KEY differences between a Life Insurance and a Funeral Plan

Which is better: Life Insurance or a Funeral Plan?

The truth is, Life Insurance and a Funeral Plan are both equally important.

Many would disagree with us, but you will be able to decide what is best for your needs.

There is never a perfect product or one size fits all situations.  

We all have different needs, wants, and goals.   Therefore, a funeral plan could be a right fit for one family; another family may only need life insurance; another family may want a combination of both arranged; or a family may not need it based on their net worth.  

faq funeral plan life insurance

"Funeral Plan or Life Insurance ?"

Different scenarios and factors apply that can be essential when deciding if you need a funeral plan, life insurance, a combination of both, or none at all. 

We ALL Get There

We know for sure:  at one point, we will reach the end of the road. Some call it borrowed time, some call it death.

Not to be morbid or anything, but it is the plain truth.  I don’t know why most people get “iffy” talking about this subject or matter at hand, to say the least. 

We never want it to happen to us, yet when it happens to someone we are quick to ask “What happened, how did it happen, and why did it happen?”

Then we catch ourselves scrounging endlessly on Facebook, Google, GoFundMe pages, obituaries, or news headlines to see “what in the world happened.”

life insurance funeral plan

Bottom line, someone is hurting. Someone is sad. Someone will need help and comfort during these hard times to follow

Experiencing the death of a loved one is filled with uncontrolled emotions. You have so much on your mind.

The last thing that you want, is to be worried about what happens next or be completely unprepared. 

It’s already hard enough.

Funeral Planning Takes Time

You can go about planning a funeral a number of different ways. 

Having a Life Insurance is ONE WAY and a Funeral Plan the OTHER WAY, or BOTH.

As mentioned earlier, there is no right answer as to: IF a Life Insurance is better than a Funeral Plan. Regardless your route, dying will cost someone money.




Whichever route you decide to go, make sure you start NOW if you have not. Life is unpredictable and it is always advised to be prepared for the worst.
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How Do YOU Pay For a Funeral?

Life Insurance Funeral Plan


Life Insurance WAY

Life insurance helps pay funeral costs. Common Life Insurance terms used for funeral expenses include:

  • Final Expense
  • Burial Insurance
  • Whole-Life
  • Term-Life
  • Universal Life
  • Annuity

Funeral Plan WAY

Funeral plans help pay funeral costs. Common Funeral Plan terms used for funeral expenses include:

  • Plot and Burial Plan
  • Pre-Paid Funeral Plan
  • Cremation and Funeral Service

Break-Down: Life Insurance & Funeral Plans

Time to get to the “bottom-line” of this constant controversial argument: Life Insurance vs Funeral Plan.

Life Insurance and Funeral Plans both have Pros and Cons that should be considered when reaching your balance point or making a decision on which route to go.

Let’s do a “Benjamin Franklin Close” to help us make our decision.

Life Insurance


  1. Your Beneficiary would receive a check upon your death.
  2. Can have money left over to replace lost income.
  3. Can have funeral and burial services anywhere.
Life insurance options


  1. May need to qualify, depending of which product of life insurance.
  2. Premium prices vary depending on age and health.
  3. Not Guaranteed depending on product and policy terms.

Funeral Plans


  1. Funeral and plot services paid for.
  2. Traditional for families that want to be buried or cremated in the same location or plot.
Life Insurance Paradise


  1. No money left over for family to replace lost income.
  2. Restricted to location where purchased, land or chain of funeral homes.
  3. Not guaranteed on inflation costs and business staying existent.
  4. Limited to “packages” or “add-on’s”.


Only YOU will know the “best perfect balance.” 

In reality it comes down to keeping up with your needs as they change.

Find out what is best for you and give it a try.

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Stay tuned for some more juicy topics to follow.