Funeral costs are a sudden and final expense that no one can escape. The wise among us plan for this inevitable expense with funds, so that family members are not caught by surprise with burial costs close to $10,000.
Funeral / Burial Insurance Definition
Burial insurance, also known as burial or final expense, is a whole life policy purchased to help cover end-of-life expenses such as a burial plot, funeral service, casket, flowers and other burial-related items is called burial insurance, funeral insurance or final expense insurance.
How Burial Insurance Works
Burial insurance is purchased for a pre-determined, finite amount by paying a locked-in premium. The proceeds, generally between $5,000 and $25,000, can be used to pay for funeral arrangements but can also be spent on how the beneficiary wants.
The main feature of this policy is a premium amount that doesn’t change and a pre-specified benefit amount. The beneficiary can be anyone the insured person designates, and the funds can be spent in whatever way needed.
The other important selling point is that unlike other life insurance policies, burial insurance genreally does not include a medical exam. You can get approved instantly over the phone or through a agent.
Why Buy it?
The purpose of buying burial insurance is to relieve the burden that will be placed on loved ones during a time when they are grieving and unsure of what to do. Another advantage of having it is to keep family members from overspending.
Having the power to decide exactly how the arrangements are handled and where they will take place instead of leaving that for others to choose is an important reason for deciding to insure. An insurance policy, along with a will, can specify what the arrangements are and how they will be paid for, relieving others of that decision.
How to Know What to Get
When purchasing insurance, the most important thing is for the policyholder to determine how much they can afford monthly. It’s also essential to select an insurance company with longevity and a good reputation.