All About Burial Insurance: Why It’s Time to Start Thinking About It

It is not an enjoyable thing to think about death, and neither is planning for it. However, it is the ultimate ending for everyone, and preparing for it will help one’s relatives have an easier time when they finally do leave this world.

An individual’s death is both a sorrowful and expensive eventuality. A lot needs to be done before, during, and after the funeral; all these have a financial implication on the deceased’s family, especially if there was no prior planning.

Funeral expenses can stretch up to tens of thousands of dollars, hence a reason one who is considerate of their family’s financial stability should start considering burial insurance. [1]

Defining Burial Insurance

Burial insurance can be defined as an insurance policy that covers the expenses of the death arrangements. It is not always necessary to have burial insurance captured in an ordinary “whole-life” insurance policy, but there is no harm doing so. Burial insurance does not cover only burial, but can also capture other expenses as well, depending on the insurance provider.

Getting Burial Insurance

All that one is required to do to get burial insurance is answering some questions to do with their health status and lifestyle, so long as they are not terminally ill.

Why Does One Need Burial Insurance If They Already Have Life Insurance?

In a snapshot, this translates to additional money for one’s family. Explained further, no one is aware of the total amounts to be spent in funerals, and that ignorance poses a financial risk to one’s family. To ensure one’s family is not subjected to strenuous spending, burial insurance policy is the way to go.

Is Burial Insurance Affordable?

One good thing about burial insurance is the flexibility; typically on a weekly or monthly plan. The premiums are in the range of $2 or $3, and collection is done at the insured’s convenience. The factors that determine the total cash received upon demise include the premium amounts paid and the age of the insured. The older a person is, the less the amount of money to be paid.

Who Benefits From This Money?

Money from the insurance company will be paid to the person specified by the insured in the insurance policy contract. This person usually has the “insurable interests” – basically the interest in ensuring the insured is alive for the longest time possible, usually a family member. The insured can, at any time, change the beneficiary for whatever reasons easily.

Picking the Finest Policy

There are several companies providing insurance policies, and the process of selecting one may seem intimidating. However, not all of them will match the needs of an individual. Having made estimates based on funeral style and expenses, one then needs to evaluate the amount of money that the insurance will give to their family in the event of death. Another essential element to consider is the amount that one wishes to pay as premiums. Start researching, filter the results, and pick one with the right policy.

Sources

[1] “How to decide if burial insurance is right for you’ (2020) https://www.forbes.com/advisor/life-insurance/burial-insurance/