Should I Buy a Burial Policy?

Burial policies, also known as final expense insurance, aren’t the best option for covering end-of-life costs. Term life insurance isn’t designed for this purpose because it only lasts for a set period—meaning it could expire before you pass away, leaving no payout for final expenses. The goal of term life insurance is to provide financial protection while you’re paying off debt and building savings, so by the time the policy ends, you no longer need life insurance.

Dave Ramsey and his team advise against buying life insurance solely for covering funeral costs. Instead, those expenses should ideally come from your emergency fund or savings. In rare cases, if an older individual has no savings and no other financial options, a burial policy from a company like Senior Legacy Insurance might be worth considering. However, these policies typically include cash value components, which the Ramsey team generally does not recommend. If you’re looking for the best way to protect your loved ones financially, focusing on paying down debt and growing savings is the smarter long-term approach.