Laying a loved one to rest is an inevitable part of life. However, it’s also an expensive event with many unfamiliar logistical and financial aspects. That’s where burial insurance comes into play. This type of policy provides financial protection for families who wish to honor their loved ones with a befitting tribute.
In this informative guide, we explore five popular types of insurance to help you make an informed decision about the best choice for your unique situation.
What Is Funeral Insurance?
Funeral insurance is a type of life insurance policy that helps offset the costs associated with end-of-life arrangements. Death benefits are typically paid out to beneficiaries, family members, or other designated individuals after the policyholder passes away.
The death benefit is designed to cover funeral expenses such as burial plots and services, as well as any other related costs. It can also provide financial support to help families during a difficult time.
What Is Burial Insurance?
Burial insurance is a type of life insurance policy specifically designed to cover funeral expenses such as burial plots and services, along with any other related costs. The death benefit from the policy is typically paid out to designated individuals or beneficiaries upon the policyholder’s passing.
This type of insurance can help ease some financial burden for family members during a difficult time and can also provide peace of mind knowing that funeral costs are taken care of.
What Is The Difference Between Funeral Insurance And Burial Insurance?
The main difference between funeral insurance and burial insurance is that funeral insurance covers the costs associated with end-of-life arrangements, while burial insurance is specifically designed to cover the expenses related to burial plots and services.
Funeral insurance can include any other related costs, such as taking care of medical bills or making pre-paid arrangements for funerals. Burial insurance, on the other hand, will generally only cover expenses associated with the deceased person’s plot and service.
Understanding The Types Of Burial Insurance
It is typically issued with smaller face amounts ranging from $5,000 to $25,000, and is designed for individuals between the ages of 50 and 85.
There are three main types of burial policies:-
Guaranteed Issue Policies
Guaranteed issue policies are the most commonly used type of cheap burial insurance policy. This type of policy requires no medical exam or health questionnaire. These policies typically have lower death benefits (the amount your beneficiaries will receive) than other types of policies and are typically more expensive as well.
However, if you’re looking for peace of mind without having to answer any questions about your health or medical history, a guaranteed issue policy may be the right choice for you.
Simplified Issue Policies
Simplified issue policies require that applicants answer some basic questions about their health but do not require a medical exam. These questions usually focus on pre-existing conditions like diabetes or heart disease that could impact your eligibility for the policy.
Simplified issue policies tend to have higher death benefits than guaranteed issue policies and also tend to be more affordable as well.
Level Benefit Policies
Level benefit policies are similar to simplified issue policies in that they require applicants to answer some basic questions about their health but do not require a medical exam.
However, unlike simplified issues policies that may ask specific questions about pre-existing conditions, level benefit policies simply ask general questions about an applicant’s age and lifestyle habits such as smoking or drinking alcohol.
Level benefit policies also offer the highest death benefits and lowest premiums among all three types of best burial insurance policies.
How To Choose The Right Final Expense Insurance Policy?
Final expense insurance is a type of policy designed to cover end-of-life insurance, such as funeral costs and burial fees. When selecting a final expense insurance policy, there are several factors to consider.
We’ll discuss the key factors you should take into account when shopping for a final expense policy :-
Costs Of Funeral Services
Funerals can be expensive, so it’s important to make sure that your policy covers all the costs associated with them. Some things you may want to consider include the cost of a casket, burial plot, headstone, cemetery fees, flowers, service fees, transportation costs and more.
Depending on where you live and the type of funeral services you would like to have for your loved one, these costs can vary significantly. Be sure that your policy covers all these expenses so that you don’t have any surprise costs after the fact.
When purchasing a funeral or burial insurance policy, you will need to designate beneficiaries who will receive the benefits from your policy upon death. It’s important to choose your beneficiaries carefully so that they are able to access the money quickly and easily when needed.
You should also make sure that there is enough money in the policy for all the beneficiaries designated in case there are multiple people listed on it.
The coverage limit on your funeral insurance policy is another key factor to consider when making your decision. Most policies have a maximum amount that they will pay out upon death; this number varies depending on which best final expense insurance companies
you choose and what type of coverage you select.
