Is Burial Insurance Something to Consider?

Many of us don’t like to talk about death and dying, but death is guaranteed to happen to everyone eventually, regardless of whether we talk about it. We insure so many things in our lives: our homes, car, life, health, and expensive items, but how many people truly consider burial insurance?

What is Burial Insurance?

Burial insurance refers to a type of insurance that helps your family pay for a funeral, cremation, burial, memorial service, casket, urn, cemetery plot, and other final expenses. It is a type of life insurance policy specifically meant to help the buyer’s family pay funeral expenses and is therefore also known as funeral insurance or final expense insurance.

Burial insurance has cash value and never expires as long as the premiums are paid. Additionally, rates are locked in so that the premiums stay the same throughout the life of the policy. Policies are available with only a quick interview and don’t require a medical exam. People up to age 85 can qualify for this insurance to protect their family from the extra burden of incurring huge costs at their death. Planning a funeral and purchasing a casket can cost thousands of dollars without even adding in the additional expenses of cemetery plots and markers. This places a heavy burden on the surviving family.

Is Burial Insurance Worth It?

Chances are that you’ve already taken steps to ensure your family’s financial security, such as saving for retirement and maintaining a life insurance policy. These are great steps that will help take care of your loved one after you’re gone. But what about the thousands of dollars required for your final expenses? When most people think of arrangements they can make prior to their death, they only think of a traditional Last Will & Testament. However, burial insurance is the only way to guarantee your family will have the funds they need to cover your final expenses, giving your family one less hassle to worry about during an already difficult time. Let’s take a look at burial insurance, how it differs from a prepaid funeral plan and pre-need insurance, and what it can do for you and your loved ones.

Benefits of Burial Insurance?

There are various benefits of having burial insurance, including:

• It is a whole-life insurance policy, meaning that the funds are available to you throughout your lifetime, assuming you maintain your premium payments. Once you take out a policy, you will be covered upon your death. Those you leave behind will not need to scramble to lay you to rest and can focus on the closure they need for their grief. In other words, burial insurance offers peace of mind for both you and loved ones.
• It is an affordable option that you can pay over time. Coverage amounts generally run between $5,000.00 and $50,000.00, but because they are whole-life policies they are likely to fit your means more easily than your family having to pay it all at once.
• Premiums for final expense insurance policies are largely based on age and health. While it is uncommon to need a medical exam for the policy, you will typically be asked general medical questions to gather a picture of your overall health. Options that don’t consider your health are generally not the best value but can be the best option if you are facing serious medical concerns.

In conclusion, having a burial insurance is a good practice to take the burden away from your loved ones and ensure you get the arrangements you want.