Dealing with the loss of a loved one is never easy. And the last thing you want is for your family to worry about finances during such a challenging time.
That’s where Final Expense Life Insurance comes in. This type of insurance is also known as burial or funeral insurance.
It helps pay for things like medical bills and funeral costs when someone is very sick or has passed away.
Securing this coverage ensures your family can focus on grieving and healing with peace of mind.
This way, they can avoid financial stress during a difficult time.
Our guide is here to help you understand how burial insurance works and how it can benefit your family.
You can make informed decisions by learning about the coverage, benefits, and application process. It will provide your loved ones with the support they need when the time comes.
Key Takeaways:
- Burial insurance helps out your family by covering the costs for funerals and other stuff related to them.
- It’s important to understand burial insurance so you can plan for the future and take care of your family.
- To get burial insurance, you have to meet certain requirements and fill out some paperwork.
- Looking at different burial insurance plans can help you find the best one for you and your family.
- If you need to use your burial insurance, you’ll need to file a claim and go through a process to get the money.
What is Burial Insurance?
Planning ahead means thinking about what happens after we’re gone, including how to pay for funerals and other last expenses. That’s where burial insurance comes in.
Knowing what burial insurance does and how it’s not like other life insurance types can help you make wise decisions to look after your family.
Burial insurance is there to help out your family by covering the costs of funerals and other final expenses.
This financial help stops your loved ones from having extra money worries during a tough time.
What does burial insurance typically include?
Typically, burial life insurance coverage includes:
- Funeral expenses
- A casket or urn costs
- Transportation of remains
- Embalming and preparation of the body
- Memorial or funeral services
- Grave marker or headstone
- Other related expenses
When you have burial insurance, you can make sure that these important parts of your final plans are all sorted out.
It will relieve your family of the financial burden that may otherwise fall on them.
How Does Burial Insurance Differ From Other Types of Life Insurance Policies?
Burial insurance typically offers simpler and easier qualification processes than traditional life insurance.
Its design specifically provides coverage for funeral cost and final expense.
Other types of life insurance might cover more things or focus on replacing lost income for your loved ones.
Burial insurance usually covers less than regular life insurance. This makes it cheaper and easier to get for people who just need help with funeral costs and other final expenses.
Knowing how burial insurance and regular life insurance are different can help you choose the right one for you.
The Benefits of Burial Insurance
Having burial insurance helps keep you and your family safe financially, and it gives you peace of mind.
Let’s talk about why having burial insurance is a good idea and how it can really help when times get tough.
Financial Assistance for Funeral Expenses
One of the main perks of burial insurance is that it gives you money for paying for funerals and burials.
These costs can cover things like the funeral itself, the coffin, the burial spot, the headstone, cremation, and other related fees.
With this coverage, your family doesn’t have to stress about how to pay for these things during a tough and emotional time.
Easing the Burden on Loved Ones
Losing someone you love is tough, and thinking about money makes it even harder.
Burial insurance makes things easier because it means your family doesn’t have to rush to find money for your final plans.
Instead, they can spend their time remembering you and feeling sad without having to stress about money.
Affordable
The price can change, but this plan works well for folks with steady incomes. You can pick how much you want to pay and how much you’ll get.
Peace of Mind
Thinking ahead and knowing that your last expenses are taken care of can help you feel calm and relaxed.
Burial insurance allows you to have control over your end-of-life plans. Make sure your wishes happen without making your family worry about money. Your loved ones will also feel better knowing they don’t have to deal with unexpected costs alone.
Accessibility
Getting burial insurance is usually easier than getting regular life insurance.
They often have simplified underwriting processes and may not require a medical exam.
This makes it a good choice for people who might have trouble getting other kinds of life insurance.
Flexible Coverage Options
With burial insurance, you can pick the plan that fits what you need and how much money you have to spend.
Whether you want a smaller policy for essentials or a larger one for extra financial help, you have a choice.
