Burial Insurance: A Guide To Planning For Your Final Expenses
As we age, it’s natural to start thinking about the end of our lives. While no one likes to dwell on death, it’s important to plan for it. One of the things that people often overlook is the cost of a funeral and burial. That’s where burial insurance comes in – it’s a type of life insurance that is specifically designed to cover these expenses. In this article, we’ll take a closer look at burial insurance and why it’s worth considering.
What is Burial Insurance?
Burial insurance, also known as final expense insurance, is a type of life insurance policy that is designed to cover the cost of a funeral and burial. Unlike traditional life insurance, burial insurance typically has a lower face value (i.e. the amount of money the policy pays out upon the death of the insured) – usually between $5,000 and $25,000. The premiums for burial insurance are also typically lower than those for traditional life insurance.
Why Consider Burial Insurance?
There are several reasons why burial insurance is worth considering. First and foremost, it can provide peace of mind. Knowing that your final expenses will be covered can be a great comfort to both you and your loved ones. Additionally, burial insurance can help prevent your loved ones from having to bear the financial burden of your funeral and burial expenses.
Who is Burial Insurance For?
Burial insurance is typically marketed to seniors, but anyone can purchase a policy. If you’re concerned about the financial burden that your funeral and burial expenses could place on your loved ones, burial insurance might be a good option for you.
How Does Burial Insurance Work?
When you purchase a burial insurance policy, you’ll pay monthly or annual premiums to the insurance company. When you die, the policy will pay out a lump sum to your designated beneficiary (usually a family member or loved one) to cover your funeral and burial expenses. The beneficiary can use the money however they see fit – whether that’s paying for a funeral service, cremation, or burial.
Types of Burial Insurance
There are two main types of burial insurance: preneed and final expense. Preneed burial insurance is purchased directly from a funeral home and is used to prepay for funeral expenses. Final expense burial insurance is a traditional life insurance policy that is specifically designed to cover funeral and burial expenses.
Factors to Consider When Choosing a Burial Insurance Policy
When choosing a burial insurance policy, there are several factors to consider. These include the face value of the policy, the premiums, the age and health of the insured, and any additional benefits or riders (such as accidental death coverage or waiver of premium).
Planning for your final expenses might not be the most pleasant thing to think about, but it’s an important part of overall financial planning. Burial insurance can provide peace of mind and help prevent your loved ones from having to bear the financial burden of your funeral and burial expenses. If you’re considering burial insurance, be sure to do your research and choose a policy that meets your needs and budget.