Burial insurance exists to cover some, or all, of the costs that can come with the end-of-life. If you’re considering purchasing a burial insurance policy, know that it’s an excellent option to take the financial pressure off your family.
The majority of people purchasing burial insurance are seniors. This is because that’s typically the time when end-of-life preparation and costs are being thought about. Most young adults aren’t thinking about burial insurance or making preparations of that kind.
Being young will not stop you from purchasing a burial insurance policy from most providers. In general, insurance providers will give policies to young adults. In fact, purchasing a burial insurance policy young may lower the cost. When buying a policy young, you’ll have smaller premiums and are likely to get a better deal.
Why buy a policy young?
As a young adult, you may or may not have dependents. If you do, burial insurance is an excellent way to cover the costs that your funeral could have. Making sure that your burial and funeral aren’t a financial burden on family is one of the biggest reasons why many purchase this type of insurance policy.
Even if you don’t have dependents, you should still consider a burial insurance policy.
How burial insurance policies function
Burial insurance is fairly typical in the way it works. The consumer chooses a plan, pays a monthly premium based on their age, sex, health, and policy amount. They pay this monthly premium for the rest of their life and is the cost that’s required to keep their policy. After the policyholder passes away, their beneficiary receives the death benefit. The death benefit is the amount of money that the policy was worth. Burial insurance policies have smaller death benefits than regular life insurance.
Burial insurance policies range from $2,000 to $50,000 at the maximum. This means that after the policyholder passes away, their beneficiaries will receive between $2,000 and $50,000 depending on their policy amount. The more modest death benefit means that the monthly premiums are more affordable for the average person.
While it was meant to cover costs associated with end-of-life, burial insurance is highly flexible. The policy can cover whatever cost the beneficiaries feel is necessary. These can include the policyholder’s health expenses, funeral costs, outstanding bills like mortgages or credit card debt, etc. The beneficiaries can also choose to spend the money on more exciting options, like vacations or shopping. People normally purchase a burial policy to take care of their loved ones after their death. Therefore, burial insurance policies rarely have restrictions.
Ready to purchase a policy?
Thinking about burial insurance can be painful. However, it’s an important step in providing for the future and ensuring that necessary funds are set aside. Burial insurance is affordable and an excellent option for most. If you’re ready to begin looking at policies, let us know. We can schedule a consultation and put you in touch with one of our insurance professionals.