If you’ve reached the stage in your life when you start planning your own funeral, you’ve probably noticed that a proper funeral can be a very expensive event. Some of the potential costs include:
The casket: $2,000
The burial plot: $1,000
The headstone: $1,500
The embalming: $500-$750
The burial services: $1,600
The funeral services: $2,000-$2,500
As you can see, these numbers add up quickly, and so your end-of-life expenses could quickly reach $10,000 or more depending on your area and how simple or complex you want your funeral to be. Then there are other potential costs like holding a wake or a funeral and the legal fees associated with settling an estate and executing a will. Dying can be expensive, but that’s why insurance companies offer burial insurance.
What Is Burial Insurance?
Burial insurance, also called funeral insurance and final expense insurance, is a kind of life insurance policy with a very specific focus. While other forms of life insurance will pay a set amount after your death, burial insurance will only cover certain expenses that come from performing a funeral, a burial, a cremation, and so on. In other words, it works more like auto insurance or homeowner’s insurance by covering expenses up to a certain amount determined by your policy cap.
Who Qualifies For Burial Insurance?
Anyone can qualify for burial insurance no matter what their age, health, or background happens to be. If you want the best policies with the lowest premiums, you may need to answer a few basic questions about your current health. However, guaranteed burial insurance will accept anyone and begin the coverage period within a few days.
Most burial insurance is graded, which means the full policy doesn’t kick in until around two to three years after you begin paying premiums. You can find some policies that offer level benefits, which means they offer full coverage immediately, but these policies usually have much lower payment limits. Then there are preneed policies offered by funeral homes. These policies can be quick to buy and have low premiums, but they only cover the services offered by the funeral home and pay out directly to the business.
How Much Burial Insurance Is Enough?
All told, an average funeral can cost around $7,000 to $10,000. Burial insurance policies can range from $5,000 to $50,000, but since they only cover expenses there’s no point in getting more than you need. If you have your final arrangements all planned out, you should get just enough burial insurance to cover everything (plus a little extra for unforeseen expenses), and if you don’t you should get enough to cover the average.
It’s never good when a loved one dies, but it can always be worse if they have to worry about things like debts and thousands of dollars of unexpected expenses. Burial insurance will make sure your family doesn’t have to worry about paying for your funeral and burial out of their savings or by taking out a loan. Contact your life insurance broker today to find out what your options are.