Burial insurance is not right for everyone. Here is a straight answer on when it pays off and when you can skip it.
When burial insurance is worth it
Burial insurance makes the most sense if you do not have several thousand dollars set aside specifically for final expenses, or if you do not want to leave that burden to your spouse or children. It is also valuable if your health makes traditional life insurance expensive or unavailable, since most burial plans require no medical exam. For seniors on fixed incomes, the trade is simple: a modest monthly premium today guarantees a tax-free lump sum that covers the roughly $8,300 median funeral cost (NFDA) when the time comes, so loved ones are not scrambling to pay.
When you might skip burial insurance
If you already have enough liquid savings earmarked for funeral costs, or a fully funded life insurance policy that covers final expenses, a separate burial policy may be unnecessary. Over many years, premiums can add up to more than the death benefit, especially on guaranteed issue plans bought at older ages. A pre-paid funeral or a payable-on-death bank account are alternatives some seniors prefer. The right choice depends on your savings, health, and how much certainty you want. A licensed agent at 1-800-MEDIGAP (1-800-633-4427) can run the numbers honestly with you.