Many people use life insurance as a means to defray their final expenses. In fact, final expenses are one of the major reasons why policyholders obtain life insurance coverage.
If you’re a senior looking to defray your end-of-life expenses, burial insurance is a type of life insurance designed specifically for final expenses.
It is intended to pay for burial or funeral expenses, it’s often called “final expense insurance” or “funeral insurance”. One of the key benefits of burial insurance is that it provides permanent coverage, plus it can build cash value.
Sometimes burial insurance is used to refer to pre-need or prepaid life insurance plans. However, for the purpose of discussing the benefits of burial insurance, this post will use burial insurance to mean funeral insurance.
Read on to find the benefits of burial insurance policies.
Burial insurance is available to applicants with poor health.
It is common knowledge that immune systems gradually deteriorate with age.
This means seniors are more prone to disease and, of course, tend to have chronic health conditions. For this reason, it can be hard for them to qualify for ordinary life insurance policies.
For seniors with poor health, the good news is that you are at perfect liberty to pursue burial insurance.
Even when you are too sickly, some conditions will only raise your premiums by a few dollars, not result in denial of policy. You can even qualify for a burial insurance policy when you are bedridden or living in a nursing home.
Burial insurance policies are available to people with serious health conditions like:
- HIV, AID, and ARC
- Heart disease
- Kidney disease
- Terminal disease
- Dementia or Alzheimer’s disease or ALS
- Coronary artery disease
- Lung disease
Oddly enough, some burial insurance carriers can approve you for a policy when you need oxygen equipment 24/7 to assist in breathing.
Further, some burial insurance policies have no medical questions, and acceptance is guaranteed. This means people with pre-existing chronic health conditions can still qualify for a policy.
Burial insurance does not require a medical exam.
If you are looking for a simple policy to defray your final expenses, burial insurance might be an ideal option.
Compared to other life insurance policies, burial insurance is far much easier to qualify for. It is a no-medical exam policy, meaning people with poor health are more likely to qualify.
Typically, applying for burial insurance involves completing a health and lifestyle questionnaire. Precisely, you will be asked questions relating to your age, tobacco usage, and whether you have certain health conditions.
To ensure most people get coverage, burial insurance providers offer policies that don’t require a medical exam and health questions.
Burial insurance is also a perfect option for people who want a life insurance policy but d not want to take medical exams. It can also be a resort for people who had purchased term life policies but can’t pre-qualify because they are sickly.
In a nutshell, the absence of medical exams is a big advantage to burial insurance. It makes it possible for many people to qualify.
Burial insurance is affordable.
There are many seniors who can’t afford life insurance policies over $25,000. This could make things harder for them if they want to defray their end-of-life expenses.
In such cases, burial insurance policies are a great resort. With burial insurance policies, seniors can land affordable deals enough to cover their funeral expenses.
Burial insurance policies allow you to obtain up to $25,000 face amount and that’s all many seniors can afford and probably need.
If you land a great deal, sometimes, it could mean paying $40 to $50 to defray your funeral expenses. Whether you obtain the lowest or highest possible coverage, burial insurance is worth it, particularly if you have poor health.
Burial insurance benefits can be used to fund just about anything.
Burial insurance is mainly designed to help older adults defray their end-of-life expenses. Even so, the payout from burial insurance comes with no strings attached. This means that your burial insurance policy beneficiaries can use the lump sum to fund whatever they wish.
Even though death benefits can be used for any purpose, most people use the proceeds to cover burial and funeral expenses. The money is also commonly used to cover medical bills and hospice care. After the burial, the balances can be used to fund just about anything.
Burial insurance benefits may be used to pay off sizable debts and other unpaid obligations left by the deceased. Many families have also used death benefits to cover daily expenses, which is still acceptable.
Some philanthropists usually name charity organizations as beneficiaries, which is an acceptable and excellent way to achieve philanthropic goals.
Burial insurance provides permanent coverage.
When you purchase a burial insurance policy, it will never expire, and the coverage amount will not fluctuate. However, this is only true if you pay the premiums of time.
Precisely, the means that your loved ones will ultimately get the payout to cover your burial when you pass away. It is safe to say that a burial insurance policy gives your dear ones freedom to spend their money without worrying about what might happen when you die.
Burial insurance policies can be customized with riders.
Riders are additional benefits usually added to life insurance policies to offer extra protection. Depending on the burial insurance policy you are buying, you may have a chance to customize it with various riders.
At the bare minimum, you can purchase accidental death and accelerated death riders. Other carriers allow you to buy riders to cover your family.
Of significance, the rider you can buy will vary from one provider to another and depend on the policy you’re buying. Besides, some riders may not be worth the cost, so do your research before buying.
Burial policies provide peace of mind to your loved ones.
Purchasing a burial insurance policy is one of the excellent ways to save your family from the unneeded stress when grieving. They get peace of mind knowing that they will leverage your burial insurance policy to cover funeral costs when you pass away.
What’s more, you can document your final wishes to make everything easier for them. Thankfully, many burial insurance carriers allow you to state your wishes and how you want your funeral service to be done.
A burial insurance policy provides immediate funds to cover funeral costs.
Investing in a burial insurance policy is an ideal way to ensure that your loved ones do not dip into their savings to pay costs associated with your funeral.
Precisely, burial insurance providers usually transfer the death benefits to the beneficiary’s account within the shortest time possible after the policyholder’s death. This allows family members and friends to start planning the deceased’s funeral immediately.
Some insurers promise to pay out the death benefit within 24 hours after the claim is approved. This can be very helpful if the policyholder dies while far from home.
Burial insurance premiums stay the same.
Typically, burial insurance policy providers offer a feature called price lock. As the name suggests, price lock means that the premiums will never increase throughout the policyholder’s life.
