Burial and life insurance work in similar ways—both require monthly premium payments, and both have a payout paid to a beneficiary once the policyholder passes away. However, there are critical differences between these plans that distinguish them from one another.
One policy is not really “better” than the other. To say as much would ignore the benefits of each depending on your personal life and circumstances, we will look at below.
What Is Life Insurance?
There are many different types of life insurance—whole life, term, and universal, to name a few. Each of these plans has its quirks, but in general, it is considered a long-term financial security measure.
This means that it is meant to cover outstanding debts and payments once the policyholder has passed away—the death benefit goes to the designated beneficiary and is used to pay off debts such as:
- Funeral and Burial Expenses
- College Tuition
- Day-to-Day Bills and Expenses
- Child and/or Dependent Care
- Medical Expenses
- Mortgage and Estate Planning
- Co-Signed Debts
- Charitable Donations
The payout for life insurance can range anywhere from $50,000 to the hundreds of thousands or more if you so choose.
What Is Burial Insurance?
Burial insurance, on the other hand, covers short-term, final expenses. Typically, this means the cost of the policyholder’s funeral and a few other expenses such as medical fees, outstanding credit card debt, and other unpaid bills.
The payout for the average burial insurance policy can range anywhere from $5,000 to $50,000.
Burial Insurance Is Easier to Qualify For…
The payout for burial insurance is much less than life insurance. However, this isn’t without reason—burial insurance is significantly easier to qualify for than life insurance.
Your current or past health condition is barely (if at all) considered when applying for one of these policies. Your age and lifestyle (such as smoking and drinking habits) are considered, but only raise your monthly premium, not disqualify you completely.
Life Insurance Is Not
Life insurance policies take your age and lifestyle into consideration when determining your premium as well—however, these qualifiers are far more strict than with a burial plan.
To enroll in any life insurance plan, you must answer a medical questionnaire and have an examination. You’ll be asked about your health history, underlying conditions, and more—and, if you answer “yes” to any of these questions, you will likely not be considered for coverage.
You must also have a medical exam—if the doctor determines that your current health is uninsurable, you will be rejected coverage.
Most Insurance Companies are Hard to Work with… Senior Life Services Is Not!
The key takeaway? Life insurance is great if you’re young and in great health; burial insurance is better if you’re not. For most people, the cost and easy enrollment of burial insurance make it the superior option to life insurance.
Now that you know which type of insurance works best for you, how do you find a provider? With so many scams and difficulties, finding the right plan can seem impossible. If you want to work with a company that offers fast, FREE insurance quotes, call Senior Life Services at (800) 548-3249.