If there’s one thing that’s certain in life, it’s that one day we’ll no longer be around. As morbid as it might seem to think about, preparing for your death can be one of the greatest gifts you can give your loved ones, and many choose to do that preparation by getting themselves burial insurance.
Having burial insurance in places means that when you pass away, the fees are taken care of by your policy, including the ceremony, and burial costs, just to name a few. People can choose varying amounts to suit the style of burial they need, and for many, it’s just one of those things that they’ve decided to do in order to make their deaths less stressful on their families and loved ones.
These insurance policies are relatively straightforward, but for some, they’re unsure about when the right time is to invest or how much they should be covered for. We’re here to answer your questions about burial insurance, the costs and policies involved, and how it can benefit those in your life, giving you the opportunity to decide for yourself whether it’s a worthwhile investment for you.
What is Burial Insurance?
Put simply, burial insurance is a form of life insurance that pays out when you die. It may sound morbid to plan for or even discuss, but for many people, the thought of their family having to pay thousands for the cost of their funeral service is something that they can’t imagine.
Burial insurance policies range from around $5,000 to $25,000 but can be more or less depending on your insurer. Their sole purpose is to cover costs that eventuate from your death and relate to funeral services that follow. Once you do pass away, the insurance company pays this lump sum to your family members or nominated beneficiary and they can then use the money to pay for any costs.
When Should You Invest in Burial Insurance?
One of the trickiest things to consider with burial insurance is when is the right time to get it? You might assume that only the elderly would have a need for such a thing, however, more and more people are covering themselves with these policies at a younger age. Those with families of their own could particularly benefit from having a policy, although burial insurance for seniors is also quite popular.
Some insurers will offer burial insurance as a package with their other policies, like life insurance, with the whole amount being paid out upon your death. They can cover just one person or an entire family, so some might choose to take out extra coverage so that all of their loved ones will be protected by burial insurance.
What are Burial Insurance Policies?
Burial insurance policies usually don’t require a lot of checks in order to begin, however, there may be an age limit in place. You’ll also be asked to swear that you currently aren’t ill or that you don’t reside in a nursing home, as this can result in larger premiums or a refusal of policy altogether. There are a few different types of policies you can choose from, including:
Preneed Funeral Insurance
This may be linked to a funeral service provider and paid in installments or as monthly premiums. It also allows you to choose details about how your service will run.
Final Expense Insurance
Consisting of a term or permanent life insurance policy, this one isn’t paid out directly to a service and gives your loved ones a little more freedom for how they can allocate the money.
These can sometimes be a term life insurance policy where the benefits are paid directly to a beneficiary in case of death. They usually have lower death benefits of around $10,000 to cover the costs of a standard burial and are the smartest option.
The Costs of Burial Insurance
In terms of burial insurance cost, the premiums are usually quite low and start at just a couple of dollars a week. You can choose the amount of coverage just as you do with all other types of insurance, so before investing it might be best to have something in mind about what type of funeral service you’d like for yourself.
Some people might prefer to pre-pay for their arrangements ahead of time so that their funeral can be exactly as they wished, however, for most everyday Americans, it would be far too expensive to do in one purchase. For this reason, burial insurance is a smart and long-term investment that will ultimately take some strain away from your loved ones.
According to recent numbers, the average funeral and burial in the United States cost around $11,000. When your family is dealing with grief and vulnerability, having these funds already put aside can take some of the burden away from them, and that is why many choose to invest in a policy for themselves.
Is Burial Insurance Right for you?
The decision to take out an insurance policy is a personal one that needs to be weighed up with all sides considered. Although younger people might not believe it’s a necessity, those with families might want to do anything they can to ensure their family doesn’t have any unexpected costs should the worst happen.
Burial insurance policies are so varied depending on who the provider is, and there are can be many finer details that you need to consider. Before signing up for any policy ensure that you’ve done extensive research and understood the fine print so that you don’t end up investing in a policy that won’t be there for your loved ones when they need it most.