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Key Things You Should Do When Selecting a Burial Insurance Policy

People purchase life insurance for any number of different reasons. These may include the payoff of large debt – including a home mortgage – as well as the ongoing payment of living expenses if a primary income earner should happen to pass away suddenly.

But regardless of how young or old you are, as well as the amount of debt or other financial obligations that you may have, there is one thing that most of us will face when a loved one passes away – and that is final expenses.

Today, the average cost of a funeral and other related costs can run in the range of approximately $10,000. This is especially the case when you factor in not just the memorial service itself, but also the burial plot and headstone, as well as the transportaKey things to do when buying Burial Insurancetion, flowers, and other ancillary expenses.

Therefore, if you don’t want to leave your loved ones with this type of financial burden – at an already difficult time in their lives – the purchase of a burial insurance policy can help them to quickly and easily eliminate these costs.

What Is Burial Life Insurance And How Does It Work?

Burial insurance is a type of life insurance that is typically used for paying off the cost of one’s funeral and other final expenses. This coverage is also often referred to as funeral insurance or final expense coverage.

This coverage is purchased by those who are between the age of 50 and 80 – although there are some insurance carriers that will offer burial insurance policies to applicants who are older.

Unlike many other life insurance policies, a burial insurance policy will usually have a face amount that is lower and in the range of $5,000 to $50,000. However, it may be possible to obtain coverage of a higher dollar amount in certain instances.

By having a burial insurance policy, you can provide your loved ones with a quick and easy way to pay off the high cost of final expenses so that they do not have to dip into savings – or worse, put these costs on credit.

A burial insurance policy will typically work like most other life insurance coverage in that the policyholder pays a premium in return for the coverage. However, the way in which the death benefits are paid out to the beneficiary may differ, depending on the type of burial insurance policy that you buy. So, it is important that you choose carefully.

For example, some of these policies have benefits that may only pay out a certain percentage of the death benefit if the insured passes away within the first few years of policy ownership. If, however, the insured has been covered under the policy for more than two or three years, and then they pass away, the entire stated benefit will then be paid out to the beneficiary.

In other instances, however, a policy may pay out 100% of the stated death benefit regardless of when death occurs. For this reason, it is essential to understand exactly what it is that you are purchasing. Working with an independent insurance brokerage that can walk you through the purchase process can help.

Should You Consider Purchasing A Burial Insurance Policy?

While some people may feel that having life insurance is only for those who are young and have families to protect, this is not necessarily the case. The cost of final expenses can be substantial – and they can often cause families to dip into retirement funds in order to pay them, or even to sell cherished assets at well below market value to come up with the cash.

In order instances, it may be necessary to put the expenses on credit – which in turn requires many years of payments going forward. But, by having a burial insurance policy in place, there will be funds quickly available to pay off these expenses.

In many cases, burial insurance is not difficult to qualify for – and often, there is no medical exam necessary in order to be approved for the coverage, such as with a guaranteed issue life insurance policy. And, because the face amount of the coverage is often low, the premium that is required to purchase a burial insurance policy is also usually quite low.

What Types Of Burial Insurance Are Available In The Market?

Burial insurance can be purchased as either a term or a permanent policy. With term coverage, you can obtain pure death benefit protection only, without any other “bells and whistles”. Because of that, the premium will usually be kept to a minimum. Term insurance is purchased for a specific period – or term – such as 10 years, 15 years, 20 years, 25 years, or even for 30 years.

Permanent life insurance will include both a death benefit and cash value. Because of that, the premium may be higher than that of a comparable term insurance policy. However, in addition to the death benefit protection, you will also have a savings component that is built into the policy.

The cash that is inside of the burial insurance policy is allowed to grow on a tax-deferred basis. This means that no tax will be due on the growth of these funds. The money that is in the cash value component may be either borrowed or withdrawn by the policyholder for any reason, including for paying off debt, supplementing retirement income, or even for taking a nice vacation.

How To Select The Best Burial Insurance Policy For Your Needs?

When choosing a burial insurance policy, it will be important that you purchase a policy that best meets your specific needs. With that in mind, some of the key things you should do when selecting a burial insurance policy include:

  • Determine how much insurance protection you need. When determining the amount of burial insurance coverage that you need, it is a good idea to find out the approximate cost of funerals in your area, as well as the related expenses. In addition, many people will also add in some additional insurance coverage for potential uninsured medical and / or hospice costs that they may incur.
  • Decide on the type of coverage that will suit you the best. You should also consider the type of policy that will suit you the best. This means determining whether you should obtain a term or a permanent policy. With a term policy, you will have death benefit protection only, with no cash value. Because of this, the premium will be lower. However, the policy will expire after a certain amount of time has elapsed. A permanent life insurance policy may cost a bit more. However, provided that the premium continues to be paid, it will remain in force throughout the remainder of your lifetime – regardless of your advancing age, and even if you contract an adverse health issue in the future.
  • Compare premium quotes. It is also wise to compare premium quotes from several different burial insurance companies. This is because not all insurance carriers price their policies in an identical manner – even for the very same amount of coverage. Therefore, checking with at least two or three carriers can give you an idea of the difference in premium prices. Working with an independent insurance brokerage is typically the easiest and most convenient way to go about doing this, as you can quickly obtain quotes from numerous insurance carriers all in one place.
  • Review insurance carriers. It will also be important to review the actual insurance carrier that you are considering purchasing your burial insurance policy through. This is because you will want to ensure that the company is highly rated, that it is strong and stable financially, and that it has a good reputation for paying out its policyholder claims.

Where To Find The Best Premium Quotes On Burial Insurance Coverage

When seeking the best premium quotes on burial insurance coverage, working with an agency or a company that has access to multiple life insurance companies is typically the best way to go. This is because you will be able to obtain several quotes all in one place, without the need to go from one insurer to another.

If you are ready to compare quotes on burial insurance coverage, we can help. We work with many of the top life insurance carriers in the marketplace today, and we can assist you with obtaining all of the important details that you need. When you are ready to proceed, just simply fill out the form on this page.

Should you still have any questions about how to select a burial insurance policy, please feel free to contact us directly. We can be reached toll-free by dialing 888-389-8676. We understand that the purchase of burial insurance may seem a bit overwhelming – but doing so can provide those you love with the peace of mind that they deserve. So, contact us today – we’re here to help.

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