How Much Does Burial Insurance Really Cost?
Obviously, a popular question we get is, “How much does burial insurance cost?”
An average burial insurance policy for a healthy 50-year old seeking $10,000 in coverage can be between $25 and $40. Premiums for burial insurance will vary greatly depending on sex, health, benefits you seek, coverage, and more.
If you have significant health conditions or are over the age of 70, obviously your premium could be a little higher.
Cost seems to always be the detail people are hung up on but it should not be the number one factor you focus on. What you should be paying attention to is the amount of expenses you would be leaving behind for your family and loved ones if you do not have a policy.
How much does burial insurance cost isn’t the question…
Because of the rising costs of healthcare, funeral costs, and amount of general debt in our country, a burial insurance policy can greatly benefit your family.
According to a study conducted by Credit.com, the average amount of debt at death in the United States is $61,554. Who is responsible for that when you pass away? Creditors normally take it out of your estate, leaving little behind for your family. And depending on where you live, your spouse could be responsible for property debts.
If your estate can’t cover a given debt, a creditor usually has the right to seize whatever the loan paid for unless an heir can afford to keep making payments. That includes your house and your car.
So, how much does burial insurance cost isn’t what’s important in this equation. It provides peace of mind that you aren’t leaving behind a mess of financial problems for your loved ones.
How much does a funeral cost?
An average funeral with viewing and a burial is now close to $8,000. A death can cost your loved ones thousands of dollars, often due upfront. Cremations can be a little cheaper depending on what your final wishes are, but still can cost thousands of dollars.
Pre-paying may be an attractive option for some. But, you need to make certain you understand how they work. Often, there is little flexibility with options and money and are not any cheaper. burial insurance funds are fully flexible because 100% of the benefit goes to your beneficiary and there’s no contingency on how the money is spent. You can either specify in a will how you would like the funds spent or you can leave it entirely up to them.
Do I need burial insurance?
If you’re over 40 and you think you’re going to need money to cover your funeral and burial, then you could benefit from a burial insurance policy.
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