The short answer
Veterans have burial benefits most people don't, but those benefits have limits and rules.
This guide explains what the VA may cover and where a policy helps.
Part of our complete guide: Final Expense Insurance: The Complete Guide.
Quick answer
VA burial benefits help, but rarely cover everything. Some VA benefits arrive as reimbursement later. Keep your DD-214 with your policy.
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On this page
- What VA burial benefits cover
- Where VA benefits stop and family costs begin
- Getting the paperwork in order
- How much final expense coverage do you need?
- Veterans burial benefits and life insurance: how final expense insurance works
- What affects the cost of final expense insurance?
- Is the payout taxed?
- What if you miss a payment?
- Ways to pay for final costs, compared
- Is final expense insurance right for a veteran?
- Frequently asked questions
What VA burial benefits cover
Eligible veterans may qualify for VA burial benefits. Depending on service and circumstances, these can include burial in a VA national cemetery, a headstone or marker, a burial flag, a Presidential Memorial Certificate, and an allowance toward burial and funeral costs.
Eligibility and amounts depend on the veteran's service, discharge and the circumstances of the passing, and some benefits extend to an eligible spouse. The VA confirms what applies; families usually apply after the funeral for reimbursement.
We cover this in detail in Guaranteed Acceptance Final Expense Insurance, Explained.
Where VA benefits stop and family costs begin
VA burial benefits help, but they rarely cover everything a family chooses. Funeral home services, a viewing, transportation, flowers and final bills can still fall on the family, and some benefits arrive as reimbursement later.
- A national cemetery burial can reduce cemetery costs, but the funeral home still bills its own services.
- Reimbursement takes time, while the funeral home usually wants payment up front.
- A final expense policy pays the beneficiary directly, so the family has cash right away.
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Getting the paperwork in order
A little preparation makes VA benefits and insurance much easier for your family to use.
- Keep your discharge papers (DD-214) with your policy and will.
- Ask the VA about pre-need eligibility for burial in a national cemetery.
- Tell your beneficiary where the policy and papers are, and what kind of service you want.
How much final expense coverage do you need?
Start with the kind of service you want and the local cost of it. Add any final medical bills or debts you would not want to leave behind. Then subtract savings or other life insurance set aside for this purpose.
Many people choose an amount that covers the service and a little extra for bills. A local funeral home's price list is a good reference.
Veterans burial benefits and life insurance: how final expense insurance works
Final expense insurance is designed to make one hard week easier for your family. It pays a modest benefit that can cover funeral and burial costs, medical bills and other final expenses, so no one has to scramble to pay them.
- Smaller amounts than a typical life policy, sized to final costs.
- Lasts for life as long as premiums are paid.
- Simpler application, usually with no medical exam.
- Flexible use: your beneficiary decides how to spend it.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares final expense insurance options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
What affects the cost of final expense insurance?
Final expense pricing depends on your age, your answers to the health questions, tobacco use and the amount you choose. The type of policy you qualify for has a big effect on the price.
Because carriers word their health questions differently, an independent agent can often find a level-benefit policy even when one insurer would only offer a graded plan.
Is the payout taxed?
Life insurance death benefits are generally income-tax-free to the beneficiary. That is one reason life insurance works well for a goal like paying off a mortgage: the amount your family receives is generally the amount they can use.
There are exceptions. Interest paid on a benefit that is held and paid out over time can be taxable. Very large estates can owe estate tax, and a policy you own counts toward your estate. Policies that were sold or transferred for value can also lose some of the tax benefit.
Tax rules change and every situation is different. For anything beyond the basics, talk with a tax professional. We can explain how a policy works, but we do not give tax or legal advice.
What if you miss a payment?
Life insurance only works if it is in force when it is needed. Premiums can usually be paid monthly, quarterly or yearly. Paying yearly can cost a little less overall.
If you miss a payment, most policies have a grace period, often about a month, when coverage continues. After that the policy can lapse. Some policies can be reinstated within a set time, but the insurer may ask new health questions.
Tip: Automatic payments from a checking account are the simplest way to avoid a lapse.
Ways to pay for final costs, compared
Families usually cover final costs in one of four ways. Each works differently, and many people combine two.
| Feature | Who gets the money | Can be used for anything | Lasts for life |
|---|---|---|---|
| Savings set aside | Your estate or a joint owner | Yes | If it isn't spent first |
| Prepaid funeral plan | The funeral home | No, set services | Yes, with that provider |
| Final expense insurance | Your beneficiary | Yes | Yes, while premiums are paid |
| Term life insurance | Your beneficiary | Yes | No, it ends with the term |
Savings can be the simplest choice if they will still be there. Insurance helps when savings are thin or already promised to other needs.
Is final expense insurance right for a veteran?
Often a good fit
- you want the funeral paid without your family waiting on reimbursement.
- you want a service or burial that VA benefits won't fully cover.
Maybe not the right fit
- savings and VA benefits will clearly cover what you want.
- you already have permanent coverage earmarked for final costs.