Pre-Need Burial Life Insurance

Preneed life insurance is an insurance policy whose benefits cover the cost of the predetermined expenses of a funeral, cremation or burial. ... The purpose of preneed life insurance is to set aside funds for your funeral, before the need arises, thereby protecting your loved ones and your financial assets. In most cases, preneed life insurance may be payable immediately to the beneficiary (generally the funeral home) upon the policyholder's death.

Also known as "Burial Insurance” usually refers to a whole life insurance policy with a death benefit of a specified amount but can range from $5,000 to $25,000. As its nickname implies, people buy this type of policy to provide money for funeral and burial costs for themselves and/or family members.