Make sure that this amount is sufficient enough to cover all the expenses related to your funeral or burial services so that there aren’t any surprises down the road.
Why Burial Insurance Is Important?
With the increasing costs of funeral services and burials, which can range from $7,000 to $10,000 or more, ensuring that your loved ones can manage financially after your passing is of utmost importance.
Burial insurance eases this burden by providing a death benefit that can cover funeral costs, outstanding medical expenses, credit card debts, and other final expenses. This financial security allows your loved ones to focus on mourning and healing without the added stress of figuring out how to pay for your final expenses.
Eligibility Requirements For Burial Insurance
Burial insurance policies are available to seniors aged 50-85, but keep in mind that age requirements vary by provider. Most companies require you to be at least 50 years old, while others might require you to be 65 or even 70 years old.
It’s also important to remember that if you wait until later in life to buy a policy, your premiums will likely increase due to greater risks associated with older age groups.
The Benefits Of Burial Insurance
Planning for funerals can be expensive and often comes unexpectedly. Burial insurance, also known as funeral insurance or final expense insurance, is a type of life insurance policy that covers the costs associated with burial and/or cremation expenses.
It enables individuals to plan ahead so they don’t leave their loved ones with a financial burden when they’re gone.
When it comes to burial insurance, you only need to pay a small premium each month in order to have coverage in place that will help cover funeral expenses when you pass away.
No medical exam is required and most policies are issued instantly, making it convenient and easy to apply for. This way you can provide peace of mind for your loved ones even after you’re gone.
Tax-Free Cash Benefit
Burial insurance pays out a tax-free cash benefit directly to the beneficiary upon your passing. This means the money doesn’t count as part of your estate and isn’t subject to probate laws, so there won’t be any additional fees or taxes taken out before the beneficiary receives the funds.
This makes an attractive option for those looking for an affordable way to provide financial security for their family without leaving them with complicated legalities after they pass away.
Burial Plan Options Available
The best thing about burial insurance is that there are numerous different types of plans available depending on your needs and budget. From whole life plans that guarantee level premiums throughout your lifetime, to term plans that offer coverage for a specific number of years, there’s something out there that fits everyone’s needs and budget.
Plus, many insurers offer flexible payment options so you can choose how often you make payments (monthly or annually) and how much coverage you want (up to $50K).
Cost Of Funeral Insurance
The average cost of funeral insurance depends on several factors, including your age, gender, health history, and the amount of coverage you need. Generally speaking, the older you are when taking out the policy, the higher your premium will be.
On average, you can expect to pay anywhere from $30 to $100 per month for a funeral insurance policy. This may seem like a lot at first glance, but consider that two days in a hospital can easily cost more than that.
Also keep in mind that if you select an inflation-indexed policy where premiums increase every year to keep up with inflation, then your premium payments could also increase each year.
When shopping for funeral insurance policies, it pays to compare different providers and their offerings before making any decisions.
Are There Other Alternatives?
Another alternative is a prepaid funeral plan. These plans allow you to pay for your funeral in advance, ensuring that all of your wishes will be taken into account when it comes time for your service.
This type of plan also offers other benefits such as flexible payment terms and sometimes even discounts on services or products related to funerals.
Finally, some individuals may opt for self-insuring their funerals. This involves setting aside funds each month specifically for funeral costs so that if something were to happen unexpectedly, you would have the finances necessary to take care of any additional expenses associated with your service.
Cost Of Burial Insurance
The cost of burial insurance varies based on factors such as age, gender, health status (if applicable), coverage amount desired and more.
Generally speaking though you can expect to pay anywhere from $25-$50 per month for coverage in the range of $5k-$25k. Some companies may offer lower premiums if you opt for a higher deductible, so it pays to shop around before making any decisions.
Additionally some states have minimum coverage amounts they require when purchasing a policy – so be sure you know what your state requires before committing to a policy.
Are There Other Alternatives?
Yes! If purchasing a policy isn’t feasible there are other options available – many states offer pre-paid burial accounts which allow individuals to make small payments towards their funeral expenses over time rather than paying one lump sum up front like you would with traditional life insurance policies.
