Given how expensive the average funeral cost is some families who have no other planning in place will try to offset the cost by choosing cremation. But the family is still going to face serious financial strain if there is no life insurance to cover burial expenses.
If a family truly cannot afford a funeral because no life insurance was set up, not even burial insurance, the family will tend to pay for everything out of pocket which causes serious conflict among family members who don’t necessarily have equal financial resources.
At this point, you may be asking:
Well, let’s explore the answers.
What is Burial Insurance?
Having someone in place does not have to break the bank. Burial insurance can be a simple answer.
For those who don’t need substantial coverage or, again don’t necessarily qualify for other types of coverage, burial insurance can provide your beneficiaries with just enough money to pay for all burial and funeral expenses without having to dip into their own savings account or retirement funds, assuming they have them.
Burial insurance policies are usually either guaranteed issue life insurance which, as the name suggests, are guaranteed to approve your policy.
These, by comparison, do not cost substantially more in premiums depending on the company but they do not require a medical exam, you do not have to answer any health questions, the application is typically one or two pages at most, and you won’t have to undergo a thorough interview with an underwriter.
What is the Difference Between Life and Burial Insurance?
Burial insurance is a form of life insurance, but it is one designed only to cover the expenses of your burial. By comparison, a permanent life insurance policy is meant to supply enough money to cover things like estate taxes for wealthier
Estates, pay off any existing debt like a mortgage, perhaps even provide the money necessary to replace lost income for your spouse for the rest of their life. Term policies, on a similar note, are meant to replace income but for a shorter amount of time.
A 10 or 20 year Term Policy is designed to provide replacement income for 10 or 20 years which normally is done to cover the anticipated cost during that set of time. Someone who still has 10 years left on their mortgage would be a good example of this, as would somebody with three kids still living at home who would turn 18 and move on to college at the end of a life insurance policy.
How Much Does a Burial Insurance Policy Cost?
The cost of a burial policy is contingent upon your age and the amount of coverage you want. With a guaranteed burial policy, you cannot be denied coverage regardless of pre-existing medical conditions, smoking habits, or anything else.
The older you get the more you will pay in premiums for a $10,000 burial insurance policy, however, compared to term or permanent policies you will be paying substantially less. In some cases, you might not qualify for any term or permanent coverage let alone affordable coverage in which case burial insurance is your only viable option.
Do I Need Burial Insurance?
Burial insurance of just $10,000 can cover a nimiety of expenses and be just enough to get everything your family needs.
Many people do not recognize how expensive a funeral is until they must plan one. But the unfortunate truth is that most people are never exposed to these costs until it is too late. Burial insurance is a form of life insurance that provides you with the money you need to cover your final burial expenses.
Average Funeral Cost in America – Why You May Need Burial Insurance
The average cost for final expenses and burials in America ranges between $8,000 and $10,000. This covers things such as:
It is easy to see how with all of these costs the final expenses will add up and it will behoove you and your beneficiaries to invest in burial life insurance.
$10,000 Burial Insurance Rates
Below are burial insurance rates for $10,000 face amount policies. Note that the max age you can purchase a policy at is 85.
|Age||Male annual||Male monthly||Female annual||Female monthly|
These rates may vary based on a per company basis. Let’s now take a look at some of the best burial insurance companies for $10,000 policies.
Best Companies for $10,000 Burial Insurance Policies
|Company Name||Issue Ages||Death Benefit Type||Coverage Amount|
|Americo||50-85||Level and Graded||$2,000-$30,000|
|American National||50-85||Level, Modified, and Graded||$2,000-$50,000|
|American Continental||65-89||Level, Modified, and Graded||$3,000-$35,000|
|Assurity||40-80||Level, Modified, and Graded||$5,000-$50,000|
|Mutual of Omaha||45-85||Level, Modified, and Graded||$2,000-$40,000|
|Transamerica||Up to 85||Level||$1,000-$50,000|
|United Home Life||Up to 80||Level, Graded, and Guaranteed Approval||$5,000-$100,000|
Finding the best burial insurance plan when you only need $10,000 in coverage requires a bit of homework. The difference in price that you will be quoted from one company to the next could be as high as 70%.
The reason for this is that companies differentiate between various health problems to various degrees.
One company might quote you a level, graded or guaranteed acceptance burial insurance policy in a standard underwriting class because of a pre-existing condition, diabetes, or smoking habits whereas another company might give you a quote for that exact same policy in a preferred underwriting class.
Each company is going to differ with regard to how severely your policy premiums are impacted by various health concerns.
$10,000 Burial Insurance – Wrapping it Up
The best way to make sure your family doesn’t have to undergo any stress on top of handling the death of a loved one is to plan ahead.
Buying some form of life insurance policy and putting final wishes on paper will help relieve family members who know that they do not have to worry about the financial aspect of a family death and can focus instead on their grief.
Believe it or not, $10,000 in burial insurance is the average cost for funeral services and burials across all 50 states and should be adequate for most situations.
If you are young, in good health, and do not need immediate life insurance coverage, burial insurance is not the best life insurance product for you.
However, if you are 60 or older, and do not have any financial dependents or outstanding debt, burial insurance may be the best life insurance policy for you because of its
Getting the Best $10,000 Burial Insurance Rates
It is important to work with a third-party broker and do some research yourself to compare which companies are more favorable to the conditions or lifestyle habits that you have.
Somebody who enjoys outdoor rock-climbing might have a difficult time getting an inexpensive premium from Mutual of Omaha because of the risk that habit poses whereas Transamerica could be rather favorable to it as long as the rest of your health is in good standing.
Keep in mind that your health will have a direct impact on your premiums as will your age. If you are in excellent health, above-average, it might not be in your best interest to go with a $10,000 burial insurance policy, because you can get more affordable coverage with a higher face amount.
Give us a call today to speak with an independent life insurance agent about your situation to find the best burial insurance coverage for you and your family.