It's often a top concern for consumers shopping for life insurance to provide money for their families so that they won't be hamstrung by the financial costs of a funeral.
Insurance expert Barbara Marquand says families have a number of options if they're looking for a small life insurance policy to cover burial costs. On the one hand, they could seek a policy that merely covers funeral costs and nothing else. Companies do offer what's called guaranteed acceptance policies, which don't require a health exam and simply provide a small sum for burying.
However, the expert notes a person could receive a better rate and additional money toward other outstanding costs if they take a health exam and apply for a term life insurance policy. Some funeral policies actually allow customers to lay out their funeral plans ahead of time and purchase what's call preneed life insurance to cover those expenses. However, prices can get high for that coverage as well, said the report.
Experts advise older Americans take more than just funeral costs into consideration when buying life insurance. Matters such as outstanding debts can be a burden on one's family after they pass away.