The average funeral costs between $7,000 and $10,000 depending on where you live, casket choices, and whether you include a vault for the casket. This is a hefty expense for a family to face while handling their own grief too. Many are opting to purchase burial insurance so the funds are available when the funeral time arrives. Burial insurance, commonly called funeral insurance or final expense insurance, provides the funds to cover funeral expenses once the insured is deceased and funeral planning commences.
With the high cost of funerals and the added burden of making decisions, many are opting to buy burial insurance plans ahead of time. Are you wondering what you should consider when looking for the best burial insurance?
Read on for these 4 things to consider when looking at burial insurance.
The thing to know about burial insurance is that costs and premiums can vary greatly from insurer to insurer. You definitely want to research and get quotes. Not all policies are the same either. So, make sure when you’re comparing costs between policies, you’re comparing the same type of coverage.
Most policy costs are based on gender, age, and overall health. Some insurers allow you to buy a policy without a health screening, yet they will cost more.
2. Burial Insurance Over Traditional Life Insurance
You might wonder how a burial insurance plan is different from a traditional life insurance plan. These plans tend to be easier to get with fewer medical questions and even no medical exam.
Often the amount paid out in the benefit is less than a life insurance policy. It’s typically what you would need to cover the actual funeral expenses. Some plans even allow you to preplan and purchase elements of the funeral through the policy.
3. Types of Insurance Plans
There are a few ways you can purchase burial insurance plans.
The first way works like a whole life plan. You pay the premiums and name a beneficiary. When you die, the policy amount is paid directly to the beneficiaries. It can help to cover funeral expenses like funeral home services, burial costs, and the casket, for example.
The other type is one where the benefit gets paid directly to the funeral home. These policies are often offered by both insurance companies and funeral homes. You purchase the insurance knowing exactly what it’ll cover.
4. Choosing a Plan
As mentioned, plans vary between insurers and the type of policy you buy. You want to be sure you know what you’re getting for the cost.
As you consider choosing a burial plan, there are some considerations to keep in mind. These include:
- How much coverage is needed
- Whether or not the insurance provider has support services for your family
- Is a medical exam required?
You’ll also want to consider the average funeral costs in your area to make sure you get enough coverage.
Burial insurance can really help the family of a deceased during their time of grief. It helps in the process of estate planning too.
If you’d like more information on burial insurance or are interested in a quote, contact us today.