What Is Pre-Need Insurance?

Pre-need insurance, also called funeral insurance, offers a way for consumers to pre-pay funeral and burial expenses prior to death. Pre-paying funeral expenses removes the burden of funeral costs from surviving family members after the death of a loved one.

Funeral Products

Pre-need insurance allows the buyer to custom select and pre-pay for funeral products the policy will cover. Products can include cremation, a casket or urn, flowers and embalming.

Burial Services

Pre-need insurance offers the pre-payment of burial services and products. These services and products can include a burial plot, burial vault, grave liner, grave marker and funeral vehicles, such as a hearse.

Price of Coverage Varies

The price of pre-need insurance will vary from buyer to buyer. Each buyer custom selects product and services; therefore, all pre-need policies vary in features and price.

Purchasing Pre-need Insurance

Insurance companies, as well as funeral homes, sell pre-need insurance policies.

Paying for Pre-need Insurance

Payment plans for pre-need insurance policies include one lump-sum payment, as well as installment payments.

References

• AARP: Funeral Arrangements and Memorial Services
• Insure: Tips for buying pre-need and final expense insurance
• MSN Money: Tips for buying funeral insurance