Deciding on a burial insurance plan is a major choice that impacts what you want to happen after you pass away and how it affects your family’s money. It’s important to pick the right one.
It’s wise to get advice from experts about this type of insurance. It’s the best choice!
When choosing a burial insurance plan, there’s a lot to consider. This includes figuring out how much coverage you need, how many premiums you’ll have to pay, who can get it, and any extra perks you might receive.
It can be overwhelming to figure it all out on your own. That’s where insurance professionals can help.
These experts know a lot about burial insurance. They’ll look at your situation, understand what you want, and suggest your best plan.
By talking to them, you’ll get good advice that can help you make an intelligent decision.
If you talk to insurance experts, they can help you understand all the ins and outs of the burial insurance plan, like any limits or things it doesn’t cover.
Knowing this helps you pick a plan that gives you good coverage and meets your needs.
Finally, talking to the right experts when choosing a burial insurance plan can save you time.
It makes things easier, ensures you get a plan that fits your final wishes, and helps your family financially.
Key Takeaways:
- Seek guidance from insurance experts when choosing a burial insurance plan.
- Consider coverage amount, premiums, eligibility, and additional benefits.
- Insurance experts have the knowledge and experience to recommend the most suitable plan.
- Consulting with experts helps you understand the terms and conditions of the plan.
- Selecting the right burial insurance plan provides financial security for your loved ones.
What is a Burial Insurance Plan?
Burial insurance is a special life insurance that pays for funeral and burial costs. It’s also called final expense or funeral insurance. This type of insurance helps make things easier for your family when you pass away, so they can focus on saying goodbye instead of worrying about money.
Unlike regular life insurance, burial insurance usually covers smaller amounts, like $5,000 or $10,000. You pay premiums regularly over time to keep the coverage.
One cool thing about burial insurance is that you usually don’t need a medical exam to get it. So, even if you’re not in perfect health, you can still get coverage. Some plans let you get coverage immediately, while others might make you wait a bit.
The coverage helps pay for various aspects of your funeral and burial, such as the service, cemetery plot, and casket.
With burial insurance, the coverage lasts forever and might even grow in value over time. You can use this value if you need it.
Sarah Thompson, who’s an insurance expert, says burial insurance is a good way to get ready for your final expenses and make things easier for your family. Understanding how these plans work helps you make an intelligent choice that fits your end-of-life plans.
Key Features of Burial Insurance
- Covers funeral and burial expenses
- Available for smaller amounts ($5,000 or $10,000)
- Consistent premiums throughout the policy term
- Acceptance doesn’t require a medical exam.
- Includes funeral services, cemetery plot, casket, etc.
- Provides permanent coverage and cash value buildup
Burial insurance plans are not the same as prepaid funeral plans, where you pay for your funeral expenses in advance to a funeral home.
Here’s how burial insurance works :
You pay premiums, and when you die, the money goes to the people you choose to help cover your funeral expenses.
It allows for greater flexibility, enabling your loved ones to use the funds as needed. It also avoids price increases that may occur over time.
Now that you know the basics of burial insurance plans, let’s consider the important things to consider when picking the right one.
Factors to Consider When Choosing a Burial Insurance Plan
When choosing a burial insurance plan, it’s crucial to consider a few key things. These factors affect what you get from the plan, how much it costs, and whether it’s right for you.
Coverage Amount
One of the key factors to consider is the coverage amount provided by the burial insurance plan.
It refers to the total benefit your beneficiaries will receive upon your passing. It is important to assess your funeral and burial expenses.
Thinking about how prices might go up over time and what expenses might come up later can make sure your family stays safe and taken care of.
Premiums
Another crucial factor to check is the premiums or the amount you pay for the burial insurance plan.
It is essential to find a plan with premiums that fit within your budget. Think about how much money you have now and if you expect it to change in the future, like getting more or less money.
Keep in mind that premiums can vary based on factors. Things like how old you are, how healthy you are, and how much coverage you need really matter. So, it’s a good idea to check out different options and see what prices they offer.
Eligibility
Before choosing a burial insurance plan, it’s important to understand the eligibility requirements. Some plans may have certain age restrictions or medical underwriting.
This might mean you have to share info about your health or even go for a check-up. Make sure the plan you pick fits the rules so you don’t run into problems later.
Additional Benefits
Many burial insurance plans offer more benefits besides the basic coverage that can enhance the policy’s value.
These additional benefits may include features such as accelerated death benefits. It will allow you to access a portion of the coverage amount if you are diagnosed with a terminal illness.
