How to Choose the Right Burial Insurance Plan

Q: How much burial insurance do I need?

Most financial advisors recommend $15,000-$25,000 to cover the average funeral ($8,300), plus outstanding medical bills, legal fees, and a small buffer for unexpected expenses.

Q: Can I change my burial insurance plan later?

Most burial insurance policies are permanent and cannot be downgraded, but many carriers allow you to increase coverage by adding a new policy. Your original policy's rate stays locked in.

Choosing a burial insurance plan doesn't have to be complicated. With a clear understanding of your needs and a few key decisions, you can find the right coverage in minutes. Here's a straightforward guide to help you choose.

Step 1: Determine How Much Coverage You Need

Start by adding up the costs you want to cover. The national average for a funeral with burial is about $8,300, but costs vary significantly by region and preferences. Consider:

Funeral service: $4,000 – $7,000
Casket or cremation: $1,000 – $5,000
Cemetery plot and headstone: $1,000 – $4,000
Outstanding medical bills: Varies
Legal and administrative costs: $500 – $2,000
Buffer for inflation/unexpected costs: $2,000 – $5,000

Most people find that $15,000 to $25,000 covers everything comfortably. If you've already prepaid for some arrangements or prefer cremation, you may need less. For a detailed cost breakdown, see our guide on funeral costs in 2026.

Step 2: Choose Your Policy Type

Simplified Issue is the best option for most people. You answer a short health questionnaire (no exam), get lower premiums, and your full benefit is available from day one. Choose this if you're in reasonable health.

Guaranteed Acceptance is for people with serious health conditions who can't qualify for simplified issue. Everyone aged 50-85 is accepted — no questions asked. The trade-off is higher premiums and a 2-3 year graded benefit period. Read more about final expense options for seniors.

Step 3: Compare Carriers

Not all insurance carriers are created equal. When comparing, look for:

AM Best rating: A- or higher indicates financial stability
Claims processing time: Top carriers pay within 24-48 hours
Premium guarantees: Ensure your rate is locked in for life
Graded benefit terms: For guaranteed acceptance, shorter is better
Customer reviews: Look for consistent positive feedback on claims

Step 4: Lock In Your Rate

The single most important piece of advice: don't wait. Every year you delay, your premiums increase. A 60-year-old pays roughly 30-40% less than a 65-year-old for the same coverage. Your health can also change unexpectedly, potentially moving you from simplified issue eligibility to guaranteed acceptance only — which costs significantly more.

Common Mistakes to Avoid

Buying too little: Underestimating costs leaves your family short
Not naming a beneficiary: Without one, the payout goes to your estate and may be delayed by probate
Choosing guaranteed acceptance when you'd qualify for simplified issue: You'll pay more for less coverage
Letting an existing policy lapse: If you have employer coverage ending at retirement, replace it before it expires

Ready to find your plan?

Answer a few questions and see your personalized rate — takes about 3 minutes.

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Frequently Asked Questions

How much burial insurance do I need?

Most advisors recommend $15,000-$25,000 to cover the average funeral ($8,300), outstanding bills, legal fees, and a buffer for unexpected expenses.

Should I choose simplified issue or guaranteed acceptance?

If you can answer health questions favorably, choose simplified issue for lower premiums and immediate full coverage. Choose guaranteed acceptance only if health conditions would disqualify you.

Can I change my burial insurance plan later?

Most policies are permanent and can't be downgraded, but carriers allow you to increase coverage by adding a new policy. Your original rate stays locked in.