What is the difference between Final Expense and Burial Insurance?

This answer to this question is simple:

Nothing!

You heard me right, the following four names are interchangeable, each one helps the policyholder pay their respective end of life expenses:

• Burial Insurance
• Cremation Insurance
• Final Expense Insurance
• Funeral Insurance

The different terms used are merely a reflection of what term/message people around the United States will respond to. (In the Midwest USA they call soda “pop” or did the person mean an ice pop, in the North East USA it may be called soda, and in some parts of Europe, if one asked for soda they are usually referring to seltzer or club soda.)

The only difference, besides for cremation which is a specific end of life choice, each one of the titles; Burial, Final Expense and Funeral was intended to call attention to this potential financial burden and be a way to answer this need.

Similar to Mortgage Insurance. This is usually term life insurance purchased for the purpose of protecting a family’s home in the event that something happened to the breadwinner(s). So for example if someone has a 15 year mortgage, they would be inclined to purchase a 15 year term mortgage policy.Why? Because after 15 years, the home has hopefully been paid off and the family can have more peace of mind. 

When it comes to burial expenses, if not planned properly the beneficiary, usually a close family member will have to come up with $7,000-$15,000 right away. The funeral directors are fine people but they can’t take an IOU on assets that may be tied up in probate for 3 months to a year. So, this family member will need to borrow money from friends and family or go into debt. (This debt can take the beneficiary years to pay off.) All of this responsibility to manage final expenses for the most part, is left to loved ones and those that care about the individual that passed away.Therefore, there is the potential of guilt and shame in not doing right or fulfilling their loved one’s wishes. (Lets not forget that this is also a very emotional time for the family)

Depending on how many years from now this funeral may take place and which state it will happen in, will determine the cost of the final expenses.