Burial Insurance may sound like a morbid topic, but by thinking about it now, you’re actually making a wise choice that will give you and your family benefits in the future.
Nobody knows what will happen as time goes on, but it is always a good idea to stay prepared. It is, however, understandably tough for people to set aside money for death when we spend most of our lives trying to get by.
But does this mean your family members should suffer from the additional stress of managing funeral costs when they’re trying to deal with the death of their loved one?
Of course, not! If you agree, keep reading to find out everything you need to know about burial insurance.
What is Burial Insurance?
Burial insurance is used for covering a person’s funeral services and other death-related costs when they pass away. Also known as “final life insurance” or “funeral insurance”, this is basically a type of permanent life insurance. However, it does have some specific conditions that make it different.
The burial insurance is ideal for senior citizens with potential health issues and issued for people who are 50 and above. It helps people who don’t have other forms of savings or life insurance to make arrangements for their funerals without placing the burden on their families.
Why Should You Think About it?
If you’ve been blessed enough to never be directly involved in a funeral, you might not have an idea of the costs. But let me tell you – it can be quite expensive. While the family is mourning and going through a difficult time mentally, they also have to keep several costs in mind.
For instance, apart from the actual event costs, bills might need to be paid, the body needs to be moved, the deceased’s house might need to be cleaned, and you might even have to hire a lawyer to settle estate issues.
In such cases, it’s very difficult to think about financial expenses. People are already in shock and trying to cope with the circumstances. So, it makes things worse if the family has no way to pay for a proper funeral for their family member.
This is where burial insurance comes to the rescue.
The Process Behind Getting Burial Insurance
It’s really straightforward to get a burial policy. There’s no need for you to be physically present in front of an insurer – you can buy it online or by phone. You’d be surprised to know that there’s also no need for a medical exam.
You’ll be asked some questions about your age, smoking habits, and whether you have any health conditions. This process seldom disappoints, and in some cases, there is guaranteed acceptance. For other policies, there may be a two-year waiting period where you pay the premiums before you are eligible to collect the money.
However, before deciding on a burial policy, make sure to do your research. For instance, even though the policy sounds fantastic, you still need to get a review of the colonial penn policy online, before making such a huge commitment.
What Will it Cost You?
Burial insurance might be more expensive than other types of policies. However, it is possible to buy one with even $10, depending on your plan, insurance provider, and the state of your health.
You can pay premiums according to your convenience – be it annual or monthly. As long as you keep paying these premiums, your policy won’t expire.
Premiums may vary according to your current condition. For instance, it may be higher for smokers than non-smokers and older people. However, once you’ve signed up, there’s no chance of your premiums increasing.
Who Gets the Benefit?
The death benefit you will get depends entirely on what you select and what your insurer will offer. Usually, the amount ranges from $5,000 to $25,000.
This cash benefit will be paid to your beneficiary, aka whoever you want to be in charge of your funeral expenses. You can also choose more than one beneficiary and divide the benefit amongst them. This can be your children, spouse, or other relatives.
The beneficiaries can use this money to manage the expenses in any way they want. They also have control over the leftover money from the funeral costs and can use it for other reasons, without any problems. There are no rules to follow about how the money is to be spent.
How to Decide How Much to Apply For
Deciding on the amount of burial insurance can be confusing. So, you’ll need to check out some funerals homes to get an idea of how much it may cost.
This may sound gloomy but remember you’re being practical, and it will ultimately benefit your family. Sure, you can look at online statistics, but there’s no guarantee as costs may vary.
Also, keep in mind that funeral costs will change with time and location. So, if your loved one moves or passes away 10 years later, the prices will go up. So, the safest thing to do is add an extra 30 percent to whatever amount you select.
Even if it’s more money than necessary, ultimately, your beneficiaries get to use it, so it’s not going to be a problem. It is better to be covered and ready for all sorts of surprise expenses.
Cashing Out the Benefit
Cashing out the benefit, in case of a death, is really simple. Your beneficiary just has to show the insurer the death certificate. Sometimes, it may take a while to get the death certificate.
However, some funeral homes just need you to show them a copy of the policy to proceed. Even just a phone call with the insurer, guaranteeing that the payment will be complete, is enough.
Now that you know all about burial insurance, hopefully, you’ll be able to make your decision. However, make sure to compare different quotes, and keep looking for one that truly suits your needs. It’s also vital to understand what kind of policies you are eligible for, so you don’t waste your time on the wrong package.