We all get to a point in our life where we have to think about final expenses. It’s tough, isn’t it?
If you’ve been through the death of a loved you, you understand the pain. Especially if you were the administrator of all the final arrangements.
Were you shocked at the funeral costs?
It wasn’t just the cost of the funeral plot either. It was the headstone, the flowers, transportation, the printing of bulletins. It was all the unexpected medical expenses you incur at the end of life as well.
How Much Does A Funeral Cost?
The average funeral costs in the United States is approximately $7,000. Once you add another $12,000 of medical expenses associated with dying, you are pushing $20K in end of life costs.
There are a lot of Americans who don’t have $20K+ available for their family to use for burial expenses. Families will often go into debt by charging large sums of money with credit cards to fund their loved ones funeral expenses.
You don’t want your memory tainted by burdening your family under a mountain of debt, do you?
There is a simple solution to this problem….Burial Insurance.
What Is Burial Insurance?
Burial insurance is a unique life policy that covers final expenses. You may have heard it called by other names such as funeral insurance or final expense insurance. The product is designed to cover all the end of life expenses associated with a funeral.
Unlike most life policies that force you into more coverage than you might need as you age, burial insurance is a smaller policy with coverages from $5,000 to $25,000. Some companies even offer up to $50,000.
At that coverage level, you can see that even by overestimating funeral expense, you family is able to cover the cost. They may even have some cash left to be distributed among loved ones as a parting gift.
Burial Insurance is permanent life insurance, unlike term life policies that expire. Burial Insurance will stay in force until the end of your life. Also like a permanent life policy, some burial policies accrue cash value. The cash value benefit allows the policyholder to borrow or withdraw a portion of the cash.
What Is Covered Under Burial Insurance?
The beneficiary of the burial policy can use all the benefit to pay for all funeral expenses including medical expense incurred at the end of life.
How Is Burial Insurance Different From Life Insurance?
Life Insurance can function as burial coverage. However, there are several drawbacks:
As we explore the details of burial insurance, you’ll see the options available to you to safeguard the direction of the insurance funds.
How Does Burial Insurance Work?
Coverage available for burial policies range from $5,000 – $50,000. If you determine that you need more than the 50k, most agents can write a guaranteed issue life policy supplementing the burial plan.
Among burial policies there are three benefit levels available:
Burial Insurance plans also have unique beneficiary options. Rather than making a dependent or family member beneficiary, you are able to assign a funeral director or funeral home as the beneficiary. The benefit of this strategy is that you will be confident that the money will be used for the purpose you bought the policy.
Timing of disbursements of funds is much quicker than a life policy. When the funeral director is the beneficiary, there is no worry of waiting for a life policy coverage to be decided.
Can You Have Both A Life Policy And A Burial Insurance Policy?
Yes. There is no conflict of coverage, and you can direct the burial policy for final expenses, and a life policy to settle debts or taxes. Be careful though. If the life policy is a term policy, it may expire before you need it.
Also, you should consider whether you are over-insured by having both policies. You may be paying for more than you need, and some of that monthly premium could be going toward your monthly expenses.
Reasons To Consider A Burial Life Insurance Policy
Here are a handful of reasons you should consider a burial policy:
What Is The Cost Of Burial Insurance?
Burial Insurance is very affordable, especially compared to other life coverages available to those over 50. If you’ve had medical issues, it may be the most affordable way to protect your family from financial issues.
The table below outlines some typical rates you can expect to see for burial insurance policies:
|50 yr old Female||$10,000||$25/mo.|
|65 yr old Female||$10,000||$41/mo.|
|80 yr old Female||$10,000||$100/mo.|
|50 yr old Male||$10,000||$30/mo.|
|65 yr old Male||$10,000||$55/mo.|
|80 yr old Male||$10,000||$130/mo.|
As you can see, burial insurance is an affordable decision. Our agents are experts in the various policy options available. We represent a wide variety of companies which allows us to design a product around your needs.
Contact one of our agents today to discuss the wide of options we have for you and your loved ones. We are committed to protecting your memory and financial lives of your family.
Purchasing Burial Insurance
When it comes to finding the best burial insurance policy for you, there are many tools available that can help find the best rates quickly and easily.
While the internet allows us to get a broad overview of what some typical pricing for burial insurance policies, it is important when applying for any life insurance policy to speak with an insurance agent.
Insurance agents are almost always free to consult with, and they can provide valuable industry knowledge in order to help you find the absolute best burial insurance rates for you. In order to maximize the value of your policy, it is always recommended that you speak with an insurance agent.