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The Pros And Cons Of Funeral Life Insurance

Do you need funeral life insurance? There’s a very simple way to find out. Ask yourself if you need life insurance. 

If the answer is yes, then you also need funeral insurance (also called burial insurance or pre-need insurance) or a funeral/life insurance combination. 

You need life funeral and life insurance if you have a business or any family members dependant on you and would suffer greatly if you should suddenly croak. ( read: Checklist Before Taking Out A Funeral Insurance )


According to the American Association of retired Persons, the average funeral costs in America are $4500. That’s a big chunk of change. 

And just like with all other living expenses, the cost of dying is also going up. AARP estimates that in a few years the average cost of a funeral will be $5500. That’s even more of a financial burden to everyone you leave behind.

This is where funeral and life insurance helps the most. If you are single, poor and renting an apartment, then you don’t need it. 

But if you have a family and just got a mortgage, you can at least make sure your family won’t loose their home with the funeral and life insurance. When you die, your family is obliged to pay your burial expenses.

There are more laws in place to help protect buyers of a funeral insurance policy. There are states that will not allow you to buy more than $25,000 of this kind of insurance. 

There are policies like with Funeral Directors Life Insurance Company where you can pay for everything up front and then your funeral and burial happens without any money needing to exchange hands after you die. 

The odds of your family actually getting the benefit of your funeral and life insurance is higher than ever.


The main disadvantage is that this is an extra expense. It’s a very important expense, too, so you have to take the time to do careful research before signing any dotted lines. 

You might have to hire a lawyer to help you with all the “legalese”. If you have a financial advisor or an accountant, they may be able to perform this service for you (for an additional fee).

Another disadvantage is that you are the one that has to plan your funeral in every way – including floral arrangements as well as burial plot or choice or urn – and you won’t be around in order to argue in case your wishes are not done to the letter.