Burial policy is an insurance policy used to cover the costs of funeral or cremation expenses for a person who has died. Burial insurance is paid out directly to the beneficiary who may need the money to cover funeral or cremation expenses, medical bills, or debts of the policy holder.
While life insurance policies are often worth thousands or millions, burial insurance policy is usually from $5,000 - $25,000.
[Last updated in June of 2021 by the Wex Definitions Team]