What is cremation insurance? Cremation insurance, also known as final expense insurance or burial insurance, is a type of life insurance policy designed to cover the costs associated with cremation and other end-of-life expenses.

What You Need to Know About Paying for Cremation

  • Pre-need direct cremation packages ensure your family isn’t burdened with funeral costs. By paying in advance, you lock in today’s prices and protect your loved ones from future inflation.
  • Pre-need plans provide peace of mind for both you and your family. Knowing that all arrangements are made and paid for in advance alleviates stress and ensures that your final wishes are honored without family disputes.
  • Pre-need plans are straightforward and require no medical exams or intrusive questions. You can easily arrange and pay for your cremation services directly with the provider.
  • Pre-need packages allow you to make detailed final arrangements according to your preferences. With the ability to plan everything in advance, you avoid potential disagreements among family members about what you would have wanted.
  • Many cremation providers offer the flexibility to pay for pre-need plans in affordable monthly installments, making managing your budget easier while ensuring your final expenses are covered.

What Is Cremation Insurance?

A cremation insurance policy is intended to cover funeral costs, cremation expenses, and other related end-of-life costs. It is typically a smaller policy than traditional life insurance, with coverage amounts ranging from $5,000 to $25,000.

How Does a Cremation Insurance Policy Work?

Are you considering purchasing cremation insurance? Like other insurance policies, a person with cremation insurance coverage pays regular premiums, which can be monthly or annual.

The amount depends on the coverage you choose, your age, and (sometimes) your health status at the time of application. Upon your passing, the policy provides a lump-sum payment to your designated beneficiary, who can use the funds to cover cremation and other related expenses.

multi-generation family end-of-life expenses

Types of Cremation Insurance Policies

There are two main types of cremation insurance policies:

  1. Simplified issue: A simplified issue requires you to answer a few health-related questions but typically does not require a medical exam.
  2. Guaranteed issue: A guaranteed issue is available without health questions or medical exams, but premiums are generally higher and coverage amounts lower.

Another Option Instead of Cremation Insurance

Instead of purchasing cremation insurance, consider purchasing a pre-need plan (sometimes called pre-need insurance). Pre-need cremation plans are purchased directly from a funeral home or cremation provider. This type of policy locks in current cremation service prices.

Benefits of Purchasing a Pre-Need Cremation Package

Instead of purchasing cremation insurance from an insurance company, consider cutting out the middleman and paying directly for your funeral and cremation costs with a pre-need policy. Here are the benefits.

  1. Financial Protection: A prepaid cremation plan ensures your family is not burdened with funeral expenses.
  2. Peace of Mind: Knowing that arrangements are covered can provide peace of mind for you and your family.
  3. Funeral Preferences: Sometimes, at the time of death, families argue over “what mom would have wanted.” When you pre-purchase a cremation plan, you can make your own final arrangements so everyone knows your preferences.
  4. Simplified Process: Purchasing a pre-need plan is straightforward. No medical exams are required, and no one will ask intrusive questions about your health.
  5. Lock in Today’s Rates: Prepaid cremation plans lock in current prices.
  6. Pay in Monthly Installments: Many cremation providers allow you to make affordable monthly payments for cremation services.

What Is Direct Cremation?

If you are concerned about the financial burden of end-of-life services, purchase a prepaid plan with a direct cremation provider. Direct cremation is the most affordable funeral service. In direct cremation, the body is transported from the place of death to a cremation facility. The family then receives the cremated remains and has more options for their loved one’s funeral or memorial service.

Are you looking for a preplanned cremation package in and around Pennsylvania and New Jersey? Philadelphia Cremation Society offers affordable preplanned packages. If it’s time to record your final wishes, contact a member of our staff today to pay for your final expenses.