Burial insurance, or final expense insurance, is undeniably a helpful tool for families and relatives paying for a deceased family member. It enables loved ones of the departed person to pay for the final expenses that may include memorial service, urn, headstone, and burial.
Essentially burial insurance is a form of life insurance policy, but it comes with a lower benefit amount than the conventional life insurance policy. While many people usually purchase it to cover all the funeral arrangements, some use it to pay the debts, including credit card bills, medical bills, personal loans, and mortgage loans.
However, to make the most of a burial insurance policy, you must have sufficient knowledge of what it covers.
Before we delve into the discussion of burial insurance policy coverage, let’s understand its basics, pros, and process.
Burial Insurance Policy-All You Need to Know
Burial insurance coverage is suitable for people ages 60 to 80. Most companies or insurers offer plans to individuals as young as thirty days of age. Burial insurance policies are usually a form of life insurance plans. The type of insurance plan doesn’t have any term to it. Many insurers consider paid-up at the age of 100 in several cases.
Know that burial insurance policies cost less than preneed insurance. It features the beneficiary of the deceased one’s choice, unlike preneed insurance. The death benefit in burial insurance ranges from $5000 to $50,000. Anyone can buy a burial insurance policy after responding to a few health-related questions on the form, without any medical exam. Policyholders can pay the premiums weekly or monthly.
How does a Burial Insurance Policy Work
A burial insurance policy provides benefits to a certain limit. It is permanent insurance that beneficiaries can cash and use it for funeral arrangements of their loved one (policyholder). They are generally easy to set up, and people can purchase it online or via telephone. Many insurers target seniors as they are the higher risk group.
What Does a Burial Insurance Policy Cover
As mentioned above, burial insurance, final expense insurance, or funeral insurance can help you cover your final arrangements. Typically, it covers the costs of funeral expenses such as
- Transportation of the dead body
- Memorial service
- Headstone and flowers
- Urn or casket
- Burial Plot
- Cost of filling and digging a grave
- Cremation or burial services
A feature that differentiates it from preneed or other end-of-life insurance policies is its cash value builds up. That means if the decease’s family members are left with some money after performing all funeral services, they can use it for paying other expenses such as debts, legal and medical bills, and loans the departed person has left behind.
In conclusion, preplanning your funeral arrangements is one way to help your loved ones keep up with your passing’s financial burdens. It almost covers everything from burial arrangements to memorial services. This way, your family will have everything arranged and in place.
Thus, to get more information, you can contact Senior Life Services to talk to our licensed representatives.