Other benefits may include funeral planning assistance or transportation services. Assess these additional benefits and determine which ones are important to you.
Some burial insurance plans offer assistance from the National Funeral Directors Association.
These experts can provide valuable assistance in planning and organizing funeral arrangements.
Comparison Table: Factors to Consider When Choosing a Burial Insurance Plan
This chart shows three different burial insurance plans and points out the important things to think about. It shows how much coverage you get, how much you have to pay, the ages when you can sign up, and any extra perks each plan gives you. Look at this chart to help you decide which plan is best based on what’s most important.
Seeking Guidance from Insurance Experts
When choosing a burial insurance plan, getting advice from insurance experts is essential. They can help you understand your options.
Insurance experts know all about the different burial insurance plans available. They can explain everything, like insurance coverage, premiums, and benefits.
One great thing about talking to insurance experts is they give personalized advice. They listen to your needs and help you find a plan that fits your budget and preferences.
Plus, insurance experts stay updated on the latest trends and rules in the industry. They’ll ensure you know about any changes affecting your plan.
In short, talking to insurance experts is key when picking a burial insurance plan. They’ll guide you to the right choice for you and your loved one.
Comparing Burial Insurance Plans
Comparing these plans helps you make an informed decision. This section will outline each plan’s key features, benefits, and limitations, helping you choose.
Mutual of Omaha
Mutual of Omaha offers life insurance for a wide range of ages, so you can get covered when you’re younger. It’s cheaper, and you can start with just $2,000 in coverage, which is good if you don’t need a lot.
They usually give you the money within a day. This can help your family when paying for funerals and other urgent expenses. Their website is user-friendly, offering tools to calculate and compare final expenses.
Mutual of Omaha has a good reputation for paying claims on time. Their universal life policy also allows you to get some money early if you have illnesses. This can be useful for paying medical bills.
Face Amounts: $2,000 – $40,000 ($20,000 Graded Max)
Types:
- Level
- Graded
Payouts:
- Level – Immediate
- Graded – 2-year policy (Return of Premium plus 10%); Full payout for accidental death.
Pros
- They offer whole life insurance without needing a medical exam. This makes it easier for people to apply.
- They got really good scores in a study by J.D. Power, which means their customers are usually happy.
- If you get approved, you’re covered right away for both natural and accidental death. You don’t have to wait, which can give you peace of mind.
- You can get coverage without a medical exam for amounts up to $50,000, which can fit lots of different needs.
- They usually approve applications quickly, often within a day.
Cons
- You can’t buy their policies online or directly from the company. You have to go through their agents.
- When you apply, you have to talk to one of their licensed agents and fill out forms with them.
- If you decide to get coverage by mail or on their website, you have to wait two years before it kicks in. Plus, they only cover up to $25,000.
Why We Chose It:
- Mutual of Omaha is great because they offer burial insurance to people as young as 45, which is younger than some other companies.
- They’re flexible with their policies, so you can start with a small amount like $2,000 (or $5,000 in New York). This is good if you only need a little coverage.
- If you need more protection, you can get up to $25,000 in coverage from Mutual of Omaha, no matter where you live.
- They’re good at fitting different money needs and what people want.
Ethos
Ethos is a great choice if you need insurance in a hurry. It’s simple to apply online, and you’ll get covered right away.
The guaranteed issue whole life insurance option is a crucial advantage. It offers instant approval for coverage amounts ranging from $10,000 to $25,000 for individuals aged 65 to 85.
This final expense policy does not require health questions or medical exams. Moreover, your monthly premiums remain consistent throughout the policy’s life.
Face Amounts: $1,000 up to $30,000
Types: Term and whole life insurance
Payouts: During the first two years, if the policyholder dies, a part of the death benefit will be paid out as a percentage of the premiums paid.
It commonly falls within 25% to 100% of the coverage amount.
Pros:
- Ethos offers burial insurance that covers a wide range of money, from $1,000 to $30,000. So, you can choose how much coverage you want.
- If you’re between 66 and 85 years old, Ethos has a policy just for you. The best part? You can get it without having to undergo any medical exams.
- If you like planning ahead, Ethos has a tool on its website that makes it easy to figure out how much you might have to pay. It’s simple to use and gives you a quick idea.
Cons:
- One thing to consider is that they don’t make their own policies. Instead, they team up with other insurance companies to offer coverage. This might make the process a bit less smooth sometimes.
- If you need more coverage or more flexibility, please speak with an insurance agent.
