There are many ways to pay for funeral costs. You can use savings or crowdfund the money, but these options aren’t always an option. Ideally, the deceased’s family won’t be put in the financial hot seat: this is where preneed insurance comes in.
Preneed insurance (also known as funeral insurance, burial insurance, and final expense insurance) is a way to pre-pay funeral expenses through a funeral home, mortuary, cemetery, or insurance company. Generally, it can be broken down into two categories:
Ultimately, both preneed insurance and funeral insurance let family and friends grieve instead of worrying about funeral financing. Dealing with death can be emotionally tasking, and removing the burden of paying for a funeral can be especially beneficial to those you leave behind.
Funeral insurance payouts usually range from $5,000-$20,000, enough to cover the funeral and any incidental costs related to the deceased’s passing. The smaller payout size means funeral insurance is a more affordable option relative to regular life insurance. Buyers pay premiums in a lump-sum or on a monthly basis.
We’d love to give an exact answer about how much burial insurance costs, but realistically there are too many compounding factors to give a one-size-fits-all quote. Major factors affecting premiums include:
Ultimately, the best way to estimate funeral insurance premiums (and get the best deal) is to have insurance companies compete with multiple quotes. Visit our partner to get your personalized quotes, or to just learn more about the process and providers.
But how do you afford preneed insurance if your money is tight and your credit isn’t ideal?
Funeral Help supports funeral homes and their families with affordable credit of up to $10,000. Funeral Help provides fixed-rate loans of up to $10,000 to cover funeral expenses (or pre-need plans), with no sign-up fees or prepayment expenses. And even if you have bad credit or no credit, you might still qualify for a loan. For more information on how Funeral Help can help you with financing your funeral, visit our FAQs page or give us a call at (844) 311-7772.