Why Burial Life Insurance Is Different From State To State

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If you or a loved one has questions regarding burial insurance from state to state and would like further information on how to protect your loved ones from financial burden with obtaining a final expense insurance policy, we are here to assist you.


Will Moving To A Different State Affect My Burial Insurance Policy

Of course, you can get life insurance regardless of what state you live in. There are several laws that regulate how your state treats you once you die. In fact, these laws and regulations influence your final expense insurance, burial insurance, and pre-need burial plans.

The reason for this impact is that each state has different laws in terms of regulating burial or funeral insurance policies. That is to say; each state is different when it comes to treating people when they pass away.

For example, California is included in some of the states that have restrictive burial and funeral laws. In fact, according to Californian laws, if you deposit human remains anywhere except a cemetery, you will be charged with a misdemeanor and could be sent to jail or fined a penalty up to $10,000.

Similarly, some states consider the participation of funeral director important in the burial process no matter where the deceased is buried.

This might sound strange to you, but the required participation or presence of the funeral director affects the funeral cost and the way burial life insurance works. That is what makes finding burial insurance laws of the different state essential if you want to make the most of it.


How To Find Burial Life Insurance Laws of Different States

No matter in which state you live in, understanding the state laws of burial life insurance helps you plan your funeral expenses. In fact, even if your parents move from state to state, this article will shed some light on how to obtain burial insurance for your mom and dad.

Also, keep in mind, it does not matter if they have a pre-existing condition. We are contracted with the top A+ rated insurance carriers that accept many health impairments with offering you and your parents instant same-day coverage!

You would be surprised, some of these health impairments include, Atrial Fibrillation, high blood pressure, diabetes, etc.

The funeral industry has many products that deal with end-of-life expenses. That doesn’t mean that all products are good, but knowing about the laws of your state can be of great help to avoid bad financial funeral decisions.

Hiring the services of a local attorney in such a case is the wise idea to understand the impact.

Likewise, an attorney can explain to you the positives or negatives of burial laws of your state on the insurance policy or end-of-life planning and guide you in the right direction. 

Furthermore, attorneys can help because they are qualified professionals who know and understand the state regulations and can guide you on how to plan the future of your family.


What Does A General Burial Life Insurance Policy Covers 

What does a burial policy cover? Before delving into burial plans of different states, let’s quickly overview general burial life insurance policies.

Precisely, it is a cash benefit that is payable when the policyholder dies. It follows the terms of the insurance policy when it is purchased.

In general, people purchase funeral plans to ensure that their family will be able to cover the final expenses of burial, funeral home, memorial services, and cremation facility.

What is worth noting here is that there is no law or rule about how that money should be spent? It all depends on the beneficiary -the person who receives the burial insurance amount and is responsible for funeral duties.

Following may be included in some of the final expenses a beneficiary can incur to the costs of the funeral;

  • If a loved one dies in another state, the beneficiary has to travel to carry out funeral duties
  • A beneficiary might need to serve and feed the funeral guests
  • Funeral expenses including the coffin, funeral services, mortuary charges
  • A beneficiary might need the services of a probate lawyer to settle the estate and property issues

Although the face value of the burial life insurance policies is modest, a beneficiary gets a lump sum amount of money.

To receive those final expenses, the beneficiary needs to submit the copy of the death certificate of the deceased.  Additionally, a death certificate may take time if the cause of death is suspicious, or it is a suicide case or a legal matter.

However, many funeral homes accept a photocopy of insurance policy that guarantees your prepayment. They often contact the insurance company to confirm that funds are coming from the insurer.


Does Burial Insurance Have Cash Value

Is burial insurance worth it? YES! Because your burial insurance policy is a simplified whole life policy, the cash value builds over time.

Not only does a burial policy offer you cash value, but these burial insurance policies also offer you living benefits. Meaning, God Forbid you become terminally ill, you can tap into the policy while you are living to help pay for your medical expenses.

In contrast, prepaid burial insurance through your funeral home does not offer living benefits. If something was to happen to you, you could not utilize this feature in a prepaid burial policy.

Burial insurance policies give you more bang for your buck and offer you something that is completely priceless… PEACE OF MIND!


State Laws for Burial Life Insurance Plans

Do funeral homes sell burial insurance? As mentioned earlier, most of the states require funeral directors participation; the funeral industry has designed a burial life insurance product.

In some states such as California and New York allow funeral homes to sell the product without having the need for licensed insurance professionals. Technically, this life insurance product refers to the Prepaid Burial Life Insurance Plan.

It generally incorporates the following details;

  • Burial Life Insurance Plan is a whole life product that funeral homes sell.
  • In some states, policyholders are required to name funeral director or funeral homes as the product beneficiary.
  • Burial Life Insurance Plan includes a cash value component. That means many states allow the funeral homes to withdraw the interest rate that increases on each year’s cash value.
  • Not all funeral homes offer these benefits.
  • Burial Life Insurance Plan is sold to lock in final expenses costs as funeral costs double in ten years
  • Not profitable. If you shift to another state, the burial life insurance plan might not correspond to the burial laws of that state. Some states such as New Jersey and New York have strict rules for burial life insurance plans.

There is no denying that burial life insurance plans are effective when it comes to preparing and protecting your family from the impact of funeral costs. 

It is important because there is a continued rise in the funeral cost in American society as compared to other countries.

The best part of burial life insurance is that you have the freedom to choose the beneficiary. Most importantly, your family can decide how to spend the insurance money.


Does Your Residence State Affect Burial Insurance Rates 

To answer the question precisely, the state of your residence does affect your burial insurance rate.

However, it has its effects on a very few policyholders in a few states. For instance, policyholders in Washington, California, and New York have strict burial laws that affect their burial insurance rates.

The rest of the states have the same burial insurance rates. The concerning thing about the burial insurance rates is the laws in different states that govern what burial insurance policies can or cannot allow and cover. There are some states where limited coverage amount is available.

Take a look at the summary of burial insurance rate coverage with monthly premium in different states;

 

 

Age & Gender

 

 

Monthly Premium

 

 

Coverage

50-year-old female$25$10,000
60-year-old female$41$10,000
80-year-old female$100$10,000
50-year-old male$30$10,000
60 50-year-old male$55$10,000
80 50-year-old male$130$10,000

The table shows that burial life insurance is an inexpensive and worthy investment for the families to cover funeral costs.  

Unlike other life insurance policies, you don’t need to pay more than what you are covered for. 

Burial life insurance provides coverage in all the states, depending on the specific burial laws.  The aim of the burial life insurance is to protect the needs of the decease’s family in the event of a policy holder’s death.

Moreover, people who suffer from different health conditions can have a change in the rates. Burial life insurance policies are commonly graded as death benefit policies


Key Takeaway

In a nutshell, burial life insurance policies offer plenty of death benefits to cover the funeral cost.

In fact, it typically varies from state to state, governed by the burial rules and regulation of the state.

Many insurance companies that offer coverage for funeral expenses, but they may have their own restrictions according to state burial laws.

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