- Our insurance agent is here to help you out. They know a lot about this stuff and can help you figure out what’s best for you. They’ll walk you through your options and make sure you get the coverage that fits your needs.
Why We Chose It:
We picked Ethos Insurance because they make getting coverage simple and easy. Their application process is straightforward, and they communicate clearly.
Plus, Ethos gave us a budget-friendly option without sacrificing reliable coverage.
Their transparent pricing and helpful customer service assured us we chose the right insurance.
State Farm
State Farm Life Insurance earns a 5 out of 5 stars for its performance. Factors like customer experience, complaints, and financial strength.
State Farm offers various insurance products, including final expense whole life insurance.
People like this insurance company because it is strong and does a great job of keeping its customers happy. State Farm also got the top spot in the 2022 J.D. Power Life Insurance Study, which means its customers are super satisfied.
Additionally, it holds the highest A++ AM Best rating, ensuring reliable claims payouts.
Face Amounts: $10,000 to $15,000
Types:
- Level
- Graded
Payouts:
- Level – Immediate
- Graded – 2-year waiting period (full death benefit is unpaid).
If the person who has the insurance passes away during this waiting time, the person who gets the money gets only part of it. They might get back the money that was paid for the insurance, plus some extra money called interest.
- Total payout for accidental death.
Pros
- State Farm is a long-standing insurance company well known for its reliability.
- You can trust them to fulfill commitments. You can ensure insured individuals receive proper care and peace of mind.
- Their customer service is good, and they’re always ready to help if you have any questions or worries.
Cons
- State Farm is a reputable insurance company but be aware of some important factors.
- Understanding available burial insurance plans can be challenging.
- It is crucial to confirm the availability of their services in your area, as it may vary based on your location.
- If you manage your policy online using an Android phone, there may be some limitations to what you can do. Keep this in mind.
Why We Chose It:
A lot of folks like State Farm because it’s got a good reputation, it’s strong, and its customer service is helpful.
But I suggest checking out a few different options before you decide. That way, you can find the one that best suits you.
By comparing these funeral insurance plans, you can see what each one provides and what’s not so great about them. Think about how much money you have, what you like, and how much coverage you want. That way, you can make a smart choice that keeps you and your family safe and feeling good.
Securing Your Final Wishes with Ease
Choosing the right burial insurance plan ensures your final wishes are respected. It also eases your loved ones’ financial burdens during a tough time.
It provides funds for a respectful goodbye and assures you that it will respect your preferences, bringing peace of mind.
With burial insurance, you can relieve the financial stress of end-of-life expenses. This financial support gives your family the needed assistance during their grieving period.
Moreover, selecting a burial insurance plan means you have control over your final arrangements.
You can specify the service type, ceremony, location, and burial plot, creating a farewell that reflects your personality and values.
One of the main benefits of a burial insurance plan is its flexibility.
Unlike traditional life insurance, these plans specifically cover funeral and burial expenses. It ensures no delays or financial constraints when honoring your wishes.
By handling the financial worries, your loved ones can focus on grieving and healing, knowing everything is taken care of.
It’s a challenging process, but a burial insurance plan can ease the emotional and financial burden on your family, letting them focus on healing.
Securing your final wishes through a burial insurance plan is a thoughtful and responsible decision.
Final Thought
Picking the right burial insurance plan is super important because it helps make sure your family has the money they need when things get tough.
If you want to learn more about your options for covering final expenses, contact our licensed insurance agents. They’re ready to help you find the perfect burial insurance plan.
FAQ
Who should I talk to when choosing a burial insurance plan?
It is important to seek guidance from insurance experts when selecting a burial insurance plan.
Our licensed insurance agents know a lot and can help you pick the right burial insurance plan based on your wishes and money.
What are burial insurance plans?
Burial insurance plans specifically cover the expenses linked to funeral and burial costs.
Burial insurance differs from other types because it’s designed specifically for people preparing for their final arrangements.
What is the best company to get burial insurance?
Best burial insurance (interlink post “7 Best Burial Insurance Companies of February 2024”)
- Best for younger people: Mutual of Omaha.
- Best for immediate coverage: Ethos Life Insurance.
- Best for customer satisfaction: State Farm.
How much burial insurance should I get?
Some companies offer their plans to people over 85, while others have a maximum age limit.
Regardless of age, many people opt for around $10,000 of coverage to help with funeral expenses.
Is burial insurance worth buying?
Buying burial insurance (or a small life insurance policy for final expenses) can prevent leaving significant debt for the family.
Also, a larger whole or term life insurance policy can financially support aging parents or siblings.
