a smaller face value to cover the cost of funerals. Funeral parlors did not like the idea of folks paying up front and in advance, particularly when costs could go up when services were actually provided. So they steered clients to burial policies where ins cos handled the financing and named the funeral parlor as beneficiary.

WHEN YOU DIE IT COVERS EVERYTHING YOU PAY FOR.