Life is unpredictable, and one day we won’t be here. Burial insurance helps ease the financial burden on loved ones when that time comes. Let’s explore its uses and why it’s important.
What is Burial Insurance?
Burial insurance essentially functions as whole life insurance, but its purpose is to cover final expenses.
The money it pays out, called the death benefit, usually ranges from $1,000 to $50,000.
That means it pays for things like funeral and burial costs and other expenses at the end of life.
Don’t let anyone confuse you. Burial insurance is the same thing as:
- Final expense insurance
- Funeral insurance
The coverage provided by burial insurance can include:
- Funeral service expenses
- Casket and burial plot costs
- Memorial or headstone costs
- Transportation and preparation of the body
- Final medical bills
- Outstanding debts
“Burial insurance coverage gives you peace of mind and financial protection. It ensures your final expenses are covered, so your loved ones don’t have to worry about it when you’re gone.”
What Is Burial Insurance Used For?
You can spend a burial insurance payout on anything you need. It’s not just for burial and funeral costs.
Even though it’s called “burial” insurance, you can use the money however you want.
Most people use the money for funeral expenses and other final costs, but your beneficiary can use it for anything they need.
It might mean paying medical bills, clearing any debts you have, or taking time off work to cope with your loss.
Burial Insurance Policies Build Cash Value
Yes, some burial insurance policies grow in value as time goes on.
Here’s how it works: while you’re paying your monthly or yearly premiums for coverage, part of that money goes into a savings account by your life insurance company.
You can take out a loan or withdraw from this account whenever you need.
How Burial Insurance Works
Knowing how burial insurance works (interlink post “How Burial Insurance Works: A Comprehensive Overview”) is important for planning your financial future wisely.
You need to understand how to get a policy, figure out how much to pay, pick the right coverage, and know about the death benefit.
When you get burial insurance, you’ll work with a special insurance company (interlink post “14 Best Burial & Final Expense Insurance Companies”).
They’ll look at your age, health, and how much coverage you want to decide how much you’ll pay regularly.
Choosing the right coverage (interlink post “How to Choose the Best Burial Insurance Plan for Your Loved Ones”) is key. You should think about how much your final expenses might be, like funeral costs (interlink post “How Much Does Burial & Final Insurance Cost?”), to make sure your policy covers everything your family needs.
You can protect your family financially by thinking ahead about your final expenses.
One big thing to know about burial insurance is the death benefit. It is the money your family gets when you pass away.
It helps cover your funeral and other costs, offering your family support when needed.
Getting burial insurance helps shield your loved ones from your final expenses. When you understand how it works and plan, you can make choices that give you peace of mind and keep your family financially secure.
Burial Insurance Policy Example
Why Purchase of Burial Insurance
Here’s why burial insurance is important:
Funeral Costs
Funerals can cost a lot, from a few thousand to tens of thousands of dollars.
In 2019, the National Funeral Directors Association said the average cost of a funeral with viewing and burial was $7,640.
Cremation Costs
More people are choosing cremation for their final plans.
In 2020, the Cremation Association of North America said 56% of people in the US chose cremation, up from 48% in 2015.
Even though cremation is usually cheaper than burial, there are still costs like cremation fees, urns, and memorial services.
Burial insurance can help with these costs and make it easier for loved ones.
With burial insurance, people can ensure their final plans are covered, so their family doesn’t have to worry about money.
The main reason people buy funeral insurance is for financial security. But there’s often a deeper reason, too.
Personal, family, or religious reasons lead some people to avoid cremation.
Cremation is still new for many Americans. They prefer the traditional burial option, where they can be laid to rest next to family, and loved ones have a place to visit and grieve.
Final Thought
In short, burial insurance gives you and your loved ones peace of mind by covering final expenses and securing your finances.
Funeral and end-of-life expenses can add up, but burial insurance helps manage these costs.
Ready to learn more and get a quote? Contact us today (interlink contact form)!
