Did you know that in the U.S., the average funeral cost is about $9,000? That’s a lot of money, especially when families are already going through a tough time after losing someone they love.
To help ease this financial burden, burial insurance is a good idea. Burial insurance pays for funeral expenses when you pass away.
It gives your family money to cover things like the funeral service, burial, and other costs that come with it. This way, they don’t have to worry about how they’ll afford everything during such a difficult time.
In this guide, we’ll explain how to get burial insurance and discuss the different types you can choose from. We’ll also share tips to help you pick the right one for you and your family.
Understanding Burial Insurance Policies
When you’re considering your money, burial insurance is something to consider. It’s there to give your family money when you pass away, so they don’t have to worry about paying for your funeral.
Let’s discuss the differences between burial, term, and funeral insurance.
“Burial insurance covers funeral and burial expenses when someone passes away.“
The Death Benefit: Protection for Your Loved Ones
Burial insurance is centered around the death benefit.
When you pass away, a guaranteed amount of money goes to your loved ones.
It’s like having a financial safety net to cover your end-of-life expenses, including funeral and burial costs. Unlike term or funeral insurance, burial insurance gives your loved ones freedom. They can use the money however they need to.
Covering Burial Expenses: Peace of Mind for Your Final Rest
One of the primary purposes of burial insurance is to cover the expenses of your funeral and burial.
These costs can add up fast, so it’s really important to have a life insurance policy. It helps ease the money worries for your loved ones.
Common expenses covered by burial insurance may include:
- Funeral service fees
- Casket or urn
- Embalming and preparation
- Transportation
- Grave plot
- Headstone or marker
- Memorial service
- Administrative fees
It typically provides a small death benefit of $5,000 to $25,000 to cover funeral costs and other final expenses.
Choosing the Right Burial Insurance Policy
It is important to select the right burial insurance to cover all end-of-life expenses.
Here are some steps to help you make an informed decision:
- Assess Your Needs
Begin by evaluating your specific requirements. Consider factors such as your age, health condition, and financial situation.
Figure out how much money you need to cover everything for your funeral, any debts you owe, and other stuff that comes up towards the end of your life.
- Understand Policy Types
- Traditional Burial Insurance provides a fixed death benefit to cover funeral expenses. It is typically available for individuals aged 50 and older.
- Pre-Need Funeral Insurance: These policies are often purchased directly from funeral homes. They allow you to prepay for funeral services and lock in today’s prices.
- Guaranteed Issue Life Insurance: If you have health issues, this insurance type can be beneficial. You don’t need to take a medical exam to get accepted, but there might be a wait before you get full coverage.
- Simplified Issue Life Insurance: ith this one, you have to answer a few health questions. No full-on medical check-up is needed! And it gets you coverage faster than guaranteed issue policies.
- Compare Premiums and Benefits
Look at the premiums (monthly or annual payments) for different policies. Consider whether you can comfortably afford them.
Compare the benefits (death benefit amount) offered by various policies. Ensure it aligns with your needs.
- Check Exclusions and Limitations
Understand what the life insurance policy covers and what it excludes.
For example, some policies may not cover deaths due to suicide within the first two years.
Watch out for graded death benefit clauses, they only give you partial coverage in the first few years.
- Read Customer Reviews and Ratings
Research the insurance company’s reputation. Look for customer reviews and ratings online.
Choose a company with a solid financial standing and a history of reliable service.
- Work with an Agent
Consult an experienced insurance agent specializing in burial insurance.
They can guide you through the process, explain policy details, and help you find the right fit.
Keep in mind, burial insurance is meant to help out your family with money when things get tough after you’re gone.
Take your time, compare options, and choose to ensure peace of mind for yourself and your family.
