Burial Insurance Also known as preneed policies, burial policies are marketed as a way to cover the cost of final expenses. Historically, some of these policies have had a very high price compared to their death benefit. Make sure the amount paid in will not quickly exceed the possible benefit. Otherwise, even setting money aside in a savings account may be a better option. Licensed insurance agents who work for a funeral home commonly sell these policies in the form of a whole life insurance policy. If there is no price guarantee, then the insured should insist on naming their own beneficiary instead of naming the funeral home as beneficiary. With a guaranteed policy, you are assured that funeral prices won’t change, but a non-guaranteed policy means that prices could escalate with the market. Check with the Better Business Bureau to make sure you are buying from a reputable company. Scams and unexpected expenses are not uncommon. Who Might Consider a Burial Policy You might a consider a burial insurance policy if: You have no life insurance coverage. You can't get term life insurance. You have limited savings with no other means to pay for your funeral expenses and outstanding debts. You want a separate policy to specifically cover your final expenses. A burial or preneed insurance contract made directly with a funeral home will cover some or all of the following: Burial plot Casket or urn Grave marker Cremation or embalming Funeral cars Flowers