How Burial Insurance Works
Below are typical rules that apply to most burial insurance policies:
- Burial insurance is available for individuals aged 50 and older.
- How much you pay for burial insurance can depend on how healthy you are right now, which company you go with, and the plan you pick.
- Cash benefits are paid directly to your chosen beneficiary.
- Premiums can be paid monthly or annually, whichever suits you best.
- Paying premiums on time keeps your burial insurance policy valid indefinitely.
- You pay the same amount every time, and you stay covered until you’re either 100 or 120 years old.
Applying for Burial Insurance
When you want to help your family with funeral costs, burial insurance can really help out.
It’s essential to know what you need and how to apply to make things easy.
Here’s a handy guide to help you through the process of getting burial insurance:
Eligibility Requirements
To get burial insurance, you usually have to follow some rules set by the insurance companies. Here are some common things they might ask for:
- Age: Most of the time, you can get burial insurance if you’re between 50 and 85 years old. But some companies might offer it to younger people too.
- Health: You probably won’t need a doctor’s checkup for burial insurance, but you might have to answer some questions about your health on the form.
- Where you live: You have to be a legal resident of the country where you’re applying for burial insurance.
Application Process
Getting burial insurance is pretty easy. Here’s what you usually do:
- Look around: Check out different burial insurance companies to find the best one for you. Compare what they offer, how much it costs, and what other people say about them.
- Get your papers ready: Before you fill out the form, make sure you have all the documents you need, like your birth certificate or proof of where you live.
- Fill out the form: Write down all the right info on the form and make sure you answer all the questions , especially about your health and how you live.
- Send it in: Once you’re done, check over the form to make sure everything’s correct. Then, send it off to the burial insurance company either online or by mail.
- Wait for a reply: The insurance company will look at your form and decide if you can get the insurance. This can take a few weeks. If they say yes, they’ll send you an offer.
- Look it over: Read through the offer carefully. Make sure you understand what the insurance covers, how much you’ll pay, and any other rules.
- Pay up: If you’re happy with everything, you’ll need to make your first payment to start your burial insurance.
Pros and Cons of Applying for Burial InsuranceAverage Funeral Costs
In 2021, the National Funeral Directors Association (NFDA) told us about the average prices for various kinds of funerals. On average, a funeral with cremation costs $6,971.
If you opt for a funeral with a viewing and burial, the cost jumps to $7,848. These figures don’t include additional fees like flowers, obituaries, or monument costs.
Cash advance fees, which cover third-party vendor expenses, can add up. Online calculators might not include all costs, like burial plots, caskets, or urns.
Since burial plot expenses vary , they’re not included here. Make sure to consider your preferences when estimating final expenses.
Funeral with Viewing and Burial:
- Metal Casket: $2,500
- Basic Services Fee: $2,300
- Vault: $1,572
- Embalming: $775
- Facilities/Staff for Ceremony: $515
- Facilities/Staff for Viewing: $450
- Hearse: $325
- Removal or Transfer of Remains: $350
- Misc. Preparation: $275
- Printing for Memorial: $183
- Service Vehicle(s): $150
Funeral with Cremation:
Cremations are preferred over burials by many.
Some families opt for viewing and memorial services before cremation. Others choose cremation first and use the urn to represent their loved ones during these gatherings.
- Basic Services Fee: $2,300
- Cremation Casket: $1,310
- Embalming: $775
- Facilities/Staff for Ceremony: $515
- Facilities/Staff for Viewing: $450
- Third-Party Cremation Fee: $368
- Removal or Transfer of Remains: $350
- Urn: $295
- Misc. Preparation: $275
- Printing for Memorial: $183
- Service Vehicle(s): $150
These costs can quickly add up and put loved ones in a tough spot when it’s time to cover burial expenses.
Families who can’t afford a funeral or burial may resort to taking out loans, relying on low-cost options, or borrowing money from friends.
