There are loads of different state laws and regulations that affect final expense coverage, pre-need burial plans, and burial insurance. Even right here in our hometown, there are stipulations as to how one's estate is handled after they die. It can be beneficial for a person planning on buying one of these policies to discuss the matter with a family attorney or state representative. They know the ins and outs of what can or cannot be done and will be happy to guide you along the way.
After all, there are plenty of products for end of life expenses, but not all of them are good. So, it is in the interested party's best interest to learn all they can about their state's laws to avoid making a bad financial decision. The regulations regarding burials are slightly different everywhere. For instance, California residents that dispose or deposit human remains anywhere but in a cemetery might find themselves in hot water. If they are found guilty of this misdemeanor, jail time, as well as a $10,000 fine, could be in their future.
Meanwhile, many, many states demand that a funeral director be used in the burial process, no matter where the deceased is being buried. His or her participation can make the funeral cost skyrocket. Due to most places requiring funeral directors, the industry created a product known as prepaid burial plans that in some locations can be purchased through the funeral home, cutting out the middle man, the licensed insurance professional.
Useful Details About Prepaid Burial Plans
These products are sold as a way to lock in funeral costs, which, as it stands right now, have been doubling about every ten years. In some cases, depending on where you live, the state may require you to name the funeral home as the beneficiary. These plans sound like great deals, but there are several notable problems associated with them. For one, they are not portable, meaning that if you move, it is usually not possible to take the plan with you.
Also, this is a whole life product with a growing cash component. Some states allow the funeral home to withdraw the interest each year. Why should they receive cash benefits from your purchase? Lastly, a prepaid funeral plan takes away your freedom. The policyholder can't pick their beneficiary, add extra coverage options, or even determine where the money gets spent.
Don't Fret As There Is A Better Alternative Available
Burial insurance is available to people aged 45 to 85. Coverage varies depending on what the person chooses, but it typically ranges between $2,000 and $50,000. The premiums never rise. Instead, they remain at a fixed level for as long as you have the policy. Additionally, unlike some other insurances, there is no medical exam required with burial insurance. Thus, a person's health does not prevent them from getting coverage.
Consumers that are still on the fence about burial insurance should stay put as there is still more. It is possible for the premium to grow over time. Should an emergency happen to arise, the policyholder can borrow against the cash. In some cases, they may even use the cash to pay their monthly payments. On a final note, there are accelerated death benefit options with burial insurance. In other words, the benefit becomes immediately available if the person is diagnosed with a terminal illness.
Contact one of our representatives today to discuss your burial insurance options.