Life Insurance for Burial Expenses?
Although there are many reasons for purchasing life insurance, one thing is for sure – most of us will likely have at least some amount of funeral, or “final,” expenses upon passing away. Unfortunately, without some type of insurance to pay for these costs, the responsibility usually falls to our family or other loved ones – which could mean having to dip into their savings, or worse yet, needing to pay on credit.
If you’re between the age of 50 and 85, having life insurance for burial expenses can ease a lot of financial stress for those you care about. And the good news is that the premium for this type of coverage is typically very affordable.
What is Burial Insurance?
Burial insurance is life insurance coverage that is purchased for the purpose of paying your funeral costs and other related expenses. This type of life insurance coverage is often also referred to as funeral insurance or final expense life insurance.
Burial insurance is often purchased as a permanent, whole life policy. This means that the coverage will last throughout the duration of your lifetime, as long as you continue to make the premium payment.
In many cases, the amount of benefit that is purchased on life insurance for burial expenses is between $5,000 and $25,000. However, depending on the insurance carrier, there are policies that provide the option to obtain a higher amount of coverage.
These types of life insurance policies are also known for paying out the benefits fairly quickly. That way, your loved ones will be able to ensure that final expense debts are taken care of right away. In some cases, the insurance benefit can even be paid directly to a funeral home.
Why Consider Having a Burial Life Insurance Policy?
There are many reasons to consider having life insurance for burial expenses. First, most people will incur at least some amount of final expenses. These can include your funeral costs, which can typically encompass a memorial service, as well as a burial plot, headstone, and flowers, and possibly even other expenses such as flowers and transportation.
When all added together, these expenses can oftentimes exceed $10,000. So, having an insurance policy to cover such costs can be beneficial to family or other loved ones who may otherwise be required to pay out-of-pocket.
What Should You Look for In a Burial Insurance Policy?
When looking for a burial insurance policy, it’s important that you obtain the best policy for your specific needs. With that in mind, there are several criteria that you should have a good understanding of as you review your potential options. These include the following:
- Amount of Benefit – As with the purchase of any life insurance policy, you will want to ensure that you have the proper amount of death benefit coverage. In this case, getting an approximate figure for the cost of a funeral in your area – as well as the other ancillary costs – can be helpful. Some purchasers of burial insurance will also add an additional amount of coverage for other potential expenses, such as uncovered medical costs and / or other debts that their loved ones may end up being responsible for.
- Type of Benefit – The type of benefit payout on the burial insurance policy can also make a difference. As an example, with life insurance for burial expenses, there are two primary types of benefit levels that are available. These include level benefits and graded benefits. If you purchase a policy that has level benefits, then 100% of the stated death benefit will be paid out to the beneficiary, regardless of when the insured passes away. With a graded death benefit, though, there is generally a waiting period of two years before 100% of the death benefit will be paid out. In this case, if the insured dies during the first two years of policy ownership, only a percentage of the policy’s face amount would be paid.
How to Find the Right Burial Insurance
If you’ve been considering life insurance for burial expenses, you probably know that there are a lot of options that are available to you. But what you might not realize is that the price for burial insurance can differ quite a bit from one insurance company to another – even for the very same coverage.
This is why it makes sense for you to shop and compare quotes through an independent Florida agency like ours that can show you, in an unbiased manner, several different burial life insurance plan options so that you can choose the one that is best for you.
Click Final Expense Life Insurance for a free no-obligation quote
Nisona serves the insurance needs of the Treasure and Space Coast.