“Death insurance” might sound like a strange and even “morbid” term, but it’s really just another name for final expense insurance or burial insurance. This type of life insurance is designed to cover funeral costs, burial expenses, and final bills—helping your loved ones avoid financial stress during an already difficult time.
Here’s what you need to know to decide if it’s right for you.
What is Death Insurance?
Death insurance is a form of permanent life insurance meant to pay for your final expenses. Unlike traditional life insurance that may be used for income replacement, these policies focus on immediate, predictable costs after your passing. Terms like “death insurance,” “final expense insurance,” and “burial insurance” are often used interchangeably by consumers.
Who Should Consider a Death Insurance Policy?
Death insurance is commonly selected by:
- Seniors who want to cover funeral or burial costs.
- Adult children seeking to prepay their parents’ final expenses.
- Anyone concerned about leaving outstanding bills—medical, credit cards, or mortgage—unpaid.
If you have limited resources or want to ensure your family is not burdened financially, death insurance is worth exploring.
Costs of Funeral and Final Expenses
National averages:
- Traditional funeral with viewing, burial, and vault: ~$10,000
- Cremation: ~$5,000
Additional bills such as medical debt, credit cards, or mortgage obligations can increase these costs. Planning ahead with a policy ensures your family isn’t left covering these expenses.
What Determines the Cost of a Death Insurance Policy?
Premiums are influenced by:
- Age – Younger applicants usually pay less.
- Health status – Smoking, chronic conditions, and overall health can affect rates.
- Policy type – Standard vs. guaranteed issue policies (guaranteed issue is more expensive, typically used when other options are unavailable).
Many policies offer monthly payments, making coverage affordable and manageable.
Accidental Death Insurance
Some policies or riders cover death only due to accidents, such as car crashes. These may be added to a standard life insurance policy or purchased separately. Note that these do not cover natural deaths.
AD&D (Accidental Death & Dismemberment) policies may also provide benefits for severe injuries or loss of limbs, but they are not traditional life insurance.
Have questions about death insurance or final expenses?
Our independent agents are here to help you understand your options and find the coverage that fits your needs.
Call Us Now Contact OnlineShould I Buy a Death Insurance Policy?
Ask yourself:
- Do I have sufficient resources to cover funeral and final expenses?
- Would my spouse or family struggle financially if I passed?
- Do I want to ensure peace of mind for my loved ones?
If your answer indicates a potential financial burden on your family, obtaining a policy sooner rather than later can save money and reduce stress. Life insurance premiums are generally lower the younger and healthier you are.
Benefits of Death Insurance
- Immediate payout to cover final expenses
- Tax-free death benefit
- Funds bypass probate for quick access
- Peace of mind for you and your family
How to Get Coverage
Obtaining death insurance is simple with an independent agency. We represent multiple top life insurance carriers and can help match your needs with the best policy. No medical exam is usually required for standard permanent coverage, though guaranteed issue options are available for older applicants.
Call us at 269-230-3464 or contact an agent online to review your options. Experienced advice is always free.
Frequently Asked Questions
What is death insurance?
Death insurance is another term for final expense or burial insurance. It is a life insurance product designed to cover funeral costs, remaining bills, and provide tax-free money to beneficiaries.
Who should consider death insurance?
Typically seniors or aging individuals consider this coverage, but children of aging parents may also take out policies on consenting parents to ensure final expenses are covered.
How much does death insurance cost?
Premiums depend on age, overall health, and lifestyle factors such as smoking. Costs can vary but are generally affordable, especially when purchased at a younger age.
Does accidental death insurance cover natural death?
No. Accidental Death or AD&D policies only pay if the death is caused by an accident. Natural deaths are not covered under these policies.
Do I really need a death insurance policy?
If you have sufficient resources to cover end-of-life costs, you may not need a policy. Otherwise, a properly planned final expense insurance policy can prevent financial stress for your loved ones.
Michael is a veteran independent life and health insurance agent who specializes in guiding people with even high risk health conditions thru the insurance process. He is passionate about helping individuals and families get their unique financial protection needs met, providing his experienced based advise and delivering affordable, dependable coverage you can count on.