Funeral burial insurance protects us from serious financial harm when adverse events occur. Most of the insurance we purchase we hope to never use. We hope to never need collision coverage on our cars or flood insurance on our houses. Life insurance is one insurance policy, though, we are sure to use. Funeral insurance is a type of life insurance.

Burial funeral insurance is also called final expense life insurance and preneed insurance. Final expense insurance companies issue life insurance policies with small values for funeral coverage. Here’s how it works.

1. You choose a funeral home where you would like to have a funeral. Alternatively, choose an insurance company with funeral insurance plans. Some insurance companies have you assign a particular funeral home while others allow your family to choose any funeral home at the time of death.

2. Calculate the amount of coverage you need to pay for funeral and cremation services at the time of death. A funeral director at a funeral home helps you calculate this number.

3. Purchase funeral expenses insurance sufficient to cover the cost of your funeral and/or cremation.

4. Make monthly payments on the funeral expense insurance.

5. At the time of death, your family contacts the final expense agents at the insurance company with the funeral programme and advises them to pay funeral expenses from the policy.

6. Within 24 – 48 hours, the funeral home receives funds to cover funeral expenses.

7. Should the funeral insurance policy pay out more than the cost of the funeral or cremation, the additional funds are paid to the family member listed as the beneficiary.

Consider funeral plan insurance to make modest monthly payments to cover final expenses, and ensure your family won’t be burdened with covering funeral expenses. As with any insurance policy, read the agreement carefully to fully understand the terms. Life insurance for funeral expenses is an easy and practical way to cover costs.