Whether you call it final expense insurance, funeral insurance, or senior life insurance, all these plans or policies ensure that you’ve tied up your financial cost before leaving this world. Beyond a selling aspect, burial insurance comprises a complete life insurance form.
However, when it comes to choosing the right burial insurance plan, preneed insurance and final expense insurance are the two prominent plans that come under discussion. It is because their focus on the area is the same: “final expenses.” The two options are available for funeral planning ahead of time, but they have some major differences.
If you are looking for the final expense insurance that can save your loved ones from going through the decision-making process during an emotional phase, we can help you make the smart choice.
We have covered the two options burial insurance and preened insurance.
What is Burial Insurance?
Burial insurance is typically a life insurance policy that helps surviving or suffering families pay for the burial and funeral of their loved one who passes away. Funeral homes and insurance companies market burial insurance to seniors as a crucial policy they must invest in to protect their families from hefty expenses after they depart from the world.
It is a form of life insurance policy that comes with a death benefit that a decease’s beneficiaries can receive and use for a funeral. Generally, burial insurance is an affordable policy that doesn’t require any medical exam. It often doesn’t offer high value per premium dollar as compared to large life insurance policies.
What is Preneed Insurance?
Preneed insurance also covers the cost of funeral services, including cremation or burial. It gives families pre-arranged funerals to make things easier for them. To get the service, people have to work with funeral homes directly, making it different from other insurance types. They will price all the costs such as cemetery plot, burial, casket, and then an insurance plan of a deceased person pays for the expenses.
Burial vs. Preneed Insurance
Prepaid funerals and burial insurance have some major differences that you must know before you choose. Note that you can only purchase a preneed insurance plan from a funeral home and need to pay a preset price to it directly.
Generally, funeral homes don’t offer specific benefits. The policy comes with limited coverage and doesn’t offer any price shopping. In this option, only funeral homes have the policy benefit, meaning the death benefit goes to a funeral home, and you may or may not get a chance to build cash value.
Burial insurance, on the other hand, is more flexible as you can use it anywhere in the world. It offers a plethora of additional benefits that you may receive as a policy rider. One of the defining attributes of burial insurance is that you can choose your beneficiary who will receive the money directly after you pass away. You can even divide the policy benefits among different people. With this type of final expense insurance, you can build cash value or withdraw the money as a policy loan.
Overall, burial insurance has multiple death benefits that you don’t get in preneed insurance, making it a better option.
For all your final expense insurance-related questions, you can visit Senior Life Services and speak to our licensed agent.