Life insurance isn’t the right choice for everyone for the following reasons:
- What if you don’t qualify for a life insurance policy?
- Or, what if you don’t need hundreds of thousands of dollars in coverage?
- Or, what if you’re concerned about outliving your coverage?
Given these scenarios, it may be fitting to consider buying a Burial Insurance or Final Expense Insurance policy. Let’s look at some reasons to buy burial insurance.
You currently have a grave disease or have limited insurance needs
Life-threatening conditions may play a crucial role if or when you’re eligible for traditional insurance. Let’s say you just suffered a heart attack or was diagnosed with breast cancer. Each of these factors may diminish your chances of qualification for a fully underwritten life insurance policy.
Time and time again, we have clients who tell us, “I just need enough life insurance to bury me.” In this case, you may opt for a simplified issue or guaranteed issue life insurance. These policies don’t require a medical examination, with many only asking a few questions and some that won’t ask any medical questions at all.
You don’t want a life insurance policy that could expire before you pass on
Some people find the idea of purchasing a term life policy that could end at a specific point in time a total rip off. For these individuals, they want to make sure that they don’t want to outlive their life insurance. With a burial insurance policy, there is no expiration or renewal date. Burial insurance is typically purchased by seniors, as most burial policies have an eligibility requirement of age 50 and older.
You don’t want to bother anyone with any burial expenditure
This is good if you have family members who are not dependent on you financially and are only looking to cover the burial expense. Hence, buying a $10,000 or $15,000 burial insurance policy with a fixed premium that will never terminate is the perfect option, especially when it can be procured without undergoing medical underwriting or medical queries whatsoever.
You don’t want to undergo a medical exam or answer any medical questions
There are numerous justifications for avoiding medical exams or answering any medical questions to qualify for burial insurance. To many people, the concept of qualifying for a smaller burial or final expense insurance plan quickly – even over the phone – without having to pass through weeks of underwriting makes this option an attractive prospect.
You have already been turned down for traditional term life insurance coverage
In this situation, if your application for traditional term life insurance had been turned down, buying a burial insurance policy might be the better alternative.
The reasons for considering funeral insurance aren’t entirely financial. Invisible factors like time, effort, stress, peace of mind, etc., can play a significant role in finding the right plan for you.
Pros and cons of burial insurance
Burial Insurance is a Life Insurance Policy that can help you and the people who outlive you prepare for funeral overheads. A lump sum will be paid out to the beneficiaries to help them cover funeral expenses that will arise.
Failure to prepare for your funeral costs effectively ensures that your demise spells economic doom for the people who survive you. Procuring funeral insurance can help you take care of responsibilities impinged on them without stress.
Here are how the pros and cons compare:
The Pros: Comparing your options is a way to determine if a Burial Policy will be suitable for you. It can also allow you to know if you will be able to afford premiums over the life of the policy. Some of the perks that come with burial insurance are:
- Affordable for people on a budget.
- Provides peace of mind for the people who survive you.
- Coverage begins immediately.
- You get to select the beneficiaries who receive the payout.
- The beneficiaries can use the lump sum to cater for a diverse range of urgent expenses.
- Payout is usually done within days when the beneficiary lodges a death claim. You will need to present proof in the form of a certified death certificate to the insurer.
- Premiums depend on your situation to make sure that you are sufficiently covered.
- Accumulated cash value can be used while the policy is still in force.
The Cons: It is crucial to weigh options to determine the most suitable policy for your needs, as not all policies are created equally. Some of the drawbacks to having a Burial Insurance plan are:
- Low payout compared to life insurance, with the typical payout being between $2,000 and $50,000.
- If there are no health questions, you will not be entitled to a discount if you’re in good health.
- Depending on your insurance carrier, you may not qualify for cover if your death occurs while traveling outside the country or to a blacklisted country.
- Premiums may become costlier than the funeral cost.
The best way to decide if burial insurance is best for you is to do your research. Contact us today at 800-548-3249 to find out how you can structure your Final Expense Insurance contract.