It is safe to say that burial insurance policies make it easy for policyholders to budget because they know the actual amount to pay. This is a great advantage for people who have a fixed income.
With burial insurance, you will be sure that you won’t be surprised by an increase in rates.
Burial insurance is perfect for people with no lifelong dependents.
Burial insurance policies are often marketed to seniors as something very crucial they should buy to defray their end-of-life expenses. For seniors with no people depending on them financially, this can be a great advantage.
With a burial insurance policy, people with no lifelong dependents have a chance to cover their funeral expenses.
This will help ensure that your life ends without stressing others. After all, with no dependents, all that people may want after your death is money to cover your funeral expenses.
11: The insured is free to choose a beneficiary.
When you buy a burial insurance cover, one requirement is that you state a beneficiary. This is a person who is entitled to the coverage amount once you pass away.
Your beneficiary will be responsible for all the wishes you make concerning your final rites. For this reason, you should at least choose a beneficiary that you trust and one who can handle your burial rites with respect to your will.
Unlike in other insurance policies, where one is restricted to choosing a beneficiary among their close relatives, a burial insurance policy allows you, the insured, to select a beneficiary of your wish. Whether you choose a close friend, family member, a funeral home, or a charity organization, there are no restrictions.
In many cases, people choose their family members as beneficiaries to avoid financial disputes. If you are elderly and have no close dependants, you can opt to pick a funeral home or a charity organization to handle your final rites.
If you trust your best friends, there is no offense in selecting them as beneficiaries. The decision lies solely in your hands; no burial insurance company will restrict you on matters concerning who your beneficiary should be.
Having a burial insurance cover gives your family financial confidence.
If you have financial dependents and are aging, buying a burial insurance policy is a good idea. This is because you will be assured that your defendants will not strain financially after your death.
The payout amount that your beneficiary will receive may be used for the burial ceremony and the rest for the financial upkeep of the family.
Typically, you can opt to spend the rest of your savings or pension to enjoy your last days. However, this is only if you’re sure that your dependents have enough coverage to use once you leave the world.
A burial insurance policy accumulates cash value over time.
As you pay premiums towards your coverage, they accumulate a cash value per single premium paid. Therefore, you keep on paying premiums, and you will be expanding your cash value account to a better and more reasonable amount.
The cash value accumulated makes a burial insurance cover appear close to a viable investment with some returns. This cash value amount is helpful to the insured and can be used in several ways.
First, you can withdraw the cash value amount and use it for personal bills depending on the restrictions set by a carrier. In addition, you can take a loan and use the cash value as collateral.
In a situation where you are facing some financial crisis, you can use the build-up cash to pay for premiums. Additionally, you will not be harassed to pay the loan you take with a cash value as collateral.
The company giving out the loan will wait until you pass on and deduct the loan from the coverage amount.
Having a burial insurance cover assures the policyholder a decent send-off.
If you are a classy person or have high social standards, you will wish to have a decent send-off that suits your status quo.
Purchasing a burial insurance cover with a coverage amount of your choice will give you some assurance of a well-organized send-off ceremony.
In addition, you can discuss with either the beneficiary or insurance company how you want your lifeless body to be handled. You will enjoy your last days knowing well that the send-off will directly represent the life you lived.
The application process for a burial insurance policy is simple and precise.
You should not expect a lengthy process when you need a burial insurance cover. You can simply search online for a reputable company and check their services and coverage benefits. You will then need to request a quote from the company of your choice, fill in an application and answer a short questionnaire.
Some companies will require you to apply through an agent. But be assured that the agent will simplify the application process and help you answer the questionnaire appropriately. After answering a questionnaire, you will only wait to be notified that you have qualified and start paying premiums.
Some agents are direct and may fail to state the disadvantages of their companies. If you must go through an agent, always pick an independent agent who will help you analyze the quotes and coverages and choose which team is worthy of you and can fulfill your desires and financial status.
Most insurance agents will guide you on what policy to buy because they are more experienced. It is advisable for a person seeking burial insurance to deal with an agent to simplify the entire application process.
Burial insurance benefits are not taxable.
One of the most interesting things about Burial insurance is that the benefits are tax-free. Once the policyholder passes, the benefits are given to the stated beneficiary without deducting any tax.
Unlike other investments and insurance covers where you will be taxed for any penny you receive, burial insurance returns are tax-free, and every cent accumulated should go to the beneficiary and let them decide how to use it.
Having a burial insurance policy enables you to plan for your burial.
Different people have different lifestyles and wishes. Similarly, people will wish their lifeless bodies to be handled as per their desires and reflect who they were while living.
For example, a wealthy person may wish to have some prominent people attend their burial. In a will, you may even outline the place, cost range of burial equipment, types of flowers, and which to attend your burial.
Buying a burial insurance policy will enable you to plan accordingly on how you wish to be laid to eternal rest. These plans may only depend on the amount of coverage you are applying for.
Consider the payable range. Whether you want your body to be cremated, the type of casket or urn you want, and many more.
What is burial insurance?
Burial insurance is a type of permanent life insurance intended to cover costs associated with the policyholder’s death. It is sometimes referred to as funeral insurance and pays the benefits to your beneficiary.
Do funeral homes offer burial insurance?
Like other policies, burial insurance is purchased through an insurance company. Notably, agents who are associated with funeral homes might sell a closely related policy known as pre-need insurance.
How can burial insurance benefits be used?
Burial insurance policy benefits can be used to fund just about anything that your beneficiaries wish to. All in all, many people use payouts from burial insurance policies to cover medical bills and funeral expenses.
Does burial insurance require a medical exam?
Burial insurance is a type of life insurance policy for which you can be approved without taking any in-person medical exam. Typically, burial insurance applicants complete a health questionnaire in lieu of a medical exam.