While it may not be a pleasant thing to talk about, burial insurance can take a huge burden off of the loved ones you will leave behind. As the name suggests, burial insurance schemes, or pre-need insurance schemes, aim to supply funds for covering your funeral expenses.
Funerals could end up being expensive. The cost of the burial plot, the casket, and outstanding debts, if any, can add to become a large sum. By investing in a burial insurance policy, you could relieve your family of these costs.
Experts like Gary P. Cubeta from Insurance for Final Expense work to educate people on the importance of burial insurance and make policies accessible and affordable. Applications are usually accepted from persons who are older than 50 years.
Types of Burial Policies
Burial policies are broadly classified into two, simplified and guaranteed. People who have a critical health condition may not qualify for a simplified insurance policy. Guaranteed acceptance policies work by collecting small but regular payments from people for a specified period.
If the person expires before the specified term, the payments made to date will be refunded. If the person passes away after the policy period, beneficiaries can use the policy sum to payout the burial costs.
Simplified policies are for people who have no standing medical condition that could cause death. Regular payments are made for a specified period, but the payments are usually smaller than guaranteed insurance payments.
How to Apply
You may apply by filling out a simple application form. The form will contain questions about your health, illnesses, nominees, etc. The insurance company may also interview you in person or via telephone. You may want to consider the tax implication before choosing a nominee.
What Does the Policy Cover?
Insurance premiums are generally affordable for seniors and family members, depending on the type of policy opted for. Independent agents like Gary P. Cubeta from Insurance for Final Expense offers comparative burial insurance options to make decisions easy.
Regular burial insurance policies cover the following expenses:
- Funeral and burial costs usually ranging between $5000 and $25000;
- Travel expenses of close family members who need to travel to attend the funeral;
- Legal expenses and lawyers’ fees;
- Expenses of clearing out belongings of the deceased.
Benefits of Burial Insurance Policies
Burial insurance primarily protects the families of the deceased. It makes the whole process of dealing with a loved one’s death a lot easier.
Protection to Family Members and Loved Ones
Pre-need insurance accords some much-needed financial and emotional support to the family of the person who passed away. Grieving a person’s death can be challenging on various levels.
Planning for burial expenses will give you the guarantee that your loved ones won’t have to worry about expenses with everything else they have to deal with. Preened insurance policies will give the deceased person’s survivors the freedom to plan and execute the funeral without feeling anxious about the costs involved.
Burial Plans Are Affordable
Burial or final expense insurance premiums are usually much smaller than traditional life insurance policies. The premium coverage is collected in small, regular amounts for a specified period.
On the expiry of the policy or in the event of the death of the insured (whichever is sooner), the policy amount is paid to the beneficiaries of the policy, i.e., the insured’s family. The beneficiaries can use this amount to cover the cost of organizing the funeral, take care of any final expenses, pay legal charges, etc.
It Is Easy to Qualify for Final Expense Insurance
It is straightforward to apply and qualify for burial plans. The application process is simple and easy to understand. People who are above 50 years of age can apply. People who are over 80 can apply for guaranteed acceptance plans. Most people do not want to spend their lives contemplating death, but making secure plans about final expenses may leave them feeling more carefree.
Exclusions in the Policy
Some burial insurance policies may not cover the following things:
- The policy may not cover people killed while engaging in criminal activity, war, public disorder, rioting, and consorting with national enemies;
- The insurance will cease to be effective if premiums are not paid regularly.
Choose the Right Burial Policy
There are several plans and policy types available in the insurance market. You can choose one that fits your budget and expectations. It is important to note that the insured should pay premiums without fail. As parents and grandparents, it is only natural to weigh out ways to make things easy for your children and grandchildren. Being prepared for your final expenses is an excellent way to ensure they don’t feel too taxed in the event of your death.