Many of us buy life insurance as a means to cover financial needs and expenses like funeral costs, mortgage, kids’ education, and income replacement in case of death, etc. According to numbers, almost 84% of people cite final expenses as the main reason for buying life insurance. Burial or funeral insurance is a type of life insurance designed to fulfill funeral costs and expenses.
What is Burial or Funeral Insurance & How Does it Work?
Funeral insurance, also known as a final expense or burial insurance is a type of insurance policy that helps people pay for the final expenses of a deceased family member or friend. The money obtained as a policy claim can be used to meet funeral related costs like memorial services, headstones, and other costs associated. Basically, it is a life insurance policy with a smaller benefit amount that is enough to pay for final expenses. Since funeral insurance is purchased to cover final costs, the money can also be used on other things like education of kids, medical bills, mortgage, and so on. As it comes with smaller benefit, the amount may not be enough for other things like the mortgage, personal loan, or credit card payments, etc. Funeral insurance policies don’t require medical examinations. However, the insurance company may ask a few health questions or no questions at all when finalizing an insurance deal.
Burial Insurance for Seniors
Buying funeral insurance is the best decision for people ages 50 to 85. Most insurance companies also offer such plans to those who are younger. Most of the policies are a particular type of life insurance and are named whole life insurance. But these policies offer smaller benefits than traditional life insurance plans. This type of insurance plan have no terms
According to experts, a funeral insurance plan should be an integral part of every senior’s financial planning to help family members in paying final expenses. A funeral insurance plan may be expensive if you are buying one at 70 or more. Some insurance companies offer such plans with a maximum age limit. This is the reason, one should buy a plan as early as possible to enjoy affordable premiums and greater benefits. The younger you are when buying a burial insurance policy, the cheaper the premium rate will be. You can do an internet search or contact with an insurance company’s agent in your area to learn more about their funeral insurance plans and premiums.
Funeral Insurance Costs & Premiums
Premium amount for a funeral insurance plan is usually based on several factors including your age, sex, current health condition and size of the plan, etc. Every insurance company has its own plans with unique terms, conditions and benefits. That’s why, you should do your homework properly by contacting different insurance providers to get the best rates and bigger benefits. You can also ask the insurance company or agent for a custom plan or quote as per your individual needs and requirements. However, you should also learn about the average funeral cost in your area to determine how much coverage will be needed and which plan suits your needs.
Is it Possible to Get Funeral Insurance Quotes Online?
In this digital era of life, more and more insurance companies and digitizing their processes. Offering insurance quotes online is one of the great initiatives to provide modern consumers with an excellent experience. Many insurance companies allow their customers to sign up on their official websites to get free online quotes. You can also compare different policies and benefits online to narrow down available options and make an informed decision.
Whether you search over the web yourself or work with an agent, it is always a good idea to get quotes from different insurance providers to consider the best option available. In this way, you can get an affordable funeral insurance policy with a better premium rate.