Burial insurance or funeral insurance is similar to life insurance, except that it covers the insured individual’s funeral expenses after their passing. Like whole life insurance, burial insurance is a permanent type of insurance that offers a small benefit to the beneficiaries after the insured’s death.

The beneficiaries can spend that money on whatever they choose. Besides burial insurance and funeral insurance, this type of coverage may also be referred to as senior life insurance or final expense insurance. If you consider investing in an insurance policy for yourself, this brief guide will tell you all you need to know about burial expense insurance, and how it helps people secure their funeral expenses before departing.

What is a Burial Insurance Policy?

As explained, a burial insurance policy is a whole life insurance policy that pays a financial benefit upon the insured individual’s death. Beneficiaries can use the money to cover the burial or funeral expenses of their family members. Premiums for this policy are collected weekly or monthly for around 2 to 4 pounds from the policy owner’s account. These policies are flexible, easy to get, and can cover more than one person in the family. You can consult a broker or an insurance agent to apply for a policy, or you can purchase one from funeral homes in some states.

Another option to get a burial insurance policy is by paying in advance for your funeral or burial arrangements in advance. This option allows you to choose your funeral home, casket, funeral arrangements, flowers, and burial plot, and even lock their prices by making pre-payments for them. Another approach to cover burial arrangements is starting a savings account specifically for that purpose and assigning a trusted person to withdraw the funds after you die.

The ease of getting Burial Insurance

The application for burial insurance depends on the insurance company providing the coverage. Some companies have lower rates for premiums but require a medical exam when you or your loved one apply for their life or burial insurance. Still, in most cases, you can purchase the policy online or on the phone without undergoing a medical exam. When applying, you’ll be asked about your age, whether you are a smoker or not, and any serious medical conditions you currently have.

Companies that offer guaranteed issue life insurance or guaranteed acceptance for their burial insurance do not ask their applicants any medically-related questions because these policies are made for people who are too sick to qualify for other types of life insurance. However, guaranteed acceptance policies do not grant death benefits to the beneficiaries if the insured person dies within the first two to three years. Instead, the beneficiaries only receive the premiums paid by their insured family member, plus interest.

Pros of buying Burial Insurance

Burial insurance is one of the easiest and most beneficial policies available. It helps you secure some of your family’s financial expenses after your death and avoid the family drama that may arise when your loved ones have to decide who is responsible for making the necessary arrangements.

This will help you preserve your peace of mind knowing that you lifted some of the pressure off your immediate family. It is also straightforward to apply for and does not require medical exams or tests. Moreover, additional underwriting means higher maximums for your policy payouts, and the best part is that your policy payouts can be issued immediately.

Choosing your Burial Insurance policy

When selecting a burial insurance policy, you must ensure you have as much information about the insurance company as possible; different companies offer different policies and benefits, so you must choose wisely. Some companies specialise in underwriting but offer special rates for applicants with AIDS. Others will not offer any special programs or rates but do not require a medical exam before the application. All you have to do is take some time to go over the policy’s terms and consider whether its benefits are suitable for you or not before purchasing it. Gather as much information as possible about different policies, and make sure you check enough reviews about the insurance company you’re signing with.

Burial or funeral insurance is a flexible life insurance policy that covers the insured individuals’ burial arrangements. The policy is usually offered to seniors and represented in ads as an urgent action that every senior should take before dying. However, adults of all ages can and should apply for this policy. The death benefit is determined by multiplying the applicant’s age by their premiums. This means that the younger you are when you apply for the policy, the more money your beneficiaries will receive after your death.

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