Timing and Payout of Burial Insurance: What You Need to Know

burial insurance

Burial Insurance Policy is also known as a “Final Expense Life Insurance Policy”. Burial Insurance can be bought separately, for ensuring that your funeral ceremony can be held by a funeral home. It relieves your surviving family members from the immediate expenses of arranging your funeral after your death.

Burial Insurance usually has a quick payout. Obviously it is common sense that after the death, funerals are the most urgent event during which the family is undergoing grief. Usually, burial insurance pays out within 24-72 hours after the claim is approved. 

Ever wondered, how fast a burial life insurance pays out? Well here are the answers to all your looming queries about funeral life insurance!

What are the factors that affect the timings for burial insurance pay out?

1.       Time since Policyholder purchased the burial insurance

If it is within 24 months (less than 2 years), and the burial insurance also has a waiting period, payout is not possible. In such a case, the accrued premiums are refunded with 10% interest. Burial Insurance mostly has a small coverage since the intention of the policyholder is to only conduct a funeral ceremony.

However, if the policyholder dies within the first 2 years since his policy was active, and his death is sudden or by accident. The insurer firm will take hold of his past medical record. They will verify if the death was caused by accident.

If they find any chronic illness or fatal sickness which led to death, it will nullify your burial insurance. Basically, they look for the truth, if they find that death was indeed caused by a sudden accident, they will pay the funeral home in full. But this investigation process will take a week or a month, and it can prolong the payout to get released.

 After 2 years (24 months after Burial Policy is purchased)

Whether the Burial Insurance Policy has a waiting period or not, payout is always instant if the policyholder dies after 2 years of purchasing and holding his policy. The beneficiaries call the insurer firm and provide 3 documents mentioned below, make a claim, claim is approved. Consequently, the beneficiaries get the pay out to pay to the funeral home. Claim is approved based on three things:

  1.       Death Certificate of the expired policyholder has to be shown.
  2.       Dead body of the deceased has to be presented in some form of evidence, to the insurer firm.
  3.       Beneficiaries have to sign a beneficiary statement and give it to the insurer company to get approval for their claim.

How long does it take the burial life insurance firm to pay to the Funeral home?

If these 3 documents are provided rapidly, the claim is approved by the insurer firm, in a matter of 24-72 hours. Funeral Homes prefer to conduct the ceremony for this policyholder as soon as possible. When a funeral home knows that a policyholder has upheld his burial policy for more than 2 years, they arrange the funeral quickly.

Funeral homes know that they’d be paid in full for their efforts to arrange the ceremony in this scenario. Any left-over payout is paid back to the burial insurance beneficiaries.

When is the burial insurance payout nullified?

Payout is not released if a fraud or murder case is proved with evidence. In this case, the following things occur:

Certified Fraud

  • When the application holds the forged signature of the policyholder.
  • If forged signatures are verified as fake through any tools or techniques.
  • Or when any of the related documentation provided is proved fake or illegal.

Consequently, the burial insurance payout is defied.

Proven Murder

If a beneficiary is greedy and murders the policyholder to get his life insurance death benefit or his burial insurance payout instantly. If the murder is proved in court of Law, the burial insurance payout is denied for that beneficiary.

What do you need to file a claim for your insured loved one’s burial insurance payout?

  1. Call the insurer firm.
  2. Make a burial insurance claim!
  3. Send them a death certificate copy.
  4. Show a picture of the policyholder’s dead body at your home.
  5. Beneficiaries sign and forward a copy of the beneficiary statement to the insurer firm.

What exactly does a burial insurance pay out cover?

It accounts for:

  • A decent quality casket
  • An ornamental urn
  • Cremation
  • Burial plot or slot
  • A headstone
  • Grave digging charges
  • Burial charges, grave closing costs
  • Funeral home charges for arranging whole ceremony
  • Family and corpse transportation
  • Obituaries
  • Flowers for funerals and graves.



How do you differentiate between life insurance and burial insurance?

Usually, life insurance gives you a right to make your claim between 15-60 days after the death of the policyholder. However, the claim can be made and approved within 24-72 hours for a burial insurance payout, if the policyholder had held his insurance for more than the last 2 years. Payout is awfully quick and instantly needed by the family to arrange his funeral through a funeral home.

 Which insurer company is the best and fastest for burial insurance payout?

Reviews and ratings of all companies are present online, in detail. If you have time and willingness, research thoroughly. If the policyholder did not commit any fraudulent or murderous activity, and held an active policy for 2 years, the maximum time for any insurer company to pay out, would be 3 business days. 

Usually how much does the burial insurance policy cost in form of premiums per month?

Sold separately, burial insurance covers minimal charges for your after death funeral ceremony. It has small coverage around $50,000 maximum. A life insurance death benefit payout is mostly around $150,000. Since the burial insurance payout is little, it can account for a grand funeral ceremony through a funeral home. The monthly premium fee for a 50 year old guy is around $40-$45 only. Similarly, for a woman the same age, it’d be around $30-$35.