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How Much Burial Insurance Do I Need?
When purchasing burial insurance, one of the most important factors is coming up with the amount of actual coverage that you will need so that your loved ones and survivors will have enough to pay all the expenses.
While funeral insurance is like most other types of life insurance in that it pays out a death benefit in return for the payment of a premium, this type of coverage is purchased for the purpose of paying for one’s final expenses and other related costs. This is why the death benefit proceeds on a burial policy are not extraordinarily high – and the policies are fairly simple in terms of their underwriting process.
In most cases, insurance carriers that offer funeral insurance provide policies that start as low as $1,000 and typically go to $25,000 on the high end. These plans can be purchased in increments of $1,000, depending on your specific needs.
How To Determine The Amount Of Funeral Insurance That You Need
In coming up with an appropriate amount of funeral insurance coverage, there are several steps that you can take for determining an appropriate figure. These should be calculated as follows:
Step 1 – Determining Funeral And Other Final Expenses
The first step is to determine the cost of a funeral and other final expenses in your area (or the area in which you plan for your final resting place). Today, the average cost of a funeral can run in the range of roughly $10,000. This can include the price of the actual memorial service itself, as well as other ancillary costs such as an individual’s burial plot, headstone, casket, flowers, transportation, and other related items.
There could also be other expenses, such as final medical costs that are not covered under your health insurance policy or Medicare. By adding money into a funeral insurance policy for these anticipated costs, your survivors will not be left with unpaid medical bills once you are gone.
It’s vital that you calculate all of the final expenses and debts that are going to be left to your family. Burial insurance plans are designed for people that don’t have a massive mortgage payment or any other large debts. These plans are created for people that are debt free, but still want to offset the responsibility of having to pay for a funeral after you pass away.
Step 2 – Legal And Inheritance Expenses
The next step to consider is any legal and inheritance related expenses that you may incur. For instance, depending on your situation, there could be legal expenses such as those that are related to probate and / or the cost of settling your estate. Likewise, there could also be legal counsel required in order to help in overseeing the dividing of assets or other important matters.
You may also wish to leave a certain amount of inheritance to a family member and / or other loved one. This is especially the case if other items such as a home, business, or various tangible items are going to other members of your family or extended family, and you need a way to help in “evening out” the amount of the inheritance.
The funds that a beneficiary receives from a funeral insurance policy are typically received free from income taxation, just like other types of life insurance proceeds. Likewise, these funds may be used for any purpose that the recipient sees fit, such as paying off bills, replacing income, funding a higher education expense, or even taking a vacation. Depending on the amount that is received, the recipient may even consider depositing the funds into a vehicle such as an annuity and converting the money into a lifetime income.
Step 3 – Other Potential Needs
Depending on your situation – as well as whether or not you have other life insurance coverage – you may have other uncovered life insurance needs. If so, you may need to add these amounts to the total that you will need for your funeral insurance policy. Once you have done so, you will be ready to shop and compare for the funeral insurance policy that is best for you.
Who Should Get A Burial Insurance Plan?
While everyone should ensure that they get the protection that they need, these burial insurance plans aren’t perfect for everyone. There are several different groups of people that they are designed for.
As we mentioned earlier, one applicant that should consider these plans is someone that doesn’t have a huge amount of debts, but want to give their family money to help pay for any burial expenses or funeral costs. Because funerals can be so expensive, it can be difficult for a grieving family to cover.
Another group of people that should take advantage of one of these plans is someone that has poor health or several preexisting conditions. If you’ve been declined for life insurance coverage, then these plans can be the perfect option for you to get coverage for your family. Burial insurance plans don’t require any medical exam, which means that you can get the coverage you need, regardless of health.
Another group of people that can take advantage of these plans is someone that is looking to save money on their insurance coverage. Because these plans are so much smaller, the premiums are going to be much smaller than with a traditional life insurance plan.
How To Find The Best Funeral Insurance Policy
In seeking the best insurance policy for you and your specific needs, it is often best to work with a company or an agency that has access to more than just one single life insurance carrier. This is so that you can more directly compare the insurance policies, benefits, and the final expense insurance quotes of multiple carriers – and then make the determination as to which one will work the best for you and your specific needs.
When you are ready to move forward with the purchase of a funeral insurance policy, we can help. We work with many of the top funeral insurance policy carriers in the marketplace today, and we can assist you in obtaining all of the important information that you require in making an informed purchasing decision. Our experts can also work with you in coming up with an appropriate amount of coverage for your anticipated needs.
Every insurance company is different, which means that you could receive drastically varying rates from separate companies for the same amount of coverage. It’s important that you get quotes from dozens of companies before you decide which plan is going to work best for you and your family. Comparing rates is one of the best ways to ensure that you’re getting the best rate for your insurance plan.
We can help you in making your policy comparisons quickly and conveniently – all from your home computer – and without the need to meet in person with an insurance agent. When you’re ready to proceed, all you have to do is fill out the form at the top of this page.
Should you find that you have any additional questions regarding the amount of funeral insurance that you need – or even if you just have questions about life insurance in general – we can be reached directly. Our experts can walk you through the details that can help you to feel more confident about the coverage that you are purchasing so that you understand exactly what you are getting for your premium dollar. We can be reached via phone, toll-free, by dialing 888-389-8676.
We understand that determining the amount of funeral insurance that you need may at first seem a bit daunting. There are many variables to be aware of – and you want to ensure that you don’t leave anything out. But the good news is that you have an ally on your side when it comes to the purchase of the right type and amount of funeral insurance coverage for you. So, contact us today – we’re here to help.
One of the worst mistakes that you can make is to purchase insurance coverage, but not have enough. That could leave your family with a massive amount of debt, and no money to pay off all of those bills. Not having enough insurance can put your loved ones under a massive amount of debt, which will make an already difficult situation a thousand times worse.
After you’ve calculated your insurance needs, you may find that you need a larger plan that what a burial insurance policy can cover. Luckily, you can find plenty of quality and affordable life insurance policies. It’s vital that you get the coverage that your family needs. Don’t wait any longer to start the insurance process.
Our agents have years of experience working with different insurance companies and we can make the process as quick and easy for you. You can’t avoid death, which means that you should always plan for the worst to make the experience as easy as possible for your family.
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