Life Insurance Vs Funeral Insurance Plans

Once you have decided to plan your funeral preparations, you might be confused choosing between life insurance plans and funeral insurance plans. Both of these insurance policies can provide finances for your funeral expenses but that is where their similarity ends. We have made a comparison between life insurance and funeral insurance to help you make an informed decision.


Life insurance requires you to undergo a medical examination before you can qualify for the policy. And in most cases, people with severe heath issues are disqualified from getting a life insurance plan. However, this method is not applicable to funeral insurance. You are not required to undergo any checkup by the funeral insurance company. So, practically anyone can qualify for a funeral insurance. In addition, you can simply buy the policy online or over the phone.

Target market

Unlike life insurance which markets itself to all age groups, funeral insurance is only targeted at seniors or persons with serious medical conditions. Funeral insurance helps these categories of people provide financial support for their family before they die.


Funeral insurance, just as its name implies, is only meant to cover the expenses at your burial. Therefore, it provides minimal coverage. Life insurance, on the other hand, provides coverage during sickness, accidents, job loss and death. Depending on the life insurance policy you choose, you are assured of coverage for as long as you live.


Irrespective of the type of funeral insurance you choose or your budget, the limit of your plan will definitely not exceed $10,000. In fact, the most common funeral insurance plan are set at $5000 and $10,000. So, assuming you get a funeral insurance plan of $5000, in the event of your death, the amount paid to your family will be $5000. And that may not be enough to cover your burial expenses. On the contrary, life insurance policies have no limit. You can get a life insurance plan for as low as $5000 to $5million or even higher, depending on if you can afford it.


Even though funeral insurance is marketed as an inexpensive bargain, the premiums are more expensive than life insurance. And we will explain why this is so. Since funeral insurance does not require medical checkups, the insurance company sees you as a high-risk person. So, for the funeral insurance company to make a profit, the premiums have to be increased. Thus, the premium you will pay on a $5000 funeral insurance plan will be the same amount you will pay for a $75,000 life insurance policy.