The reality is that few people aside from yourself will save enough to cover burial expenses.
In fact, less than 4 in 10 individuals have sufficient savings to handle a $1,000 unexpected expense.
Getting burial insurance now means your family can get help from the insurance company later when they need it.
Tips for Preparing Your Burial Insurance
Here are some simple steps for getting your end-of-life finances in order:
- Choose beneficiaries carefully
Decide who you want to receive your assets and update your financial accounts accordingly.
Changes like the death of a spouse should be reported promptly to ensure your estate plans stay up to date.
- Get life insurance
Life insurance provides financial support to your loved ones after you pass away.
The people you choose to get the money can use it to pay for things like funerals or medical bills.
- Appoint trusted individuals
Select someone you trust to be the executor of your will. Also, consider appointing a power of attorney to make decisions on your behalf if needed.
- Make a will
Meet up with a lawyer who knows about wills. They’ll help you make a paper that says who should get your stuff and any other important things you want to say about it.
- Plan your funeral
Consider getting ready and putting some money aside for your funeral or burial early on to help out your family later.
Talk with your loved ones about what you want and put it in your will to help them know what to do.
Follow these tips, and you can make sure your burial insurance gives you and your family peace of mind.
Understanding the Claims Process
Filing a claim for burial insurance can feel overwhelming, especially during a time of loss and grief.
However, understanding the claims process can provide clarity and guidance when needed.
Below are the steps in filing a burial insurance claim, and the important aspects of claims settlement are explained.
Step 1: Notify the Insurance Company
Right after the person passes away, it’s important to tell the insurance company about it.
You can usually do this by calling their customer service or talking to your insurance agent.
Give them the important info like the policy number, when the person died, and anything else they ask for.
Step 2: Gather Required Documentation
Once you start the claim, the insurance company will ask for some papers to check everything.
You might have to get the death certificate, some papers proving you’re related to the person who died, and any other forms they ask for.
Make sure to get these papers quickly so things go smoothly with the claim.
Step 3: Submit the Claim
Once you have all the papers you need, it’s time to send them to the insurance company.
You can usually do this online using their website or by mailing the papers to the address they give you.
Just make sure to do it the way they ask so everything goes smoothly and there aren’t any delays.
Step 4: Claims Settlement
Once the insurance company gets your claim, they’ll check the papers and see how much they’ll cover.
They’ll decide how much money you get based on the rules in the policy.
If they agree, they’ll send the money to the person or people you chose to get it.
Final Thought
To wrap it up, funeral costs can be a big worry for families.
But burial insurance can help by giving them the money they need for the funeral.
Make sure your family doesn’t have to struggle with money when they’re already going through a tough time.
To find out more about handling final expenses and how burial insurance works, check out our articles.
If you’re ready to find out how much it might cost you, just get in touch with our licensed insurance agents.
Don’t wait until it’s too late – start looking into burial insurance options now to help out your family later on.
FAQs
Who should I choose as my beneficiary?
Remember that while you can guide them on fund usage, the final decision lies with them.
It’s crucial to choose someone trustworthy, as they’ll bear the responsibility of handling the benefit you leave.
Many opt for a partner or family member, especially someone with a financial stake in your life, known as having an “insurable interest.”
It ensures they depend on your income or may face a loss upon your passing.
Is There a Waiting Period?
Many burial insurance policies with level benefits offer full death benefits immediately, starting from the first day of coverage.
Once your application is approved and you’ve paid the initial premium, the insurance becomes effective. The paperwork indicates the start date of the policy.
However, if the policy has a graded benefit, partial benefits are available upon issuance, with full benefits becoming available after a specific waiting period.
What burial plan is the most affordable?
Direct cremation stands out as one of the most budget-friendly choices for laying your loved one to rest.
Additionally, it provides families with greater flexibility for creating personalized memorials, catering to those who seek a more distinctive approach.
