What is burial insurance?
You buy insurance to protect yourself and manage risk. Car, homeowners, health, and life insurance are all products that help safeguard your finances.
Burial insurance is a basic type of life insurance. It’s designed to safeguard your finances and those of your loved ones at your passing by covering costs associated with your funeral or cremation. Also known as funeral insurance or final expense insurance, these policies are more affordable and easier to qualify for than other life insurance products.
As expenses and funeral costs continue to rise, so does the need for funeral insurance. That’s why it’s important to understand what a burial policy covers, who needs it, and how to buy a final expense insurance product that’s right for you.
What You Need to Know About Funeral Insurance
Thinking about and planning for your death is difficult, but consider how it will protect your loved ones- emotionally and financially. Making funeral plans and deciding how to fund them up front prevents your family from going into debt when you eventually pass away.
Burial insurance is a final expense life insurance policy covering funeral services and related costs at the time of death. Final expenses include the funeral home’s service and preparation fees, the cost of staff and facilities for viewings, and costs for burial or cremation. Burial insurance can also be used to pay for cemetery plots and headstones or extra expenses such as flowers and wreaths.
With average funeral costs* between $7,000 and $9,000, your beneficiary can use burial insurance to pay for your funeral. But they might also use money from your funeral insurance to pay for other final expenses, including medical bills or other debts.
Who needs final expense insurance?
After researching the type of funeral you want, and what it will cost, determine if you have adequate savings to cover your final expenses. If you already have life insurance, is there enough to take care of your dependents and any other debts you have?
Make sure you take into account the increasing cost of funerals and inflation. If you have doubts your savings will pay for your final expenses, consider buying a burial insurance policy to supplement your existing plan.
If you haven’t been able to save money for your funeral and if you don’t have life insurance, it makes sense to consider buying burial coverage. Funerals are expensive and without a plan to pay for yours when upon your death – you’ll be passing on your final expenses to your loved ones.
How to Buy Burial Insurance
After estimating your final expenses and looking at your savings, you’ll have a good idea of how much burial insurance to purchase. Typical funeral policies range from $1,000 to $40,000. The average monthly premium is about $50 for a $10,000 burial policy.
You can then call 1-855-634-7399 to speak with a licensed sales agent or get a free final expense life insurance quote online.
Remember, burial insurance prices are lower than most life insurance policies. You also won’t need a medical exam to be approved to buy a final expense life insurance policy.
If you’re still not sure if you need final expense insurance, consider that it will help your loved ones afford to give you the funeral you want – without taking on the financial burden. As they grieve your loss, they’ll appreciate your funeral insurance as a final gift to them.
* Example policy is for female age 45, $10K policy which is $254 annually and $22.61 for a monthly premium. This policy is a United of Omaha : Living _Promise _WL and is a non-participating whole life insurance to age 100, policy form ICC12L080P, underwritten by United of Omaha Life Insurance Company, Omaha, NE 68175. The premium is guaranteed to age 100. Minimum issue amount is $2000, maximum issue amount is $40,000 for the level benefit policy and $20,000 for the graded benefit policy. Premiums include a $36 annual policy fee. For the graded benefit policy, if the insured dies due to natural causes in the first or second policy year, the death benefit will be 110% of the premiums paid. In the third policy year or later, the full death benefit will be paid for death due to all causes Forms and plan provisions may vary by state. Plan not available in all states. Suicide and other limits may apply. Rates effective as of 3/1/2017. SelectQuote Insurance Services, SelectQuote Insurance Agency. © 2020 SelectQuote Insurance Services. All rights reserved.