Burial insurance, also called final expense insurance, can help save your family financial hardship after you pass. Burial insurance is a type of small life insurance policy that is meant to cover costs associated with the policy holder’s end-of-life expenses. In reality, burial insurance is a very flexible policy that allows the beneficiaries to spend the death benefit on whatever they choose. There are many reasons why you should consider burial insurance. Take a look at our top five reasons below.
1) It’s Affordable
Final expense insurance is a smaller type of life insurance policy. Because it does not cover as large a death benefit – the term for what your loved ones get when you pass away – your monthly premiums are not nearly as high as they would be with life insurance. For example, an average nonsmoker age 55 who gets a term life insurance policy can expect to pay around $190. Those rates significantly increase in just five years, with the average 60-year-old paying $318. In contrast, the average 55-year-old nonsmoker can expect to pay about $40 per month.
Of course, part of what makes burial insurance so much more affordable than life insurance is its lower death benefit. However, that death benefit can get your family what they need. Take a look at the average cost of burial insurance by age and risk factor below.
People Age 55
Non-smokers w/ No Waiting Period:
$5,000: $17.48
$10,000: $31.75
$15,000: $46.02
$20,000: $60.29
People Age 65
Non-smokers w/ No Waiting Period:
$5,000: $25.80
$10,000: $48.39
$15,000: $70.98
$20,000: $93.57
People Age 75
Non-smokers w/ No Waiting Period:
$5,000: $44.59
$10,000: $85.97
$15,000: $127.35
$20,000: $239.55
People Age 85
Non-smokers w/ No Waiting Period:
$5,000: $ 81.37
$10,000: $159.53
$15,000: $237.69
$20,000: $315.85
2) It Offers Robust Coverage
Burial insurance has a small death benefit when compared to life insurance plans. That benefit ranges anywhere from $2,000 to $50,000 maximum. Even though this benefit seems small compared to the massive payouts of whole life insurance policies, it still covers what most families need to help pay their loved ones’ end of life costs. This smaller coverage option also makes it more affordable than life insurance, as demonstrated above. Burial insurance is just big enough to cover your family’s needs, and just small enough, the policies are more affordable for more people.
3) It Covers Anything
Burial insurance was invented to help people cover out-of-pocket expenses associated with the death of the policyholder. Traditionally, this included costs like funeral costs, medical debt, unpaid mortgages, etc. In reality, people can use burial insurance policies for whatever they wish. It could be something new for the entire family, a vacation, or paying off the policyholder’s debt. There are very few restrictions on how beneficiaries are allowed to spend the death benefit. This freedom enables families to use the death benefit for their unique needs.
4) Your Health Isn’t a Factor
Beyond the expensive monthly premiums, life insurance is so difficult for many people to purchase because many people cannot qualify due to their health. If you’re not in good health, life insurance is often tough to get approved for. Burial insurance, on the other hand, has multiple levels of risk. It makes it so that people who have health problems can still purchase coverage for their loved ones.
There are four different kinds of burial insurance: level, graded, modified, and guaranteed issue. People who qualify for the level plan have the best health. People who are best suited for graded plans have minor health problems. People who choose modified plans have serious health problems. Guaranteed issue plans are special types of plans in which the applicant is guaranteed to get the policy that they apply to regardless of their health. Of course, the plan’s cost increases with the risk the insurance companies accept when they accept sicker clients.
However, at least burial insurance companies offer programs to those with health problems. Many whole life insurance companies don’t offer plans to people with major health issues. Keep in mind that these are broad categories, and the exact details of the plans depend on the plan and the company.
5) It Has No Term Limit
A term limit is when a certain policy is only good for a certain amount of time. For example, term “limit” life insurance policies often have a term limit of 25 years. So, if you purchase the policy, it is only suitable for 25 years. If you do not pass away within this time frame, your family does not receive the death benefit. Burial insurance policies, in contrast, do not have term limits.
There are many upsides to purchasing burial insurance. It’s a more affordable option that still allows your family peace of mind when it comes to financial matters when you are no longer there to support them. It has no term limit, so you can rest easy knowing that your loved ones will be taken care of regardless of timing. It’s flexible insurance that can cover anything they choose.
Choose Senior Life Services
Final expense insurance is an excellent option for anyone worried about how their family will cover funeral expenses and outstanding bills once they are gone. If you’d like to learn more about purchasing a policy, call (800) 548-3249 today.