Burial Life Insurance
As a senior or even as a person over the age of 50, you might want to seriously consider purchasing burial insurance - which is also known as final expense, funeral, or preneed insurance - in order to protect your family. Just as with other forms of life insurance, burial insurance provides your beneficiary with a payout upon your death. Unlike many other forms of life insurance, however, you do not need to undergo a medical examination in order to acquire funeral insurance. In addition, the policy is in place in order to specifically pay for your burial costs.
Helping Your Family Through Tough Times with Burial Insurance
All forms of life insurance are meant to help you help your loved ones deal with the financial loss they experience after you die. With preneed insurance, however, you are specifically helping your family cover the cost of your funeral. Many people fail to realize that funerals can be quite costly. In fact, you can easily spend thousands of dollars on burying a loved one. Therefore, you can typically find burial insurance policies with coverage ranging anywhere from $2,500 to $30,000.
Although $2,500 to $30,000 may seem like a lot of money, it is relatively small when compared to other forms of life insurance. As a result, funeral policies are typically far less expensive to maintain than other types of life insurance. Therefore, if you cannot afford to carry a larger policy, but you want to make certain your family does not have to go into more debt in order to cover your funeral expenses, this type of policy is certainly one that is worth looking into.
Obtain a Burial Insurance Policy Without Any Hassles
Another benefit to obtaining preneed insurance is the fact that it can be obtained without any hassles. Since the payout is relatively small, you can typically obtain one of these policies without needing a medical examination. In addition, the application form is typically quite short and simple.
Since there is no medical examination required in order to obtain burial insurance, it is also a good choice for those who smoke and those who are obese as well as for those with diabetes or other medical conditions. Unfortunately for those who suffer from these medical conditions, obtaining a life insurance policy can be difficult if not impossible. For those who are able to obtaining a policy, it is often quite costly. With burial insurance, you can keep your family protected despite the medical conditions that you suffer from.
Obtaining the Right Funeral Insurance Policy for You
Although it is a good idea to purchase funeral insurance in order to help pay for your final arrangements, it is also essential to be weary of potential scams. Unfortunately, some scam artists are taking advantage of the elderly by duping them into paying more for their insurance premiums than they will receive in benefits. This has become such a problem that some states have considered banning preneed insurance altogether.
When you work with a reputable company in order to purchase your burial insurance, however, you can be sure you will receive the benefits you need at a reasonable cost. After all, the American Association of Retired Persons reports that funeral and burial expenses are among the most expensive purchases made by older Americans and that the average funeral costs for an adult range from $4,500 to $5,500. For an in-ground burial, the expense goes up another $2,400 or so. Worse yet, the cost of funerals continues to grow.
In order to make sure you are working with a reputable company and you are getting the type of coverage you need, be sure to do the following when purchasing burial insurance:
- Check into state laws regarding funeral insurance
- Discuss your options with your family as well as with your lawyer in order to make sure the policy is consistent with your estate planning
- Verify the license of the company before doing business with it
- Request a written price list of available services and goods from a funeral home, as the Federal Trade Commission requires funeral homes to provide this information
- Do not sign any documents that are not filled out completely and do not accept documents that have not been signed in your presence
It is important to remember that funeral directors may not provide you with a price guarantee, which means the cost of the services and products you choose may go up. Therefore, the payout from your burial insurance may not be enough to cover all of your expenses when you do pass.
Putting Together the Funeral Policy That is Right for You
When it comes to putting together a preneed policy, there are generally no two that are alike. This is because you will sit down with your insurance agent in order to discuss the things you want for your funeral. Then, your agent will help you determine the amount of coverage you need for the funeral you want. Some of the products and services you will need to consider when putting together a policy include:
- Choosing between a casket or urn
- Deciding if you want to be cremated
- Cost of embalming, which is not legally required unless there will be a public viewing
- Choosing between a burial vault or grave liner if you are to be buried
- Grave market
- Flowers
- Cost of the plot and of digging the grave if you are to be buried
- Hearse or any other funeral vehicles
The type of funeral you want will determine the amount of your policy, but many insurance companies will not go beyond $30,000 for a preneed insurance policy.
