There are plenty of different types of insurance, and among them there are several options focusing directly on end of life expenses. Burial insurance is a perfect example of this, and it is something that can offer relief and peace of mind to families after the loss of a loved one.
What Is Burial Insurance?
Burial insurance is a kind of smaller life insurance policy that covers nothing more than end of life expense. Its primary function is simple – avoid leaving family members struggling financially as they try to figure out how to pay for funerary costs after a loved one days.
In the funeral world, burial insurance is also called final expense insurance. There are actually two types of burial insurance available, and finding the right one is important. But first, understanding more about burial insurance will be a must.
Average Funeral Costs
Dying isn’t cheap in today’s world. The median cost of a funeral today is $7,360, according to the National Funeral Directors Association. This includes a variety of things including:
Transfer of remains
Even a cremation is expensive – roughly $1,100. And this is just for the actual cremation itself. As such, those left behind when a loved one passes away will often be left struggling with huge financial burdens.
The Two Types Of Insurance
There are two primary types of burial insurance that you will be able to choose from – Preneed and Traditional. Each has its pros and cons.
Preneed Funeral Insurance – This is actually structured more like a pre-payment plan than an actual insurance policy. In this, you will basically pay for the funeral before you die, paying off an installment plan that can be set up for one year through ten years. Once your balance is paid off, you’ll be covered for the rest of your life.
Final Expense Insurance – This is the type of burial insurance most think of. You’ll pay a monthly payment, and if you pass away you will receive the overall benefit cost as long as all premiums are paid up. Monthly payments can range from $26 or $27 all the way up to more than $180 per month depending on health and age.
You’ll want to consider a variety of factors including your current age, your health, your income level, and more when choosing between the two types of burial insurance.
What Does Burial Insurance Cover?
So just what does burial insurance really cover? Essentially, everything that relates to the overall funeral costs of a deceased. This includes anything related to the process of preparing the body, burying it, and more.
This has the obvious benefit of paying for the funeral, but it also helps loved ones by taking the burden of payment off their shoulders and letting it fall to the insurance companies instead. In order to get good insurance rates, talking directly to an insurance agent is important and will have a tremendous impact on your overall level of coverage, monthly costs, and more. Contact us to see what we can do for you.