The costs of funerals are very expensive and growing. Some estimates say that it costs, on average, $8,000 for a simple burial. For those who want more advanced treatment, you can expect to pay much more. 

Who will pay funeral expenses if you die unexpectedly? Some forms of life insurance like burial insurance can help to pay for these costs. It can also alleviate many of the financial risks your family faces. But, is burial insurance enough?

What Does Burial Insurance Cover?

Burial insurance is a term used to describe a basic, low-value life insurance policy. It provides a minimal amount of coverage to your loved ones. Because they offer a lower level of coverage, burial plans are much less expensive. 

As with all types of life insurance, your beneficiary, has the right to decide how to use those funds. They don't necessarily have to use it for burial. It is possible to leave burial insurance as a part of a trust. When using a trust, you can define the terms of the trust yourself. That gives you control over how to use the funds when you are gone.

Why It Isn’t Enough?

Burial insurance is minimal protection. Though a good start, it usually does not provide much to those who need financial help right away. That is generally your family. Here are some things to consider when choosing life insurance plans.

• How long do you want the policy to provide financial support for your loved ones? For example, you may want a policy that offers at least enough to cover your salary for a year.
• Do you have a mortgage or other debts? If so, a larger life insurance policy can help to cover those costs outright.
• How much do you anticipate the costs of your funeral expenses to be? Pre-planning for such events can offer some guidance.

Once you gather this information, talk to your insurance provider about coverage. Life insurance becomes available to loved ones nearly immediately upon death. It usually does not go to creditors or to others to whom you owe money to even after your death. 

Therefore, life insurance can support your loved one during this very difficult time. Though burial insurance is a good basic policy, it often is not enough to provide long-term care to your loved ones.