Speak with an experienced advisor! People purchase life insurance for any number of reasons, including for paying off debts, ensuring that loved ones will be able to continue making their ongoing living expenses or even to donate a nice sum of money to a favorite charity.
While all situations and needs are different, there is typically one thing that everyone has in common. That is the fact that you will likely have at least some amount of final expenses in the future.
Although many people believe that final expenses include the cost of a funeral and memorial service, the reality is that these are only part of the total, as final expenses can actually encompass a wide variety of other items, such as a burial plot, a headstone, flowers and transportation for the funeral service, and even the printing of the funeral announcement cards. All told, the cost of final expenses today is just under $10,000 on average – an amount that many loved ones and survivors may not readily have on hand if or when the time comes.
In many cases, the bills that are due from a decedent’s final days may also include uninsured hospital or other medical expenses, the cost of hospice care, and a long list of other unpaid debts.
How Would Your Survivors Pay For Your Final Expenses?
If the unthinkable occurred tomorrow, how would your survivors pay your final expenses? For many families, the bills that come due for a loved one’s funeral will often have to be paid by dipping into savings – or worse, they may have to be put on credit. This, in turn, can lead to many years of payments, typically at a high-interest rate.
The good news is that there are ways to help protect those you care about so that they are not personally responsible for paying these high costs. One way to do so is through the purchase of final expense insurance.
Final expense coverage – also often referred to as burial insurance or funeral insurance – is a type of life insurance policy that is purchased for the purpose of paying for a person’s funeral, as well as the other related costs.
This type of coverage is typically purchased by those who are age 50 and over, with a benefit amount that will usually range between $5,000 to $25,000. Although there are many insurance carriers that will allow the purchase of a higher amount of coverage.
How Much Insurance Do You Need?
Because all situations are different, it is important to determine the amount of insurance coverage that you may need. Even if you already have life insurance through your employer, or even through a personally owned policy, it may not be enough to cover all of the things that you’ll need.
One of the best ways to determine the amount of a funeral in your area – or in the area where you intend for your final interment – is to contact several local funeral homes and inquire as to their costs, as well as what those costs include.
You may also wish to add an additional amount of coverage to the policy if you have any outstanding loans or other debts that would fall to your survivors in the event of your passing. Doing so can help to ensure that loved ones will not be saddled with additional bills.
How Does Burial Insurance Work?
While there are some term insurance options – where the insured is covered only by a death benefit, without any cash value or investment build-up – for burial insurance, in many instances, this is a permanent form of coverage.
This means that the policy will provide the insured with death benefit coverage, along with a cash value component. As a whole life form of insurance, burial coverage will typically have the amount of the premium locked in for the remainder of the insured’s lifetime – regardless of increasing age and / or the contracting of health issues in the future.
The cash that is in the cash-value component of the policy is allowed to grow and compound on a tax-deferred basis. This means that there will be no tax due on the gain of the funds, unless or until the money has been withdrawn.
Will You Qualify For Burial Insurance?
In most cases, an applicant for burial insurance will be able to qualify – even if he or she has an adverse health condition. This is because many burial insurance policies will not require the applicant for coverage to undergo a medical examination as a part of the underwriting approval process.
In some instances, depending on the policy that you are applying for, you may not even be required to answer any medical or health related questions. Because of this, burial insurance can provide the coverage that is needed for paying final expenses, yet without the worry of not qualifying for the policy.
Because of the ability to more easily qualify for coverage, burial insurance can also sometimes provide an alternative to regular, medically underwritten life insurance – even for those who will use the policy proceeds for other needs.
Where To Get The Best Quotes On Burial Life Insurance
When seeking the best quotes on burial insurance, working with an independent insurance brokerage that has access to more than just one single policy or company for burial coverage can yield you the best results. Doing so will allow you to more directly compare policies, as well as premiums.
If you are ready to move forward, we can help. We work with many of the top burial insurance providers in the industry, and we can get you all of the details that you need. When you are ready to move forward, just fill out the form on this page. We can also answer any questions for you, by calling us direct at 888-501-0530.
Burial insurance can provide you and your loved ones the peace of mind in knowing that they will not have to pay exorbitant bills. Having the right amount of coverage, however, is key. So, contact us today – we’re here to help.
