While many people may not like to think about the topic, it is important to plan for the future. This includes putting together a plan for how large expenses will be paid – including a person’s funeral.
Today, the average cost of a funeral in the United States can range between $7,000 and $10,000. This is particularly the case when you factor in the actual memorial service itself, along with related costs such as the purchase of a burial plot and headstone (or alternatively, cremation and an urn), as well as flowers, transportation, preparation of the body, and the printing of notices for the funeral.
In some cases, these expenses will fall on the shoulders of a person’s loved ones. But unfortunately, families will often not be able to pay these costs without either draining some (or all) of their savings or worse yet, by putting these costs on a high-interest credit card and leaving themselves with a large monthly payment for years to come.
There is, however, a solution for quickly and easily paying off your funeral expenses, which can also provide peace of mind to family and loved ones. This includes the purchase of burial insurance coverage.
What Is Burial Insurance And How Does It Differ From Regular Life Insurance?
A burial insurance policy – also oftentimes referred to as funeral insurance or final expense insurance – is designed specifically to pay some or all of an individual’s funeral and related costs. Burial insurance is a type of life insurance coverage that, in return for the payment of a premium, will pay out death benefit proceeds to a named beneficiary. As with other types of life insurance, the proceeds that are received from burial insurance coverage will not be subject to income tax. This can allow the beneficiary to put 100 percent of the funds towards funeral and related expenses.
Typically, burial insurance is purchased by those who are in the age range of 50 to 85 – although there are some insurance companies that will offer burial insurance to applicants who are older.
The proceeds of a burial insurance policy are usually between $5,000 and $25,000. This can differ from regular life insurance in that the amount of coverage with burial insurance is often less. In addition to the anticipated price of one’s funeral, a burial insurance policyholder may also add some additional funds to the policy for the payment of other possible expenses that they may incur, such as the cost of uninsured end of life medical expenses, and / or the cost of hospice services.
Because burial insurance is often offered as a whole life insurance policy, the amount of the death benefit coverage, as well as the premium that is charged, will typically remain fixed and guaranteed, even as the policyholder increases in age, and regardless of if they contract an adverse health condition.
In fact, it can oftentimes be easier for an applicant for burial insurance to qualify for this coverage, as many burial insurance policies are usually a no medical exam type of coverage. This means as the name infers, that there will be no medical examination necessary for the applicant to qualify for the policy.
In some cases, there may not even be any medical information requested on a burial insurance application for coverage, which means that, as long as the premium is paid, the coverage will remain in force.
When you are shopping for the best burial insurance policy, there are several questions to ask before making an actual purchase. This is because, just like other products and services that you may purchase, not all burial insurance policies will be exactly alike.
With that in mind, be sure that you have a good understanding of the following:
- Can the policy’s premiums go up over time?
- Will there be a waiting period before the insurance is actually in force?
- How difficult will it be to qualify for the policy that you are considering?
- Will you need to undergo a medical exam as a part of the application process?
In getting these questions answered quickly and easily, it can typically be easier to work with an independent insurance brokerage that can help you to directly compare various burial insurance policies that are offered by different life insurance companies.
How To Pay For A Funeral Using Burial Insurance
When you own a burial insurance policy, the payment of funeral expenses can take place in several different ways. For example, in many cases, you may opt to name the funeral home or other funeral service provider as your burial insurance policy’s beneficiary. Going this route, your expenses can quickly be covered when the time comes, as the money will be available to the provider. (In this situation, if there are any burial policy proceeds that are left over from the payment of your funeral, then another beneficiary – such as a family member or other loved one – can be named as a contingent beneficiary).
You may also simply name a loved one as the beneficiary of the burial insurance. In doing so, this individual (or more than just one individual) will be able to use these funds in order to ensure that your wishes are taken care of. It may be helpful, when considering the policy beneficiary, to name an individual who may also work as the executor of your estate.
The proceeds of a burial insurance policy, just like other life insurance proceeds, are received income tax-free. This means that whoever you decide to name as your beneficiary will be able to use 100 percent of these funds for your funeral and related costs.
Where To Get The Best Burial Insurance Quotes
If you are in the process of seeking burial insurance, we can help you to find affordable premium quotes, as well as a policy that best fits your specific needs. This is because we work with multiple life insurance carriers that offer burial insurance coverage. So, we are able to go out into the marketplace and help you with comparing policies, benefits, and premium costs – and from there, you can determine which will be the best for you.
We can do this for you quickly and easily, and very conveniently, directly from your home computer. You will also not need to meet in person with a life insurance agent to obtain this information, or even to qualify for coverage. If you are ready to proceed, then please just simply fill out the form on this page.
Should you find that you have any additional questions or concerns with regard to paying for a funeral using burial insurance – or, even if you just have a question about 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 planning the expense of a funeral can be somewhat overwhelming. There are many variables to consider – and you want your loved ones to have the peace of mind in knowing that these costs will be covered. So, contact us today – we’re here to help.