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According to the recent survey, an average funeral expense ranges from $7000 to $10,000. In general, these expenses include everything from burial to installation of grave’s headstone.
Article Easy Navigation
- Is Funeral Insurance A Good Idea
- What Is The Average Cost Of Burial Insurance
- What is Burial Life Insurance
- How To Find The Best Feature Of Burial Life Insurance
- Types Of Burial Insurance
- Fast Approval
- Charges You Small Face Value
- No Medical Exam
- You Get Permanent Coverage
- Does Burial Insurance Have Cash Value
- Fast Payouts
- Tips to Find the Right Burial Life Insurance
- Avoid Withholding Information
- Plan Ahead
- Review Your Insurance Coverage
- Know Your Beneficiaries
- Key Takeaway
Is Funeral Insurance A Good Idea
Is Burial Insurance Worth Buying
Does insurance cover funeral cost? No matter what your age is, opting for burial insurance ensures that your funeral expenses will not become a hassle or burden to your loved ones. The policy aims to provide easily-qualify finance for your whole life.
There is no denying that funeral planning is one of the important elements of your long-term financial plan. With an increase in mortality rate, more and more people regardless of what their age are buying burial policies for their final services.
What Is The Average Cost Of Burial Insurance
Burial insurance is one way to make funeral expenses easier to manage and bear. The good news is that there are plenty of companies that offer plans designed specifically to help people pay for their end-of-life expenses. If you pay your premiums, you can get coverage of your burial expenses.
With multiple options to choose from, finding the right and affordable burial life insurance policy may get hectic and stressful. Your insurer may deny your claims or ask you to pay more premiums than other insurance companies, taking advantage of your amateurism.
That is to say, to make the most of the death benefits, you need to be careful and must know the right features of a burial life insurance policy.
Let us take an overview in detail of what ideal features should a burial life insurance policy or plan has to help you find the right one.
What is Burial Life Insurance
Typically, for the seniors, a burial life insurance is a whole life policy with limited underwriting. It does not include any medical examinations and people; especially seniors who have health issues that can easily qualify. The policy pays for funeral expenses, which is one of the primary reasons for people purchasing it. It offers death benefits and also termed as final expenses and funeral insurance policy by some insurance companies.
Although insurance companies may have their hidden clauses, there are certain features or statements that all burial policies must have:
- The monthly payments for life are fixed, and they should not increase
- An insurer cannot decrease the coverage for any reason
- The policy doesn’t expire no matter how old you get
- The accumulated cash value can be borrowed as a loan against the insurance policy
After your death, your beneficiary(s) receives a tax-free payment that is equal to the death benefit. This money allows them to make payments for your funeral expenses.
How To Find The Best Feature Of Burial Life Insurance
As mentioned earlier, to maximize your death benefits, it is important to know the best features of the insurance company. It is because there are policies that may have long waiting periods or may make you pay more for the same death benefit you can get from any insurance companies. In addition, you must get the coverage from a financially stable insurance company.
Take a look at the following features of burial life insurance and make sure to assess the insurance policy on the bases of these elements.
Types Of Burial Insurance
Easily Qualifiable With Relaxed Underwriting
This is one of the qualities that set burial life insurance apart from other policies. It is easily qualifiable because of its relaxed underwriting. In other words, anyone whether young or old can qualify for the burial life insurance. Although people who tend to develop the risk of serious health complications purchase burial life insurance, anyone can easily qualify for it.
Because insurance companies are well aware of this fact, they design the plans that give coverage to people who have some preexisting conditions. However, if you are suffering from life-threatening issues that include Alzheimer’s, cancer, dementia, or heart attacks, you may not be available to qualify.
Know that burial life insurance includes in one of the policies that have fast approval. The longest someone has to wait is 2 to 3 business days for the application to get the approval. If an insurance company is making you wait longer, it is raised a red flag. It is better to find another option.
Charges You Small Face Value
Another feature that you must be aware of while buying a burial life insurance policy is its small face value. That means you do not need to buy what you do not need. You can buy even $1000 coverage with burial life insurance.
No Medical Exam
Remember that no insurance company requires you to go through a medical and physical exam. A burial life insurance policy or plan completes with a simplified basis. You only have to answer health-related questions. However, there are insurers, which do not even have health questions.
You Get Permanent Coverage
A funeral life insurance plan is a whole life policy locked in for your lifetime. That means, your coverage does not expire or terminate at any age. In addition, an insurer cannot increase the premiums, nor can he/she decrease the coverage.
As a matter of fact, once you purchase the burial life insurance policy, the carrier cannot change it. This is enough to ensure that your loved ones will have money to bear the funeral expenses.
Does Burial Insurance Have Cash Value
Every burial life insurance policy accrues cash value as time passes. That means you can borrow the accumulated finances in any event when life throws a financial curveball at you.
You can also select an option when you submit an application in which you can choose your cash value as your safety net. This ensures that your insurance policy will never lapse if you miss your payments. You can use the cash value as payments. It will remain in that position until you have sufficient cash value to help you sustain your payments.
Since the purpose of purchasing burial life insurance policies is to pay the final expenses, your beneficiary must receive funds quickly. If your insurance policy does not promise you an early payout, avoid buying from them. Make sure you buy from the company that ensures paying out your claims within a week.
Thankfully, burial life insurance policies offer the following ways out. Looking for these features into any burial policy will help you choose the right one to financially aid your family in a dire situation.
Tips to Find the Right Burial Life Insurance
Knowing the features of a burial life insurance policy is not enough. To choose the best one wisely, you can use the given tips.
Avoid Withholding Information
To avail the death benefits your burial life insurance policy offers you, it is important, to be honest when it comes to answering questions of an insurer. Remember that if you hide any important information found later by an insurance company, they can deny your beneficiaries’ claims.
There are many cases when people lied about their health conditions and denied their claims when their families needed that money the most. People usually do that because there is no requirement of a medical exam in burial life insurance. However, an insurance company may ask medical records when a policyholder passes away during the contestability period.
In case the insurer finds any discrepancies between information given in the application and medical records, the company can deny the claim.
Though planning for your funeral does not sound appealing, it pays off your family. Every state might have different burial policies to get secure funeral life insurance. It is wise to understand the funeral policy as well as funeral costs in your state. Check out the general funeral price lists to get an idea of your funeral arrangements. Moreover, make sure you provide all the pertinent details, along with the documents to the in-charge of your funeral affair.
You can share the final wishes you want to have at your funeral. From guests to flowers, you can document everything ahead to save your family from stress and financial burden.
Review Your Insurance Coverage
It is one of the most important tips to make the most of your burial life insurance policy. Funeral cost is increasing over time, and your health condition can also change when you get older. It is important to understand that life insurance policy is not your one-time purchase. You need to keep reviewing your coverage to make sure you have sufficient funds that can protect your family members.
Know Your Beneficiaries
You can make three types of beneficiaries that include primary, secondary, and tertiary. Your primary beneficiary will receive 100 percent of the death benefits when you die. However, if a primary beneficiary dies before you, the secondary beneficiary will receive the death benefits. The same condition applies to a tertiary beneficiary who will be the last resort in the list.
Overall, burial life insurance is undeniably a great way to keep your family safe from the financial crisis and burden of funeral expenses when you die. However, knowing the right features and tips is pivotal to find the right burial life insurance.
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