Burial Insurance or Funeral Insurance or Final Expense Insurance, is designed specifically to pay for end of life expenses, like funeral and burial costs. It involves paying a small amount every month. At the time of your death, your beneficiary receives a lump sum that may be used for burial and funeral costs or unpaid medical bills, debts. The amount left after paying for all these expenses may be used by the beneficiary however they see fit.
With funeral expenses ranging anywhere from $7000 to $10,000, burial insurance ensures that these costs are easy to bear for you and your loved ones.
Why should you consider a burial insurance?
Gives your loved ones a quick pay-out
Death is often an unexpected event, meaning the costs can become a sudden burden to your family and loved ones. With burial insurance you don’t have to worry about them taking loans or using up their hard earned savings. Based on your burial insurance plan, you receive between $5000 and $40,000 to cover your end of life expenses.
Applying for a plan is easy
The process for applying for a burial insurance plan is pretty straight forward. You don’t need to go through heaps of paperwork. You can apply from the comfort of your home, through email or over the phone. This eliminates any pressure you may experience during face to face conversations with a sales person.
No physical exam required
Burial insurance plans do not require you to take any physical exam, you may have to fill out questionnaires on your health but that’s about it. Since burial insurance policies are designed to absorb heavy risks, you don’t have to worry about your health condition as you are very likely to qualify.
Guaranteed acceptance, no health questions
There are some insurance companies that ask no health questions at all and guarantee acceptance as long as you meet the age requirements. But these “guaranteed insurance” policies have a catch:
- 24 month waiting period. All guaranteed insurance companies have this policy. If you pass away during the first 24 months, your beneficiaries are only refunded the premiums you paid with a little interest
- More cost per month. Since the insurance company is taking a greater risk insuring you, they charge more
- Almost everyone gets approved
Unlike traditional insurance, health doesn’t matter much in burial insurance. As long as you are 85 or below, you can easily qualify for many burial insurance plans.
How do you choose a burial insurance plan?
It can be very tedious and seemingly impossible if you don’t know what you are looking for. These are the three elements that will help you narrow down the perfect burial insurance plan for you:
- The insurance company is and has been reliable and financially stable. If the company is not financially stable, you are at the risk of them not honoring their obligation when you need them to.
- Immediate death benefit. Though there are certain conditions that require a 24 month waiting period, most plans offer immediate protection. Though immediate coverage is the goal, if it isn’t possible then you should aim for partial coverage during the first 24 months. If full or partial coverage during the first 24 months isn’t an option only then resort to a two-year waiting period.
- The plan costs less than other plans from other insurance companies
Here is a list of best burial insurance companies in 2020.
Best for smaller expense funeral
If you’re preparing for having a smaller-sized funeral or going with cremation, you may not require $50,000 and even $25,000 in a funeral insurance policy. Mutual of Omaha provides smaller-sized burial insurance coverage, with protection starting as reduced as $2,000 ($ 5,000 in Washington State). The optimum plan protection is $25,000, although it might be possible to increase that further by talking to a Common of Omaha representative. This is a guaranteed entire life insurance policy supplied to individuals aged 45 to 85. (If you live in New York City, the age variety diminishes a little, to 50 to 75.) There is a two-year waiting duration, which implies that if you pass away within the first two years, your beneficiary would just receive an advantage quantity equal to the premiums you have actually paid, plus 10%. Afterward first two years, nevertheless, your recipient would certainly be qualified to the full benefit quantity you’ve chosen for the policy.
Burial Insurance Plan
Best for Seniors aged 50 to 85
Lots of funeral insurance policies have a minimum age at which you can request protection, typically around 50. Colonial Life offers you various alternatives for obtaining a burial insurance policy at practically any type of age. Guaranteed Issue Life Insurance is readily available for individuals aged 50 to 85 in a lot of states. This is permanent, entire life insurance without any medical exam or health inquiries required. Whole Life Insurance is one more alternative. This policy provides coverage up to $50,000 for people aged 40 to 75. Once more, there’s no medical exam and this plan constructs cash money worth you can obtain versus. Lastly, Renewable Term Life Insurance provides $50,000 in term life security for adults aged 18 to 75. This policy is assured eco-friendly up to age 90.
Gerber Life Burial Insurance
Best for Guaranteed Final expense Coverage
The Gerber life insurance policy Strategy supplies a beneficial whole life insurance policy to help cover final expenses, such as clinical bills, burial costs and also unpaid debt If you are between 50 as well as 80 years of age, you have assured acceptance, despite your health background.
No medical examinations to complete or extensive health and wellness surveys to load out. Complete your application online in minutes.
Select the amount of protection you need from $5,000 to $25,000.
No, with Gerber Life’s Guaranteed Life insurance policy, the amount you pay when insurance coverage starts coincides quantity you’ll pay throughout the period of your plan. If you make a decision to enhance coverage or the regularity of your repayments, the only time your premiums might transform is.
AIG Direct Guaranteed Burial Insurance
Best for Additional Living Benefit Protection
Burial insurance coverage can make handling a funeral, as well as a funeral, costs much less stressful for your loved ones after you pass away, yet some burial policies also use living advantage securities. AIG Direct’s Guaranteed Concern Whole Life policy is designed to assist with last costs while additionally covering you for chronic and terminal disease. If you’re identified with a chronic ailment that keeps you from going about your daily routine customarily, AIG will return all your premiums compensated to 25 percent of the plan’s stated value. If you’re identified with a terminal disease, AIG insurance permits you to gain access to 50 percent of your death benefit quantity while you live to aid spend for medical care or other costs. You’ll pay a management fee to capitalize on those perks yet having those alternatives readily available can provide you some added economic peace of mind if you create a serious ailment later on in life.
Fidelity Life RAPIDecision Burial Insurance
Best for Instant Decision for Seniors
Transamerica Burial Insurance Policy
Best for Seniors with Health issues
If you’re acquiring a funeral cost insurance policy when you’re more youthful as well as much healthier, a waiting duration might not be a large bargain. Transamerica’s Immediate Service burial insurance coverage policy is developed to function around that. You can be aged 45 to 85 to use for this protection as well as insurance coverage amounts vary from $1,000 to $55,000, with the optimum advantage quantity established by age.