Obsessing about your death might be considered unhealthy and morbid. However, planning for how to best take care of your loved ones after your passing is both an act of prudence and, in some ways, love. You are taking some of the burdens of dealing with your passing away from your family by handling it now yourself.
For some people this means thinking about investing in burial insurance. But why would you want to do this? What can burial insurance do for you?
How It Works
As the name suggests, burial insurance is a type of insurance policy that is aimed only at paying the expenses associated with passing away. Unlike general life insurance, it can’t be used to invest in stocks, buy property, or go on a trip; the money must be spent on funeral expenses.
In this regard, burial insurance is perfect for those that want to have contingencies in place for a funeral. Without having burial insurance in place, this means that surviving family members must, in addition to dealing with the loss of a loved one, now work out how to pay for the funeral of that loved one. Burial insurance can address this.
Funerals Aren’t Cheap
One of the reasons why burial insurance can be so important is that many people drastically underestimate how much an average American funeral can cost. It is not $100, not $500, not even $5000. A typical funeral in America averages about $10,000 and often goes up from there, depending on the size and extravagance.
Social security may offer $200 in coverage, but this is hardly adequate to the task involved. This is why it’s often important to plan ahead. The death of a loved is hard enough a burden to bear, but if that burden also now comes with additional debt from the funeral, it’s a painful expense.
It’s Easier To Get
Another reason why more people should think specifically about burial insurance is that it’s easier to secure than other forms of funding. General life insurance, for example, can certainly be used to pay for funeral expenses, but qualifying for life insurance—especially for the elderly—can be more difficult. Medical exams are requirements, and if there are pre-existing conditions already in place that makes things difficult.
In addition, if a person is a single, and planned to use the will to pay for expenses, the funds involved in a will may go into probate, which can lock those funds for up to a year until all the legalities have been sorted. In the meantime, that funeral needs to be paid for now.
If you don’t have the discretionary income to put away for funeral expenses, so that there’s a dedicated amount of cash ready to go, burial insurance is the better way to go. It’s easier to qualify for, and because of the focused nature of the policy, the rates on monthly premiums aren’t as high as they are for other types of insurance.
If you’d like to know more about your burial insurance options here then contact us. We can help you to find the policy that meets your needs.