A funeral is an inevitable final expense and one that everyone will face at one point or another in their lives. While families are left reeling from the death of a loved one, they must also now face the debt associated with taking care of that loved one’s final wishes, and burial insurance takes away that very real stress. The average funeral in North America can cost upwards of $8,000, leaving the average middle-class family wondering where they’re going to get the money to pay for their loved one’s final expenses.
Burial insurance takes care of these final expenses and provides peace of mind that a person will leave loved ones in a good financial position while still having their final wishes met.
How Does It Work?
Burial insurance is coverage a person invests in to take care of their final expenses specifically. Sometimes called funeral insurance or final expense insurance, burial insurance is a form of whole life insurance, meaning coverage never goes down and premiums never go up as long as payments remain in good standing. While traditional life insurance pays for various different expenses depending on your policy, it also comes with a higher premium rate, making burial insurance a more affordable option in taking care of final expenses in particular.
When a person passes away, burial insurance can may payments to the beneficiary in as little as 24 to 48 hours after death. This differs from traditional life insurance plans which typically require families to shell out the money for the final expenses to be reimbursed later, sometimes weeks to months after a death certificate has been issued. The payments received from a burial insurance policy will cover all types of final expenses, from medical costs to transportation and flowers at the funeral.
Naturally, different burial insurance plans will come with different coverage amounts, and this is something to pay close attention to when finding the right burial insurance to cover any final wishes. If a person wants little else but a cremation, a policy covering only a couple thousand dollars may be necessary, while if a person wishes for a full funeral and burial, they may require a policy covering $10,000 to $15,000. Breaking down the various costs associated with funerals can help a person to find the right policy to suit their needs.
Different Burial Insurance Plans
Burial insurance plans will differ and vary just like traditional life insurance plans. Some may include underwriting, or health questions, while others leave health information out of the equation entirely. Typically, for those in good health, opting for an underwritten plan is beneficial in paying lower premiums for a higher coverage plan, as those with no underwriting will often come along with higher premiums and mandatory waiting periods.
If you’re looking for the burial insurance plan that works best for your wishes, your budget, and your family, contact Living Legacy today.