Why Burial Insurance is a Game Changer in 2023?

TLTR: End-of-life expenses can burden your family long after you’re gone. Read on to find out what burial insurance covers and how it can relieve your loved ones of financial difficulties.  

Contemplating our mortality is certainly something most of us like to avoid in general, let alone discussing it with an insurance agent.  But from a practical point of view, it’s well worth doing. Passing on requires a lot more than a wake or a burial plot—consider the cost of the casket, auto rentals, memorial services, flowers, and more. Paying these bills out of pocket can add up to a small fortune.

Your family’s finances and well-being may depend on whether you invest in a comprehensive burial insurance policy. Luckily, burial insurance, also commonly referred to as funeral insurance or final expense life insurance, is affordable and easy to qualify for.

A burial policy isn’t a P&C policy; personal articles floaters insurance won’t cover your burial plot or urn. Rather, it’s widely considered a whole-life insurance policy with a smaller claim amount and a particular purpose—saving your loved ones the trouble of going through a financial crisis after you’ve passed on.

Burial Insurance Vs Life Insurance

Traditional life insurance is comprised of a multitude of insurance policies. Burial insurance is one of those policies included in life insurance. It covers all the funeral expenses of insureds after they pass away. In short, burial insurance is a life insurance policy with a more specific coverage than life insurance.

The maximum amount of a traditional life insurance policy you can purchase can come to millions, depending on your age and annual salary. However, Protective states that the maximum death-benefit amount of burial insurance is usually $50,000 (some insurers may offer higher amounts).

Your insurance provider will ask about your family history, health records, and annual salary before they qualify you for a life insurance policy. But burial insurance is much easier as well as faster to get, with little to no health-related questions or medical exams.

Burial insurance is best suited for people aged 50 and above. Whereas traditional life insurance is appropriate for individuals of all ages.

Is Burial Insurance Worth Buying?

For final expenses such as a funeral, burial plot costs, cremation, casket fee, and vehicle costs, the median total costs come to about $10,000 for an American family, as per the National Funeral Directors Association. But keep in mind that the Federal Trade Commission introduced the Funeral Rule, which gives you the right to:

• Compare funeral homes and their prices.
• Buy only the funeral items you want.
• Get a written price list for items as well as services provided by the funeral homes.

National Public Radio reports that most local funeral homes are extremely vague about their actual prices. Either you or a mourning family member is forced to get on call after call with several funeral homes negotiating prices in a world where costs of all other services and goods are available at the click of a button.

A funeral insurance policy takes care of all your funeral costs, without anyone having to worry about miscellaneous details.

How Does Burial Insurance Work?

Burial insurance policies are extremely easy to set up. You’re not required to get medical examinations, but you may be asked to fill out a questionnaire. Upon an insured’s death, their beneficiary only needs to contact the insurance provider with a copy of the policy, a copy of the death certificate, and a claims form to begin the claims process. You should receive your claim amount within the next 60 days.

Types of Burial Insurance

Burial insurance comes in many types, so you have the option to choose the coverage you need. Here are two common types of burial insurance policies that you can opt for:

• Guaranteed Issue Life Insurance: This policy is great for individuals who would otherwise not qualify for other life insurance policies. Guaranteed issue life insurance won’t ask pesky medical or health-related questions. Your terminal illness won’t stop you from getting a final expenses insurance policy. You pay a fixed minimum premium that won’t skyrocket due to your illnesses. As the name implies, you’re definitely guaranteed an insurance policy.
• Simplified Issue Life Insurance: A simplified issue life insurance is the same as a guaranteed issue life insurance in terms of rates and coverage. Nonetheless, you will have to answer health-related questions such as whether you’re diabetic or living in a nursing home. The answers can determine whether or not your provider will deny you coverage.

What Does Burial Insurance Cover?

Opting for burial insurance will pay out a benefit amount for the following expenses in case of accidental death, terminal illness, or death from natural causes:

• Funeral home expenses
• Flowers
• Headstone
• Gravedigging costs
• Casket
• Crematorium costs
• A hearse or van costs
• Burial plot

Additionally, you or your beneficiaries can pay for any outstanding debts, medical fees, credit card payments, or legal fees with any leftover amount.

