Burial insurance premiums typically start out with much higher premiums than other kinds of insurance because of the cash value features that are included. One important advantage is that burial premiums are fixed amounts, which means they cannot change even if your health deteriorates. With a term life insurance policy, you run the risk that your health may worsen just when it's time to renew your policy. Because health reviews are often required for renewing term policies, rates can increase substantially. Not so with burial insurance.

Remember that during the first years of a burial insurance policy, most of the amount of the premiums is applied toward covering sales commissions, underwriting and administrative expenses. Over time, this changes, and more of your premium produces cash value. In order to get the most from a burial insurance policy, most experts recommend that you hold it for at least ten years.