Burial insurance, also called funeral or final expense insurance,is a helpful tool for loved ones paying for a departed family member or friend’s funeral, memorial service, headstone, urn, and other final expenses. Although it is similar to traditional life insurance, the benefit amount is much lower than traditional. Although it is usually used to fund final arrangements, it can also be used for debt repayments such as mortgage loans, credit cards, mortgage loans, or medical bills. If you think you and your family may benefit from burial insurance, it’s easy and quick to get a free quote for a final expense life insurance policy.
Burial insurance for seniors
Most companies offer coverage to people between the ages of 50 and 85. However, most companies will provide plans for those younger than 30 days. Burial insurance policies are a form of life insurance known as “whole insurance”. This insurance is usually considered to be life insurance and can be paid up at 100.
This type of plan should be considered part of any senior’s end of life financial planning. However, you don’t have to wait until your retirement to begin researching. The cost of plans increases with age. Most providers have a maximum age limit. It’s best to start looking into purchasing one as soon as you can. Rates will be lower if you’re younger. If you are over 50 and believe you would benefit from this type coverage, you should consider your options when you draw up a will or update your power of attorney (POA), and when you assign beneficiaries to your financial accounts. Find out more about affordable life insurance, senior life insurance, and life insurance.
Funeral insurance costs & premiums
Your age, sex and current health are all factors that affect insurance premiums. Every person who seeks insurance coverage, and every company that offers it, is unique. Ask for a customized quote from each provider you are considering. Learn more about the average funeral cost to estimate how much coverage you’ll want.
Two types of funeral insurance plans
Pre-need and standard funeral insurance are the two most common types of funeral insurance. Both can help you plan for and save money for your final arrangements.
Standard Funeral Insurance
These policies are offered by life insurance companies as whole life policies. They are paid out to beneficiaries upon the passing of a loved one to cover final arrangements.
- Funeral home services
- Transport
- Burial plot cost
- Grave opening and closing
- Casket prices
- Headstone, grave vault and flowers. Obituary notices.
- Cremation (learn more: How Does Cremation Work?)
- Urn costs
You can also work with any service provider that your loved one chooses. The beneficiary can choose to use some or all the funds for other debts or expenses owed to the deceased.
- Services in legal matters
- Medical bills
- Credit card debt
- Personal, mortgage, and car loans
Pre-need Funeral Coverage
Life insurance companies offer pre-need agreements. Funeral homes may also offer them. These funds go directly to the funeral home that you have chosen to work with, and not to a loved one. These funds are usually paid almost immediately after the death.
Pre-need insurance can help people save money by allowing them to pay for services that may be cheaper today than they will be in the future. Your loved ones will not receive any difference if your plan costs more than your funeral. The same applies to burial insurance. If you have a $10,000 funeral plan, but the final arrangements are valued at $9,000 less than the $10,000 plan, the funeral home will not give the $1,000 to your family. Learn more about what to do when a loved one dies.
How to choose the best burial insurance plan for you
The decision to choose the right plan for you is personal. There are many factors that should be taken into consideration.
- How much coverage do you require?
- What support services are offered by your insurance company for your family?
- Decide whether or not you would like to have a medical exam
- What is the average funeral cost in your region?
It is similar to shopping for a car when you are looking for burial insurance. While all policies will share the same basic features and details, the details that make a policy different will vary. You should ensure that you select a policy that addresses the reason you are insuring yourself.
There are 4 types of funeral insurance premiums
The premium is the cost you pay each month for your policy. Most cases you will make monthly payments. There are many options for funeral insurance premiums.
Stepped Premiums
These premiums are calculated every year that you renew your policy. They are calculated using your age, sex, and the amount of your death benefit. While you will initially pay a lower premium, you’ll be paying more as you age.
Premiums at Level
These rates can also be determined using your age, sex, and policy size. Rates are generally locked in for life, as long as you pay them. They cannot be increased by changes in health or age.
