What is Burial Insurance?
Burial insurance (also referred to as final expense or funeral insurance) offers a small death benefit that helps cover your funeral costs. As it’s a form of whole life insurance policy, burial policies are frequently sold through companies specializing in this product line.
Most burial insurance policies feature flexible underwriting criteria, requiring only limited health questions during underwriting. Some policies even offer no medical exam coverage options.
It pays for funeral expenses
Burial insurance (also referred to as pre-need or funeral coverage) allows you to prepay certain expenses and lock in prices now, before prices increase further. Similar to whole life policies, burial insurance requires only minimal health questions and exams for purchase.
Choose a policy with graded benefits over two to three years for optimal results, so your loved ones will only receive part of your death benefit upon your passing. This type of plan is great for seniors in failing health or those unable to qualify for traditional life insurance due to preexisting conditions like diabetes, asthma, HIV/AIDS, high cholesterol or protein in urine – as these policies provide less financial strain on family members when death strikes. Burial insurance policies can help ease financial pressure off family members. Before signing any policy it’s wise to shop around since some policies offer better rates while others provide competitive terms – before signing any policy it is wise to shop around first as some policies offer less than stellar customer service records – ensure it provides peace of mind while searching out companies with excellent customer support records is key!
It’s a form of life insurance
Burial insurance (commonly referred to as final expense life insurance) is a form of whole and universal life insurance which pays out a smaller death benefit, making it suitable for people who require just enough money for funeral costs but do not qualify for traditional life policies due to health concerns or dangerous lifestyle choices.
Permanent life policies offer permanent life coverage at more competitive prices than term policies, which expire after a specific period. Furthermore, permanent policies build cash value while term policies don’t.
Most burial insurance policies feature an easy application process without needing a physical exam; this is known as simplified issue and only requires answering a few health-related questions. There are also guaranteed-issue policies, which offer coverage regardless of health condition – these may be more expensive and may not provide enough death benefits for you.
It’s a type of pre-need insurance
Burial insurance is a pre-need policy designed to pay for funeral costs in advance and cover any lingering debts. Many companies offer several policies from which you can select the one that best meets your needs; unlike life insurance policies which have cash values attached, burial insurance has none – yet can still help cover funeral costs and other final expenses.
These plans are generally guaranteed issue, meaning you can qualify without needing to undergo a medical exam or answer health-related questions. This makes them an attractive option for people with serious medical issues or those unable to afford regular life insurance policies. Burial and pre-need policies differ primarily in that burial insurance pays directly out to beneficiaries while pre-need policies often pay out directly to funeral homes where funeral details have been planned; burial insurance tends to be cheaper and easier to obtain than traditional life policies.
It’s a type of permanent life insurance
Burial insurance is a form of permanent life insurance that typically provides only a small death benefit to help cover final expenses for families who lose someone close, unlike traditional whole life policies which offer larger death benefits to replace income lost from death and provide their beneficiaries with replacement income streams.
Burial policies offer flexibility that goes beyond covering funeral costs; beneficiaries can also use them at their discretion to pay off debt or final expenses of deceased loved ones and prevent their surviving family members from incurring significant debt following their demise. This may ease financial strain on survivors while helping avoid incurring significant debt themselves following death of someone close to them.
Burial insurance policies can be purchased through most traditional life insurers as well as certain funeral homes in certain states, making them easier than traditional life policies to obtain due to no medical exams or waiting periods required for coverage. Some providers also provide guaranteed issue burial insurance plans which cover people regardless of health condition – although such options usually come at a higher premium rate.
