Who should buy burial insurance? Well, the short answer is: everyone. According to the National Funeral Directors Association, funeral costs can easily exceed $6,000—and that’s just for the funeral, the figure doesn’t include associate expenses for the burial at the cemetery, a grave stone or other extras like flowers or placing a lengthy obituary in the local paper.

If you haven’t set aside funeral expense money and instructions in your will, then your funeral cost will be paid from your estate, which will reduce the amount your heirs receive from your estate.

Don’t assume that your funeral expenses will be far less if you opt for cremation instead of burial; the cost will be less because there will be no casket or casket liner, but crematorium expenses and ash receptacles don’t come cheap either.

Sometimes it is simply easier to make separate arrangements for burial expenses. You can do this by taking out a burial insurance policy. Unlike a life insurance policy or an annuity, burial insurance is strictly used for all of the expenses surrounding your funeral arrangements. Ideally, you should purchase a policy that will cover every contingency so that the burden is not put on your family or friends.

Most burial insurance policies come with high premiums because there are generally no restrictions on age or health issues, which drive the overall cost of the policies up. If you do choose to purchase this type of insurance, be sure to read the policy carefully before you sign on the dotted line. Some policies may have restrictions, such as not covering 100% of the expenses if the policy holder dies within a certain period of time after taking out the insurance.

Another option is to purchase “preneed” insurance from the funeral home of your choice. You can cover the service you want with the funeral director and then buy a policy that will cover the exact amount of expenses; you simply make the funeral home the of the policy and no one will have to worry about your final expenses. Check with your state’s laws to be sure you are allowed to name the funeral home as your beneficiary; most states allow it.

Life insurance is a touchy subject. The Insurance Information Institute states that 1/3 of United States families do not keep their life insurance up-to-date. As unpleasant as it may be to think about the inevitable, there are many benefits to purchasing life insurance. Here are three tips to purchasing life insurance.

Choosing Insurance

Unless one is wealthy, it does not make sense to make a cash-value payment on life insurance. For the majority of individuals, a term insurance plan makes sense. Some insurance companies offer month-to-month or year-by-year subscriptions. The right policy is different for everyone. Some life insurance policies expire when one outlives the insurance policy, and no one will receive death benefits.

Stay in Shape and Give Up Unhealthy Habits

Some insurance policies will not cover things like smoking tobacco. Some insurance companies may charge extra while one is smoker. A medical exam is required, and reducing high cholesterol and blood pressure reduces health complications and risks. Making simple changes to one’s lifestyle can reduce costs.

Decide Which Company to Buy From

A lot of people fail to consider the company they buy their insurance policy from. Not all insurance companies are created equal. There is a big distinction between the bet life insurance companies, and an insurance policy is only as good as the organization that it is bought from. The best life insurance policy in the world is no good if the company behind it is on shaky ground. Some things to consider are their financial standing, quality of investments, and other details.

These three areas are essential when shopping for life insurance. While there are many complex issues around life insurance policies, they can be tackled later. One should be quite cognizant of these three areas when making a decision.