Capped Premiums
These plans have an age or monetary limit. You will keep your coverage once you reach it. However, premiums will stop. If your deductible is $10,000, you will no longer have to pay premiums. Your coverage will end once you reach the age limit for your policy, but your premiums will stop.
Primes for the Payout Guarantee
The total amount you have paid in premiums or the original insured amount is what your beneficiary will receive.
Burial insurance with no waiting period & no exam
Many plans are guaranteed to pay the entire death benefit amount once the first payment has been made and the application is accepted by the provider. If you make one premium payment, and then die, your beneficiary will receive the entire amount that you were insured for (as long the insurer has not misrepresented anything).
When you apply for these plans, you will need to answer some basic questions about your health. You aren’t required to take a medical exam (also called a life insurance exam), give blood or urine samples, or provide your medical history. Your answers to the questions about your health will determine the coverage. These questions should be answered honestly. Your policy may deny your claim if there are discrepancies.
How to get quotes & buy online
Many companies that provide final expense insurance offer a free online quote and allow you to sign up on their websites. To help narrow down the best plan for you, you can compare policies from different companies.
It doesn’t matter if you do your research yourself or work with an agent to help you weigh your options. Every person has different needs. If you sign up for the cheapest plan, your loved ones might not have the funds they need.
Burial insurance plans for families
There are not many family plans available for burial insurance. Policies are determined by age, sex, sometimes even health. Companies have difficulty bundling individuals in a family plan.
It’s worth speaking with several companies if you and your partner are considering these policies. People also often ask if they can buy life insurance for parents.
Alternatives to Traditional Burial Insurance
Life insurance is a popular way to pay for their last expenses. This is a great option, especially if you have a large policy which will cover your final arrangements as well as any debts or expenses that your family will need to pay after your death. These policies are not the same as burial or funeral insurance. They have different rules and focus.
Term Life Insurance
Term life insurance is only good for a limited time. To keep your coverage, you’ll need to buy another policy, usually at a higher rate. There is no policy protection if you die before your policy expires. This policy is not a good choice for paying final expenses because we don’t know when or how it will end.
This type of plan can be renewed, but they are more expensive as you age. You may pay more than if you had burial insurance. You may be counting on term life insurance to cover your final arrangements. If your policy is not convertible to a whole-life or permanent plan, you should take a look at it. This option becomes more costly as you get older, so it’s worth looking at your policy to see if you can convert to a whole life or other permanent plan.
Universal Life Insurance
Universal life insurance, which relies on interest rates, is not a good choice in most cases. These policies increase in value as interest rates rise. However, they lose their value over time. As premiums fall, so does the value. You may be able transfer the value of one of these policies to a whole-life policy.
Whole Life Insurance Guaranteed
Guaranteed life insurance isn’t usually an ideal option simply because it is expensive. The provider does not assess applicants’ risk before offering coverage. There is no underwriting. To compensate for the increased risk, everyone will pay a higher premium with whole-life insurance than they would otherwise. These policies are attractive options for people who have difficulty finding life insurance coverage, such as an 80-year old man who has had three heart attacks.
Burial Insurance vs. Life Insurance
Burial insurance can be considered a type or life insurance. However, it offers a lower benefit than traditional life insurance policies. Burial policies are for final arrangements only. Life policies can be taken out to cover many other needs, such as income replacement.
Beneficiaries can use burial insurance payouts for any other expenses they choose, but the benefit amounts are designed to only cover final arrangements. They are usually offered in $5,000-$20,000 amounts, while traditional life insurance may offer benefits that can reach hundreds of thousands of dollar.
Plan for a Funeral
However you’re paying for it, there are many considerations you’ll need to make when funeral planning for yourself or a loved one.
Cremation or Burial
Because cremation and burial costs differ depending on which option you choose, it is important to decide first. You will be able to determine what other items you need to consider when you choose your final arrangements. You will need to think about the cost of a casket, headstone, and the cost of closing and opening the grave. You will need an urn, or another container for cremation. Also decide if you want a memorial ceremony.