Note: Burial insurance will cover hearse as well as van costs but won’t cover your personal vehicles. Instead, look for either a personal auto policy or car insurance. 

How to Apply for A Burial Insurance Policy?

Applying for and qualifying for burial insurance is relatively easy. Here are five simple steps you can follow:

Step 1: Look around for the policy that would suit you best. The biggest mistake most people make while purchasing insurance is that they settle for the minimum coverage. Your unique lifestyle begs for tailor-made policies that insurance companies are happy to cater to.

Step 2: Talk to an experienced insurance agent and consult them regarding coverage, endorsements, and discounts. The agent will ask you questions as well as offer you quotes from a few companies that best fit your needs.

Step 3: Complete the application online or over the phone. Burial insurance doesn’t require medical exams, questions, or physical tests. It’s that easy!

Step 4: You will qualify for the coverage in less than a week or so. Once your plan is approved, the insurance company will send a copy of your policy to you within two weeks. After payments are set up, you’ve successfully acquired a burial insurance policy.

Burial Policy with No Waiting Period

Most burial insurance policies have a waiting period of about two years. That means that in the event of death within the first 24 months of the policy, the beneficiary will only get 10% of the coverage amount. In some cases, they will get partial coverage in the event of the insured’s death in the first 12 months.

Burial insurance with no waiting period will guarantee that they get the full coverage amount regardless of when the insured passes away. Whether you’ve made only one premium payment or several, your insurance company will pay out the full benefit amount to your beneficiary.

Best Burial Insurance Companies of 2023

A lot of insurance providers sell burial coverage. Here’s a list of companies that have the best burial insurance policy in terms of ease, pricing, value, and waiting period, according to Investopedia:

• AARP Guaranteed Acceptance Life Insurance
• Mutual of Omaha
• Fidelity Life
• AAA Life Insurance Company

How Much Does Burial Insurance Cost?

Nerd Wallet reports that the benefit amount for most burial insurance policies is between $5,000 and $25,000. Some factors that affect your premium are your age, gender, payout, as well as overall health. You can determine whether to pay your premiums on a weekly or a monthly basis.

According to the Insurance Information Institute, premiums for burial insurance can range from $2 to $3 per week. Similarly, according to Coverage, monthly premiums average at around $50.

Best Burial Insurance for Seniors

Naturally, final expense insurance policies or burial insurance for seniors, make sense for people over the age of 40 to purchase. The premiums for seniors vary depending on your age, gender, and health status. Most insurance companies will prepare a tailored quote according to your budget and desired coverage. Below is a list of gross premium amounts based on an individual’s age range and gender for a $10,000 death benefit with no waiting period.

Connect With a Burial Insurance Agent Near You

Do you require a dependable burial insurance policy? Are you sick of looking online for a final expense insurance quote?

Save yourself the trouble and use us to find a reputable burial insurance agent near you.

A good insurance agent will do more than sell you a policy. These agents are as distinct as the customers they serve. As a result, as a buyer, you must understand your coverage requirements and be able to express them clearly to an agent.

When you’ve found a potential insurance agent in your area with whom you’d like to collaborate, try the following:

• Check with your friends and family about their services
• Investigate the policy options they provide
• Get acquainted with their behavior and personality
• Their insurance industry experience

You can be confident that the agents you find on Agency Height are among the best in the industry and your neighborhood. These agents understand the locality and can get you the right coverage per your needs and budget.

In Conclusion

Burial insurance helps relieve unnecessary difficulties for your loved ones in an already difficult time. Let your passing be about your family celebrating your memory and not about scrambling to find the money to pay for your funeral expenses.

Has this article been helpful to you? Let us know in the comments section.

If you’re looking for experienced local insurance agents to help you find the right burial insurance policies, then we can help! Get in touch with our experts, find an agent today.