Q: What is burial insurance for?
A: Burial insurance provides the policyholder with a pre-determined amount of money when they die. It is a form of term life insurance, but is designed to be a low-cost, easy to qualify for alternative to more traditional life insurance policies. The idea behind them is to cover the costs of funeral services and any other expenses relating to one’s final needs and/or wishes. You can learn more about burial insurance here.
Q: Then what is funeral insurance?
A: Funeral insurance is just another common name used for burial insurance, as is final expense insurance.
Q: Why do I need burial insurance?
A: You may not need it. It is most often purchased by those who have no other form of life insurance or who may not qualify for traditional life insurance policies. It is cheaper than traditional policies making it a great alternative to those who cannot afford life insurance or for those who have been turned down for a life insurance policy. The average funeral cost in the United States has skyrocketed to over $7,000, making burial insurance a great option to prevent leaving this sort of financial burden to be passed on to loved ones.
Q: How much burial insurance coverage should I get?
A: This is going to depend solely on your needs and wishes. Do you want a large funeral service or a smaller private service? It’s a good idea to price out your expected funeral costs to get a good idea of how much burial insurance you might need.
Q: Does the death benefit of a burial insurance policy have to be used on funeral expenses?
A: No. The beneficiaries may use the funds in any way they choose. This can include paying debts, loans, medical bills, legal fees, or keeping the money as an inheritance.
Q: Do burial insurance premiums change?
A: Once a funeral insurance policy is purchased, the premiums remain the same. Premiums will be based on your current age, health, and location. Some policies do have some payout restrictions. If you pass away before a certain amount of time has passed, your beneficiaries may not receive 100% of the death benefit.
Q: Can I cancel a burial insurance policy?
A: The only way to cancel after purchase is to stop paying the premiums. If the policyholder does not pay their premiums, the policy becomes void. No refund of any paid premiums will be made.
Q: Which burial insurance company is best?
A: Each company that offers burial insurance is going to offer different policy options at different price points. Which company is best is not as important as which company is best for you. The best way to determine this is to get quotes from a few different companies to compare.
Q: Can I qualify for a final expense insurance policy if I have health issues?
A: Burial insurance policies are designed to assist those with non-terminal illnesses get insurance to cover their final expenses. It is much easy to qualify for a burial insurance policy than it is for a traditional life insurance policy, but there are still some health issues that might cause an insurance company to turn down an application. Burial insurance is a form of insurance that requires no medical exam, which means there are no health screenings or test required to qualify.
Q: How much does a funeral insurance policy cost?
A: Your cost is going to vary based on a number of factors, primarily among these being your age, current health, location, and the amount of coverage you desire. Things like tobacco use and a family history of heart disease will drive the price upwards. The best way to find out how much a policy will cost you is to get a free quote.
Q: Does a burial insurance policy expire?
A: No. As long as the premiums are paid, a burial insurance policy lasts until you pass away, at which point your beneficiaries receive a cash payout of your policy.