There can be many different reasons why someone purchases life insurance. These can include the need to pay off large debts – such as a mortgage – for survivors, as well as to help your dependents and survivors with paying ongoing living expenses. This is especially important if you are a primary income earner, and your family would need to make drastic changes in their life without your income contribution.
The proceeds from life insurance coverage is received free of income taxation by your heirs – so this can allow them to use the entire amount of the proceeds for their needs, without having to pay a portion to Uncle Sam. But, even if you already have live insurance coverage in place, there may still be a need for you to have burial insurance.
The Need For Burial Insurance – Even If You Already Have Life Insurance Coverage
Burial insurance is a type of life insurance protection that is designed specifically for paying off one’s funeral, as well as other related costs. These may include the memorial service itself – which can encompass the expenses of the minister and the music – as well as other related items, such as a burial plot and headstone, flowers, the printing of funeral notices, and transportation for the decedent and his or her family to the grave site.
Altogether, the cost of an average funeral today – along with the related expenses – can be in the range of $7,000 to $10,000 – or even more, depending on the type of service that is chosen and where the final interment may be.
In some cases, a regular life insurance policy may be able to include these expenses, however, in many situations, the proceeds from these policies are oftentimes already earmarked for other financial needs. Therefore, burial insurance can provide a great way to ensure that this large four- or five-figure expense has also been taken care of.
Without burial insurance, it could mean that your loved ones will have to fund these expenses themselves – either directly out-of-pocket, by dipping into their savings, or worse yet, by putting these costs on credit and in turn, leaving themselves with a large balance to pay off over time.
Many burial insurance policies do not provide a large amount of proceeds – which can help to keep their premium more affordable. In many instances, a burial insurance policy may provide somewhere between $5,000 and $25,000 – which can be an ample amount of funds for the payoff of funeral and other related expenses.
Sometimes, an applicant for burial insurance will also add some additional coverage to the policy in the event that he or she may have uninsured medical expenses, hospice costs, and / or other end of life expenses that the family could end up being responsible for.
Typically, burial insurance coverage is purchased by individuals who are considered to be seniors and who are in the age range of 50 to 85. Yet, unlike regular life insurance – which may start to become unaffordable to older applicants, burial insurance can be quite affordable, as well as less difficult to qualify for.
How To Qualify For Burial Insurance
Qualifying for burial insurance can also be somewhat easier than purchasing a regular, medically underwritten life insurance policy. This is because most regular life insurance policies will require you to fully complete an application for coverage, as well as to undergo a medical examination.
Because life insurance is in large part approved (or declined) based on life expectancy factors, an applicant’s age and health can have a lot to do with whether or not they will qualify for the coverage, as well as the amount of premium that is charged.
With burial insurance, however, many policies will not require the applicant to take a medical exam. This means that there will be no blood or urine sample required. In some instances, an applicant for burial insurance may not even need to answer any medical or health related questions at all.
Because of this, burial insurance can be approved for many applicants – even if they already have an adverse health condition. Plus, once you have qualified for burial insurance, the coverage may remain in force for life, as most of these policies are a type of permanent life insurance like whole life. This also means that your premium will be guaranteed never to go up – even with increasing age and / or worsening health issues – which can be a big advantage in keeping your burial insurance premiums affordable.
What To Look For In A Burial Insurance Policy
When shopping for burial insurance, it is important to be aware of several criteria. First, while many burial insurance policies are whole life coverage, there may be some in the marketplace that are term plans. While term life insurance can often be more affordable initially than whole life, a term life insurance policy will only remain in force for a certain number of years. In addition, if an insured individual on a term life policy qualifies for an updated policy after their “term” has expired, the new premium may be much higher. With a whole life policy, though, the premium amount will typically be locked in place.
There may also be differences in how – and how much – of the death benefit proceeds will be paid out to a burial life insurance policyholder, depending on how long he or she has owned the policy prior to passing a way.
For example, in some cases, if the insured has owned the policy for less than two years when they pass away, the named beneficiary on the policy could only end up receiving a percentage of the death benefit. And, in some instances, the beneficiary may only end up receiving back the amount of the premiums that were paid into the policy. (Some insurance carriers will also offer a small amount of additional interest). Therefore, it is important to know how the benefits will be paid out.
Another key criterion when searching for the right burial insurance policy will be the amount of premium that you need to pay. Just like with other types of products and services that you purchase, the price of burial insurance may differ from one insurance company to the next – even for the very same type and amount of coverage. With that in mind, it is extremely important to compare the cost of burial insurance coverage with several different insurance companies.
The best way of doing this is to work in conjunction with an independent life insurance brokerage or agency that has access to many different life insurance carriers. This way, you will be able to quickly and easily compare policies, benefits, and premium prices of burial insurance coverage.
How To Find The Most Affordable Burial Insurance Policies
If you are in the process of looking for burial insurance, we can help. We work with many of the top life insurance carriers in the industry today, and we can assist you with finding the most affordable burial insurance policies for your needs. We can do this for you right over your computer, and without you having to meet in person with a life insurance agent. When you are ready to move forward, then just simply fill out the form on this page.
Should you find that you still have any additional questions about how to find affordable burial insurance policies – or even if, you just have a question regarding life insurance in general – then please feel free to contact us directly. We can be reached by phone, toll-free, by dialing 888-501-0530. We understand that it can be somewhat confusing trying to determine the best coverage for you. So, contact us today – we’re here to help.