Perhaps you have heard people mention burial insurance in the past, but you never quite understood it or what it entailed. You may also already know what it is, and you have some questions about what it does and doesn't cover and what you need to apply. If this is the case, you have definitely come to the right place.
Today, we will walk you through this brief guide to help you better understand burial insurance and how it can benefit you in the future.
What Is Burial Insurance?
Burial insurance is also often referred to as funeral insurance and has available coverage amounts spanning between $1000 and up to $50,000 for death benefits. Since funerals can cost thousands of dollars and many don't have access to adequate savings account to pay all these final expenses, burial insurance is an affordable solution that can help guarantee a more stable financial future.
How Does it Work?
When the policyholder passes, the insurance company will process the claim as soon as the beneficiary has completed the appropriate forms and has sent over the required documentation. Once the claim is complete, the family will receive a check that will help cover all the costs associated with their loved ones passing.
Burial Insurance Versus Final Expense Insurance
These two terms are often confused with one another. Final expense insurance includes all final costs in addition to the burial while burial insurance just covers the costs associated with the funeral. For those who do not have any serious medical conditions and are under the age of 85, then burial insurance is a policy that can easily be attained.
Purchasing Burial Insurance
Before purchasing a burial insurance policy, you should understand the different plans that are available to you. These plans include:
Level Plans. This kind of plan will stay fixed for the life of the policy, and there is no waiting period before the payout. To qualify, you will most likely just need to answer several questions. You will also find that these policies are competitively priced.
Modified Plans. This kind of plan, also known as a graded benefit plan, is designed for seniors facing high-risk health conditions. They will not qualify for level coverage for this reason. These plans typically are more expensive, and the benefits only kick in gradually.
Burial Insurance Costs
Most coverage amounts are between $5,000 and $25,000 while some companies may offer plans up to twice this amount. However, since the coverage is lower, the premiums will be lower. Burial insurance plans are very economical and affordable, and you only pay for the amount of coverage you want.
Benefits of Burial Insurance
With burial insurance, you will find that all your financial concerns will be addressed, and you will not have to stress out over finding ways to pay the final expenses of your loved ones. There is also no requirement for a blood or urine test, and no medical exam is needed, so it is easy to apply and qualify for this type of insurance.
It is also possible to receive the benefits payout within the first 48 hours of the claim being accepted. If you are looking for higher maximums, you can also look into additional underwriting.
Before purchasing burial insurance, make sure you understand the coverage amounts and get as much information as possible before choosing.