Burial insurance is a type of whole life insurance policy intended to cover funeral and burial costs. It generally has minimal qualifications and is most commonly referred to as a guaranteed issue. The circumstances surrounding a person’s application process generally help the insurance company in determining what amount the person qualifies for — but the applicant should qualify for some sort of amount, regardless.
When determining what policy to purchase, applicants should review their eligibility, coverage options, and potential costs. This also includes understanding what the minimum available amount is, and what a person’s options are in regards to this.
Is There a Minimum Amount?
Burial insurance offers smaller amounts than other types of whole life insurance policies. The maximum amounts are usually $10,000, but is there a minimum? The minimum amounts that an insurer typically issues can depend on the company. Some carriers go as low as $1,000 while others may go as low as $2,000 to $5,000. What an insurer offers can also depend on what state the person is in.
What Should You Do?
When reviewing burial insurance, it’s important to shop around to better understand what options are available. Different companies have different processes that are used to determine eligibility and the available amounts. Keep in mind, however, that the cost of the plan should also be taken into consideration when you want to make a smart decision. A person could also just as easily choose a burial insurance policy that gives them the most bang for their buck and then simply focus on increasing their savings.
Each person’s circumstances are different, though, so others may decide to buy multiple policies if their situation calls for it. Individuals may benefit from contacting a licensed agent to help them determine what’s best for them if they should get insurance, what insurance to get, etc. Regardless, this process should be based on what your goals and needs are to decrease the financial burden on their loved ones after they pass away.
Looking For A Policy? We Can Help
Burial insurance is a type of whole life insurance, which involves policyholders paying premiums to maintain it. A person’s circumstances may affect the amount of coverage that’s necessary or that they qualify for. Insurers typically have “minimum” amounts they issue, which can range from $1,000 to $5,000 depending on the company, a person’s situation, and the state in which they live.
If you need help determining what the best option might be or need more information about burial policies, give us a call at 800-548-3249.