It’s the rare person who wants to think about his or her own mortality. But despite this desire to avoid thinking about the unpleasant, especially when you have elderly family members, it’s crucial that you take the time to have this honest conversation with the adult members of your family. Taking the time to prepare for the worst can help your loved ones in so many ways, in the untimely event of your death.
Let’s face it, it’s not cheap to plan for a funeral. The costs add up quickly, with the headstones, services, and other aspects of a burial overwhelming even the most financially secure of families.
Burial costs can leave your family members facing a rather large financial struggle, and this is a burden that no one wants to inflict on our loved ones.
Burial insurance plans will have a cost associated with them, but when you consider that plan coverage can range from $5,000 to exceed $20,000, it’s almost selfish not to get a plan going for yourself. A funeral, all on its own, can cost in excess of $10,000.
So, what is burial insurance anyway?
A burial insurance plan generally refers to a “whole life” insurance plan. It offers a death benefit that can range from $5,000 to $25,000. The goal of burial insurance is to help cover those end of life expenses that happen, without putting a harsh strain on the finances of your loved ones.
The term burial insurance can be a little bit misleading, as these policies can actually cover costs that are not associated with the burial itself. The terms of your policy, which could differ between issuing companies, will detail all of the coverage that you can expect.
Can I qualify for burial insurance?
There is no health exam needed in order to qualify for a burial insurance policy. You may be asked some key questions that will assure the company that you are not actually terminally ill, but the truth is that most people don’t have any issues qualifying for their policies.
Do I need burial insurance if I have life insurance?
Yes, you do. While life insurance policies can certainly help to cover a lot of expenses, it could prove difficult to get a payout in time to help cover burial costs, and it’s also worth pointing out that funeral and burial costs are not often factored into life insurance plans. Burial insurance is a great option for the person who doesn’t want his or her family to have to pay heavily out of pocket for their funeral expenses.
How much does burial insurance cost?
Premiums for burial insurance policies are collected weekly, or monthly. It’s generally a small amount each month, often no more than $10, depending on the type of policy that you get. Some policies can be had for as low as $3 a week.
Who gets the benefits payout?
There is a common misconception that the funeral directors get the payout upon the death of the policy holder. The truth is that the beneficiary named on the burial insurance policy will be the one who gets the money. This is most often a named family member.
Insurance companies generally don’t like to issue policies that do not name family members as beneficiaries. After the policy has been in effect however for over a year, you can name anyone as the beneficiary of the policy.
Do some research into the companies that you are considering taking up a burial insurance policy with. They should have been in business for several years, and they should have a good reputation in the industry. When you get started with setting up your policy be sure that you get adequate coverage so that your family members will be able to have one less financial concern to worry about when they are mourning the loss of someone who was a beloved member of the family.