Burial, or funeral, insurance is a form of insurance that is easy to qualify for, and unlike term or whole life insurance which have more strict qualifications and can cost thousands of dollars, is quite affordable. It is one of the most frequently bought forms of insurance today.
Burial insurance, as the name implies, covers the cost of your funeral and burial arrangements when you pass away. It can also cover cremation costs. People are often surprised to find out how expensive funerals can be. When all the associated expenses are added up, it is not uncommon for final arrangements to cost several thousand dollars. Since so many people do not realize how expensive funerals are, they often fail to make financial arrangements to leave funds for their loved ones to shoulder this financial burden. The grieving is hard enough to deal with when mourning the passing of someone close to us, but having to deal with figuring out how to pay for the funeral costs as well can put a lot of undue stress on family members.
Traditional life insurance can also cover the cost of a funeral, but unlike typical forms of life insurance, funeral insurance has very few qualifying limitations. This makes it an ideal solution for those who do not wish to pay the much higher cost of a traditional life insurance policy or who cannot qualify for one due to health conditions.
Finding a Policy
Before you begin shopping for a policy, you should take some time to think about what kind of funeral service and arrangements you want for yourself. Do some research to determine how much your preferred funeral will cost. It is even advisable to meet with a funeral director and plan out your final arrangements ahead of time, allowing you to know exactly what the cost will be. Any costs associated with your service will be covered by your burial insurance policy including:
- Burial plot or vault
- Headstone or marker
- Service accommodations
- Funeral decorations
- Procession costs including vehicle rentals
You will want to price this stuff out to get an idea of how much burial insurance you will need.
Paying for Burial Insurance
A funeral insurance policy offers several different options to pay. The policy provider may have a required method in some cases. Iin others, you will be able to choose the one that best suits you.
- Lump Sum Payment: You may be offered the option to make a lump sum payment. This is a one-time cash payment of the total value of the policy. This provides the insured with 100% of the policy coverage as soon as the payment is made. In some situations, even those over the age limit for most policies can still qualify if they elect to pay with this option.
- Graded Payment: This allows the insured to select a length of payment and the policy will provide pro-rated coverage amount based on the amount of the policy which has been paid.
- Traditional Payment: With this option you have a set monthly premium to pay. You receive full coverage immediately as long as you continue to make your payments. Once you stop paying, the policy immediately becomes void.
Certain items associated with your funeral can often be prepaid through your burial insurance provider. Prepaying for a casket, burial plot, and any other necessary accommodations provides you with protection against price increases. No matter how much costs may have risen by the time you pass away, your cost does not.
As you shop for the burial insurance policy that best suits your needs, be sure to shop around and get quotes from several different insurance carriers so that you can compare rates and find the most affordable policy.