Expenses related to funerals are sometimes unexpected for families. Therefore, it’s important to plan for your funeral. By doing so, your loved ones will be less stressed. Funeral insurance is an invaluable gift to your family in the event of your death. Funeral insurance can cover cremation, a funeral service, and transportation for immediate family members. This insurance is usually available without a medical examination. Let’s review a few facts about funeral insurance and how they work.
What Do You Need To Know Before Buying Funeral Insurance?
Funeral insurance is also known as final expense insurance or burial insurance. It is a type of insurance that provides financial support to your family in the event of your death. It also provides peace of mind to those who remain behind by providing them with the peace of mind that comes with knowing they are protected. Funeral insurance is reasonably priced and can cover amounts up to $50,000.
Funeral insurance covers funeral expenses and possibly some miscellaneous expenses if you die while still alive. Funeral insurance plans are available in various forms, including simple coverage of funeral expenses to comprehensive life insurance that includes funeral expenses. Before purchasing a funeral insurance policy, consider whether you already have coverage for funeral expenses. Here are a few other things to be aware of before choosing funeral insurance.
- Research funeral insurance companies and compare prices. Many funeral insurance policies offer a “free look” period.
- Funeral insurance premiums can range from $30 per month to $150 per month, depending on the policyholder’s age, health, and coverage requirements.
- Funeral insurance policies vary in coverage and premiums, and coverage terminates if premiums are not paid.
- When purchasing a funeral insurance policy, understand the terms and conditions and the cancellation penalties.
- Burial insurance is necessary for many families, and it is one of the most selfless acts a person can perform.
- Final expense insurance premiums are heavily influenced by factors such as age and health. If you have serious health issues, you may need a medical examination. The insurance company determines the monthly premiums for burial insurance based on the level of risk you are considering. Insurance companies will conduct a prescription drug background check if you give permission.
Burial insurance can be difficult to obtain, but it is worth the effort. If you have a burial insurance policy, you may discover that it has a waiting period. This waiting period can last for a long time, depending on the circumstances. Final expense insurance can help you and your family avoid the financial burden of paying for your death and burial. Regardless of how you die, your loved ones will be grateful if you plan and purchase a policy that covers your final expenses.
Are funeral insurance policies worth it?
Final expense insurance is a legitimate alternative to burial expenses. A final expense policy can benefit anyone, but you must carefully examine each plan to determine the best one for your needs. Final expense insurance policies are available in two varieties: term and permanent. A permanent policy provides all of the benefits of a term policy and the ability to accumulate cash value. If you are over 80, you may want to consider a final expense insurance policy designed for senior citizens.
If you do not have final expense life insurance, you and your loved ones will be on the hook for all of the costs associated with death and burial, which can easily add up to a five-figure sum of money.
Other insurances to consider
Whole life insurance is superior to final expense insurance because it covers many expenses, including living expenses. It also provides the option of borrowing money against the policy. Life insurance policies can have waiting periods and pre-existing condition clauses. Final and whole life insurance are not the only types of insurance available for end-of-life expenses. Term life insurance is another option to consider. It is affordable and can be a larger policy than burial insurance. Whole life insurance policies are available without a medical exam, and the policy pays out the full amount of the policy when the insured person dies.
Key takeaway:
If you do not already have a life insurance policy, you should consider purchasing burial insurance to cover your final expenses. Insurance companies such as these offer policies that pay out an immediate death benefit, meaning there are no two-year waiting periods before the policy pays out. Make sure you invest in burial insurance before it is too late to cover your final expenses.