This can make covering expenses more manageable for those on fixed incomes or who don’t want to commit large sums up front.
Another option is setting up a trust fund specifically for funeral expenses – this will require some work on the part of your loved ones after your passing but it at least ensures that some funds are set aside specifically for these purposes.
Burial Insurance With No Waiting Period
Burial insurance with no waiting period is an affordable way to provide you and your loved ones with financial protection in the event of an untimely death.
This type of insurance policy does not require a waiting period before it pays out benefits for final expenses, such as funeral costs, medical bills and debts related to the deceased’s estate.
It is also relatively inexpensive when compared to other types of life insurance policies, so it can be a great option for those who want to make sure they are prepared should something happen unexpectedly.
Finding The Right Burial Insurance Provider For You
When planning your final expenses, it’s important to make sure you find a burial insurance provider that meets your needs. This can be a difficult process, as there are so many different burial insurance providers out there.
It’s important to do your research and compare the different policies and offerings before making a decision. To help you get started, here are some of the top burial insurance providers in the country.
Mutual Of Omaha
Mutual of Omaha is an industry leader in burial insurance. They offer competitive prices, ranging from $2,000 to $25,000 in coverage amounts. And with their Accelerated Death Benefit option, policyholders can access up to 50% of their death benefit if they’re diagnosed with a terminal illness.
AIG Life Insurance Company
For nearly a century, AIG Life Insurance Company has established itself as a powerhouse in the life insurance industry. They offer burial plans that are specifically designed for those over 50, allowing policyholders to take advantage of riders such as an Accidental Death Benefit and Guaranteed Insurability rider.
This makes it possible to increase the coverage amount at various points in their lives without having to go through a medical examination or any other underwriting requirements.
John Hancock Life Insurance Company
John Hancock provides flexible coverage levels, from $5,000 to $50,000. Additionally, optional riders may be added for an extra cost; such as the Terminal Illness Rider or Guaranteed Insurability Rider which enables policyholders to adjust their coverage over time without medical exams or additional underwriting.
Gerber Life Insurance Company
Gerber Life Insurance has been providing life insurance products since 1967 and offers policies ranging from $5,000 to $50,000 in coverage amounts as well as optional riders such as Accidental Death Benefit Rider or Return of Premium Rider.
This allows policyholders to receive some or all of their premiums back should they outlive their policies.
Frequently Asked Questions
What does Funeral Insurance cover?
Funeral cost insurance typically covers costs such as funeral services, burial costs, casket purchase, family visitations, and more.
Is Funeral Insurance the same as Burial Policy Insurance?
No, these are two different types of policies but both can provide protection for financial burdens related to death.
How much are Funeral Costs covered by Funeral Expenses Insurance?
The amount and type of coverage can vary from provider to provider so it is important to check what you are covered for before buying a policy.
Are there any other plans available apart from Burial Plan Insurance?
Yes, there are several other options available such as term life insurance and whole life insurance policies which may also be suitable depending on your needs and circumstances.
Do I need to take out separate Insurance for Funeral Expenses if I have a Life Burial Insurance policy?
No, many Life Burial Insurance policies already include some form of coverage for funeral costs within the general policy terms & conditions – it is best to check with your provider before taking out any additional coverages in this area.
Who offers the Best Burial Insurance Coverage Options?
The best final expense insurance companies vary based on each individual’s specific needs and requirements – It’s recommended to do some research before selecting a plan that’s right for you or consult an expert financial advisor in order to find the right fit!
Where can I find Cheap Burial Insurance without skimping on Coverage?
This will depend on your personal situation but there may be multiple inexpensive products available offering decent end-of-life insurance – It’s important to shop around and compare rates between providers in order to gain an understanding of what product will suit your own circumstances best!
Burial insurance can help provide peace of mind knowing that your loved ones won’t have to shoulder the financial burden associated with end-of-life costs such as funeral expenses or medical bills. When shopping for a policy, make sure you understand exactly what type of coverage you’re getting—and consider factors like your age and health condition before committing to a plan.
With some research and careful consideration, you can find an affordable burial policy insurance that meets your needs and provides financial protection in case something unexpected happens.