Burial insurance is designed to take care of your final expenses. It can also be referred to as funeral insurance. This type of insurance coverage may only be used to cover the expenses directly related to your funeral. There is no lump sum payment like what we are used to seeing with traditional life insurance. You may think of it like pre-paying your funeral costs before you die so that here will be money paid out at that time. There are however specific guidelines on how that money can be used which is different from life insurance.