What is Burial Insurance?
A burial insurance policy is a type of life insurance that is meant to help your surviving family pay for your funeral and burial when you pass away. It is also known as final expense insurance or funeral insurance. Its need arises from the fact that even the most basic funerals are rising in price by thousands of dollars.
What is burial insurance?
Also known as final expense insurance, burial insurance comes along with a smaller benefit, typically no more than $25,000. This is because they are not meant to cover a loss of income like more common life insurance products. They are simply meant to cover funeral, burial costs, and some leftover bills. The market for burial insurance is 40-year-olds and older.
As you get older and begin to pay off larger debts like mortgages and vehicles, it becomes less necessary to have larger benefit term life insurance that may carry a higher premium. So, a smaller benefit policy like final expense can be more affordable and appropriate for your needs. It’s also much easier to qualify for those in poor health because there is no medical exam involved.
Do I need burial insurance?
Truly, only you can answer this question. Do you have life insurance products that are going to pay off all remaining debts? After the benefit takes care of that, do you have enough left over to pay for your funeral and burial?
Costs vary by state, but the national average for a funeral is nearing $10,000. So, if you do not have enough life insurance you could be leaving some hefty bills behind for your family to pay.
Does Social Security have a death benefit?
Yes, Social Security does pay a small sum to your family once you pass away. But, it’s only $255. Not nearly enough to pay for a funeral or burial.
How much is a burial insurance policy?
Your premium is going to be dependent on a number of factors, so it will require a quote — which we offer for free and quickly. However, it is often $50 to $150 per month depending on age, gender, and benefit amount.
It is much more flexible than pre-paying for a funeral and could cost less in the long run. For one, the beneficiary with burial insurance is going to be your family instead of a funeral home. It also allows for you to be able to change your mind as to where you are buried or which funeral home takes care of your services. The death benefit for a burial insurance policy is also free to use as you wish in case some need arises.
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