Consumers try really hard to only buy what they need. Its good to only buy what you need for groceries because excess groceries go to waste. Life insurance, on the other hand, never goes to waste no matter how much is purchased. Even if a life policy is only meant to cover funeral expenses, any amount of coverage above that cost can be used by the beneficiary for other needs. Technically, the beneficiary doesn’t have to spend the insurance proceeds on a funeral; the money can be spent on anything the beneficiary desires. Its also good to error on the side of getting more than enough coverage because of inflation. People ask me all the time how much coverage they need for a cremation. I’m careful to only give rough estimates because one funeral home can have very different prices than another funeral home. $5,000 of coverage should cover a cremation and ceremony. Or you can get half the coverage if no ceremony is needed. Use this quoting tool to see what different amounts of coverage cost.