Losing a loved one is heartbreaking, no matter what the circumstances are. The weeks following someone’s death can be extremely difficult for those left behind as they plan a funeral and burial. The fact that burials can be costly adds to the issue. According to the National Funeral Directors Association, these expenditures average around $7,000, depending on the services chosen, which can quickly add up. The last thing a bereaved person should be concerned about is how they will pay for these services. You may want to consider obtaining burial insurance, often known as end-of-life insurance, to assist reduce some of the hardship on your family. Here’s what you should know about a burial insurance policy and how it can benefit seniors. We’ll also look at a review of the best burial insurance companies for 2023.<\/p>\n\n\n\n
Your loved ones will know what will happen after you die if you have your affairs in order. You may have left instructions on how you want your body to be treated, as well as notes on how you want your memorial ceremony to be organized or what you want to be engraved on a tombstone.<\/p>\n\n\n\n
But all of these things are expensive, often in the thousands of dollars. If you do not want your heirs to bear those fees, you should think about purchasing burial coverage. This is a small permanent life insurance policy that pays a death benefit \u2014 typically between $5,000 and $25,000 \u2014 to meet these expenses.<\/p>\n\n\n\n
Because the payout for burial insurance is tiny in comparison to many standard life insurance plans, the premiums can also be fairly low. The insurance is simple to obtain and does not need a medical checkup, even for individuals in poor health. However, a waiting period may apply, or the policy may only provide restricted benefits for the first two years.<\/p>\n\n\n\n
Burial insurance policies cover all of the regular costs associated with a person’s death. Unless you have managed a loved one’s estate, you may be unaware of the number of fees involved with death or how rapidly they can add up. Costs may include, according to the Federal Trade Commission:<\/p>\n\n\n\n
Burial and funeral insurance policies do not typically need a medical exam, and the application may just include a few health questions\u2014or none at all. Rates are mostly determined by age and gender. Burial insurance is usually one of the following types of whole life insurance:<\/p>\n\n\n\n
Simplified issue life insurance: There will be no medical exam and only a few health questions, but answering “yes” to any of them may disqualify you. For example, simplified issue applications frequently ask if you live in a nursing home or if you have HIV.<\/p>\n\n\n\n
There are no health questions or medical exams required to apply for guaranteed issue life insurance. You cannot be refused.<\/p>\n\n\n\n
The disadvantage of these simple applications is that the policy usually has a tiered death benefit. If you die within the first two or three years of purchasing the policy, your beneficiaries will only receive a return of the premiums you paid, plus some interest, or a tiny percentage of the policy’s coverage amount. Accidental deaths, such as those in an aircraft crash, are normally fully covered from the commencement of the policy.<\/p>\n\n\n\n
If you are 65 or older, you may be considering end-of-life planning and getting burial insurance. However, the more the premium for the policy, the older you are. Burial insurance becomes more reasonable as you get older. Furthermore, many policies include a vesting period between the time of purchase and when the insurance is paid out. Your loved ones would not receive the death benefit if you died within the vesting period. For these reasons, it’s critical to carefully review the policy’s terms to verify it’s the right policy for you.<\/p>\n\n\n\n
Burial insurance is typically a guaranteed issue policy, which indicates that anyone who applies will be approved. There is no medical checkup, and you may not be required to answer any health-related questions.<\/p>\n\n\n\n
Because burial insurance policy applications demand little to no medical information, the cost of the coverage is exorbitant. According to our analysis, a healthy 50-year-old male can obtain $100,000 in term life insurance for 30 years for less than the cost of $10,000 in burial insurance. Even a 50-year-old man with high blood pressure can obtain the same level of term life insurance for less than the cost of a $10,000 burial policy.<\/p>\n\n\n\n