What’s the difference between pre-need insurance and final expense insurance?  Pre-need insurance is a pre-need burial insurance plan that is sold by funeral homes. The pre-need policy allows you to plan your funeral and pay for it in advance while you’re still living with either a lump sum payment or installments. All the proceeds are used by the funeral home for your burial cost. You’re committed to the funeral home that sold you the policy. No money goes to your loved ones.

A final expense policy will pay for your funeral cost, any final expenses and any remaining money will be given to your named beneficiary. The insurance policy can be assigned to any funeral home to cover funeral cost or the proceeds can be given to your loved ones to reimburse them for the funeral cost. If there are any proceeds remaining your named beneficiary will receive them.