Answering Common Questions about Burial Insurance

Answering Common Questions about Burial Insurance

Most people don’t like to think about their mortality, especially when they’re younger, but being prepared for the inevitable or sudden tragedies is always the right approach. This can help your loved ones make the painful transition without compromising their financial well-being.

No matter how you look at it, dying is expensive. There are costs associated with headstones, cremations, memorials, funeral homes, and so on, which can quickly turn into more money than people can sometimes afford. The average funeral in the US costs between $7,000 and $9,000. [1] If you consider that the median American family has only about $11,000 saved up – and millions more have less than that – then it’s easy to see how a funeral can wipe out savings or put people in debt.

With that said, here are some of the most common questions related to burial insurance.

What Is Burial Insurance?

Burial insurance often entails a $5,000 to $25,000 death benefit. The ultimate aim for this type of insurance plan is to help your family cover funeral expenses. Note that, although these policies are mostly known for covering things like headstones or cremation, they can also cover various costs not strictly related to burial.

Can I Qualify for Burial Insurance?

There is no medical exam necessary when taking out burial insurance, but you can be excluded due to a terminal illness. Therefore, most people can qualify for burial insurance.

Do I Need Burial Insurance If I Have Life Insurance?

The short answer is yes since most life insurance customers don’t consider burial costs into a family plan. If you don’t want your family or beneficiary to pay out of pocket for your funeral, burial insurance is necessary.

How Much Does Burial Insurance Cost?

On average, premiums add up to a payment of no more than $15 per month. The benefits paid out upon death depend on your age and what the premium can give you. For instance, a premium of $3 each week can give you a $6,000 benefit if you’re a man of 36. A benefit for a 9-year old child in comparison would be $18,000.

Who Gets the Payout?

The person who gets the money from your burial insurance is the person you named as a beneficiary. It’s not the creditor or funeral home that receives the payout. The beneficiary is most often a loved one or a person with an insurable interest. [3] You can change this after you’ve had the burial insurance plan for a year.

How to Find the Best Burial Insurance Policy?

Searching for the right burial insurance policy can seem hard at first. Also, many Americans think it’s not worth the investment or that the payments are high, so they end up without coverage. But the fact of the matter is that there are numerous providers with enticing policies nowadays.

Despite that, you need to carefully consider your options so that you get the most benefits for the least amount of money. Start by figuring out how much your burial will cost, review your life insurance plan if you have one, and set an amount your comfortable paying every week or month. It’s best to search online and compare at least a few options before making a decision.