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Do Young Adults Need Burial Insurance And Why
Most insurance policies have become a vital part of our life. Insurance policies for health and automobiles are a necessary expense that people have come to accept.
Other insurance policies, such as life and flight insurance for children or occasional flyers, are not as necessary. In other words, while some insurance is vital to everyday life and generally good for everyone, others are very case-specific.
Some policies, like flight insurance, can prove to be very useful for certain people but not for everyone.
However, if you are someone who doesn’t know or understand what Burial insurance is, this guide is for you.
Here, we will go over everything that there is to know about burial insurance and how it can help you.
Let’s start with what is burial life insurance...
What Is Burial Life Insurance
Burial life insurance is a policy that will help you pay off most or all of your overdue expenses. It goes by a variety of names, such as funeral insurance, pre-need insurance, and final expense insurance.
And although all of these insurance policies carry different names, they follow somewhat the same process and offer the same thing with a few key differences.
These insurance policies allow you to save up for your funeral in a meaningful way so that your family will not have to stress and worry once you pass away.
Is Life Insurance And Burial Insurance The Same Thing
The major difference between a burial life insurance (and others like it) and life insurance is the payout. While a life insurance policy can be for a few hundred thousand or a few million, these burial insurance policies only offer you $15,000 or $20,000.
This payout is often just enough to pay for a funeral and all of its related expenses and can cover some of your medical bills.
On the other hand, these burial insurance policies differ, if ever so slightly. Each of them offers something different to their customers and is a great way to give people more options when it comes to their insurance policies.
So now let’s take a look at some of the types of burial life insurance that you can choose from, starting with Pre-Need Funeral Insurance.
Pre-Need Funeral Insurance
Pre-need funeral insurance is one of the few types of funeral insurance that you can get. While they have the same premiums as most ranging between $10,000 to $20,000, this is a service that a funeral home or service provides.
These services are often the result of a partnership between the funeral home and the insurance company. That means this insurance service will pay much sooner, i.e. a few days, than most insurance policies that would sometimes take weeks.
But, similar to other insurance policies, like life insurance, you will pay your premiums indefinitely. And once you pass away, the funeral service provider will handle the funeral costs.
Now, due to this service being limited to a specific funeral service, you may incur problems in receiving the payout. The funeral service provider may also request a beneficiary in your policy, but this is not the norm in all of the Pre-Need Funeral insurance services.
Nonetheless, these insurance policies are actually incredibly beneficial to a person who is passing soon, as they can also pay out very early.
Burial Insurance or Final Expense Insurance
Burial Life insurance and final expense insurance is in many ways the polar opposite of the Pre-Need Funeral insurance policy. And the biggest difference between the two is easy that the pre-need funeral insurance is a service that a particular funeral home provides.
On the other hand, a burial or final expense insurance policy is a service that an insurance company provides themselves.
So, right off the bat, the biggest advantage that you get for choosing burial insurance is that no matter where you die, you can always get the payout necessary for the funeral.
Of course, it means that your beneficiaries will receive the money that you have as insurance. Additionally, there is no risk that they may not spend it on your funeral.
This payout can cover all of the funeral expenses and some other medical bills, making it great for people who want a lot more liberty with how they spend their money.
This burial insurance is also often a lifetime policy. Of course, since the policy is tied to the company itself, in the case that it goes bankrupt, you will not receive your payout at all.
Now, although this is a relatively smaller payout than that of life insurance, it is actually much faster.
Where life insurance would possibly take weeks or months to the process, burial insurance can take days. Leaving you capable of paying for all of the funeral expenses.
How Does It Help You
Now we move onto what is possibly the most important part of this guide. How does burial life insurance help you?
Clearly, people get these types of insurance policies when they know that their life is short. However, you (even as a young adult) can really benefit from getting a burial insurance, instead of other types of life insurance.
Below are a few benefits that burial Insurance has over other types of life insurance.
Easy To Get
Let’s start with the most obvious one. It is much easier to get than other life insurance policies. You don’t have to go through a medical exam or other tests to prove whether or not you’re eligible to get an insurance policy. Instead, you will just have to answer some questions about your age, smoking history, and whether or not you have some serious conditions. After answering these questions and qualifying you can have on your hands an insurance policy that can keep your family at peace even when you pass.
More Variety And Clearer Guidelines
One of the major selling points of burial insurance is easily that there is a lot more variety when it comes to the policy that you choose. From choosing a policy from a funeral provider itself to going to an insurance provider for an insurance policy, there is no shortage of options for you to choose from. While they may be only two options, they are still more than what most other policies are providing. And sure, they come with their own complications and flaws, everything is in black and white. There are no hidden clauses or temporary terms, these policy providers have very clear guidelines.
Takes Considerably Less Time
Now due to the sheer volume of money that most life insurance policies payout, it can take a long time before your family can get their hands on your savings. It can sometimes take weeks for the money to fully come through, meaning that your family will still have to pay for the funeral on their own. Now Burial insurance policies ensure that your family gets the money in a few days of providing your death certificate, and they can make all of the payments for your funeral.
Getting insurance can be a very slippery slope sometimes, especially when you are still relatively young. The premiums can be a little pricey, and not making payments on time can also result in your policy going away entirely.
Luckily, burial insurance is one of those policies that doesn’t require a massive commitment, and a lot faster than most of its contemporaries.
Surely, it has its fair share of drawbacks. However, it is still a good policy to invest in, especially if you are new to insurance policies for funeral and burial.
Moreover, even if you want to upgrade your policy, you can just get that done by going to your insurance provider. In conclusion, do not hesitate to get burial insurance, it can save your family a lot of trouble and stress.
CLICK HERE for more information on the cost of funerals today.