Choose a Memorial Service
A memorial service is an essential part of the grieving process. Whether you’ve decided to be buried or cremated, the body can be present at the memorial service. You can request that the funeral home you work with embalm the body to allow it to be viewed during the service, and then cremated.
People are becoming more personal in how they pay tribute to loved ones. Here are some ideas to celebrate the life of a loved one:
- Ask their spiritual or religious leader to design a personal memorial service
- Invite guests to share their memories with the group.
- To be read in their honour, you can choose to select poems, stories or religious scriptures.
- A slideshow of video clips and memorable photos
- Instead of sending flowers, ask for donations to a charity that is close to your heart.
You and your loved ones can do anything that brings you comfort and peace.
Contact service providers and research
Once you’ve got a good idea of your goals, you can start to search for service providers that can help you realize them.
Talk to multiple funeral homes for quotes on everything you need, whether you are pre-planning or fulfilling the wishes of a loved ones who have recently died. Make sure you discuss the following:
- How long they will allow you to use their facility
- How many guests can they accommodate?
- Cost of caskets or urns
- They can offer live music or play music through speakers, and are considered a pianist.
- If they offer food or other refreshments
- If they transport the deceased to the cemetery
Your job will be easier if your loved one had a funeral or burial insurance policy that covered the funeral costs. You can reach out to the company that issued their policy and ask them about what benefits are available and how they can be paid.
Tell your loved ones what you want for the end
If you don’t communicate your final wishes to your loved ones, planning ahead for your own arrangements is a waste. Document your final arrangements so that those closest to you can execute them when it comes.
Your end-of-life wishes should always be documented. You should also have several copies of these documents in safe places that at least two loved ones can access. You can keep these safe places in your home, safe deposit box or with your attorney, if you have one.
It is a good idea for your partner, children, parents, and other trusted family members to have a heart-to-heart discussion about what you want to happen in the aftermath of your death. Although it can be difficult to have this conversation and should be treated with care, it is an important conversation that will bring you peace of mind and help your loved ones.
FAQ
What is the best way to insure my funeral?
Funeral insurance may not be necessary if you have substantial life insurance that covers your funeral and other expenses. Funeral insurance can be a great option for those who have difficulty getting life insurance. They don’t usually require a medical exam and are available to anyone up to the age 85. Some companies also offer policies that go beyond 85. The answers to the health questions on the insurance application are usually what will determine if you get coverage.
It is possible for a person to receive a payout from life insurance, but it could take longer depending on which insurance company. You should ensure that you are fully informed about the time it takes for your loved ones and your life insurance to cover your funeral expenses.
Is life insurance available to cover funeral expenses?
You can use life insurance to pay for funeral expenses. Life insurance is paid to the beneficiary. This means that they can decide how to use the money. The beneficiary may choose to use another payment method for the funeral if the deceased has significant debts.
What does Burial Insurance Cover?
Burial insurance, which is also called funeral insurance or final expense insurance, is a type of whole life insurance (read: How Does Whole Life Insurance Work?) that helps cover the costs of an individual’s final arrangements, such as the memorial service, casket or urn, and burial or cremation. The beneficiary can use any money that is left from the burial policy to pay any other expenses, such as outstanding loans, legal bills, or medical bills.
What amount of burial insurance do I need?
The average funeral cost in the United States is between $7,000 and $10,000. This includes the cost of funeral home services, burial, cremation, a casket, or urn, as well as the cost of purchasing and installing a cemetery headstone. While you may require more or less to fulfill your final wishes, a $10,000 burial insurance policy should be sufficient to cover all of these costs.
Social Security helps pay funeral expenses
The federal government pays $255 for survivors of individuals who received to help cover final expenses, but only if they meet certain requirements
How do I convert a Life Insurance Policy to a Burial Policy
A life insurance policy cannot be converted into a burial policy. Although many people think you can, because life insurance policies often pay for funerals. However, you cannot make this change. It is best to share your final wishes with loved ones and to ensure that your life insurance policy covers funeral expenses.
