What is burial insurance?
Burial Life Insurance is also known as Funeral Insurance or Final Expense insurance. It is the specific type that protects the funeral expenses of the insurer after his death. The coverage amount is not only limited to burial expenses, but it can also be used to pay off the loans, credit card bills, or medical expenses of the deceased. It is a type of whole life insurance designed for older people to secure their final costs.
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How much does burial insurance cost?
The main objective of the burial insurance is to secure the final expenses of the insurer who are either old or terminally ill; the death benefit offered is minor. However, the premiums paid may be costly as compared to the premium rates for other policies. The premium rates are determined by the age, gender, and coverage amount of the policy, so it is different for different people. The coverage ranges from $5,000 up to $25,000. For example, to get coverage of $25,000 for a 60 years old man, the monthly premium rate is $80.75.
How Does Burial Insurance Work?
Burial life insurance is one of the most easily accessible life insurance policies to purchase. There is no medical examination required, which makes the application process more manageable. The policy is mainly offered to the candidate who is either old or terminally ill and do not qualify for insurance policies in other companies. The insurer can declare their family members or any funeral home his beneficiaries. Upon his death, the benefit is given to the said beneficiaries. The insurer can also write down a final wish explaining the allocation of the benefit according to his requirement. Since it is a type of whole life insurance, the policy remains active throughout the life for as long as the premiums are paid.
Pros & Cons of Burial Insurance
Pros: Burial Life insurance is beneficial as it secures the final expenses of the insurer. Everyone deserves to live their last years in satisfaction, knowing that there are no financial loose ends. Burial Life insurance provides this protection. The death benefit may be utilized to pay for the funeral or burial expenses or pay off the loans or bills. Having no medical examination, the burial life insurance is guaranteed.
Cons: The death benefit provided by Burial life insurance is relatively very low. Acquiring death benefits from any other traditional insurance policy can guarantee more coverage amount.
Burial Insurance vs. Pre-need Funeral Insurance
Burial Insurance provides death benefits or coverage amount to the declared beneficiaries of the deceased insurer. The beneficiaries decide how to use the money to cover the funeral cost or pay off the debts. Whereas in Preneed funeral insurance, the coverage amount is paid directly to the funeral homes rather than any family members. Unlike Burial Insurance, Pre-need funeral insurance is usually purchased from specific funeral homes rather than any insurance company. The coverage amount for the pre-need funeral is any amount that can be easily used to pay for the expenses of burial or cremation. Therefore, the benefit from pre-need life insurance covers only the funeral expenses.
5 Best Burial Insurance Companies
AARP provides permanent life insurance to cover the burial expenses to individuals in the age bracket of 45 to 80. The insurance is a guaranteed issue, which means that no application can be rejected. There is no medical examination or health-related questionnaire. With fixed premium rates, the coverage range is up to $25,000.
March, Mutual of Omaha
Mutual of Omaha
Mutual of Omaha offers Burial Insurance to individuals who are 45 to 85 years long. The coverage amount provided is meager, starting from $2,000 to $25,000. There is a waiting period of two years, during which if the insurer dies, the beneficiaries only received the amount of the premiums paid with a 10% increment. However, if the insurer dies after the waiting period, the beneficiaries receive the full death benefit.
March, Global life
Globe life offers a final expense insurance policy at a meager premium rate which is about $3.49. The coverage amount ranges from $5,000 to $50,000. The policy has no waiting period, and it can be purchased without any medical or health exam. Global life provides the option of adding coverage for the spouse as well.
March, Colonial Penn
Colonial Penn life insurance offers permanent burial life insurance that comes with no medical exam or health-related questionnaire. The minimum age to acquire this policy is 50, whereas the maximum age is 85. The coverage amount provided by this policy is up to $50,000.
March, Fidelity Life
Getting burial insurance from Fidelity Life is an easy and simple task. It offers RAPIDecision Senior Life Term Life Insurance which provides coverage for 30 years to people aged 50 to 70. The coverage amounts ranges from $10,000 to $150,000. Fidelity Insurance Company also offers RAPIDecision Senior Life Whole Life providing the same coverage amount for individuals aged 50 to 85. This whole life policy has a waiting period of about three years. RAPIDecision Final Expense provides insurance to individuals in the age bracket of 50 with the coverage range of $5,000 to $35,000.