In 2019, the median cost for a funeral with a viewing and burial was $7,640. Since this doesn’t take some other miscellaneous costs into account, the real cost may be even more. So how do your loved ones pay for it in the event you pass? Insurance may be the answer.
Many people confuse burial insurance with life insurance. But knowing the difference can help you make the best decision. Let’s discuss burial insurance vs life insurance so you can choose which you need.
What Is Burial Insurance?
Burial insurance is also known as funeral insurance. It is actually a type of whole life insurance policy meant to cover end-of-life expenses. You may be able to use it to cover medical bills, funeral expenses, and any other debts that are left after you pass.
Burial insurance plans have fixed affordable premiums. They also can be issued fairly quickly and without much hassle. These policy coverages usually don’t exceed $50,000. The policy pays a lump sum soon after the death of the policyholder.
Burial Insurance vs Life Insurance
Since burial insurance is a type of life insurance, it can be a little confusing. However, it’s important to note that life insurance is a broad category of insurance. There are also other types of life insurance including term, whole life, variable, and annuities.
Most other life insurance policies are meant to cover regular expenses for your loved ones when you pass. It helps to continue providing for their needs and paying any outstanding debts. Because of this, life insurance policies can have coverages up to millions of dollars.
The process to get each type of insurance is also different. Burial insurance usually does not require a medical exam, unlike other life insurance policies. Instead, you simply answer health questions on your application.
Do I Need Burial Insurance?
Burial insurance has a specific purpose of covering end-of-life expenses that are one-time and short-term. If you want to help your beneficiary cover these, including funeral expenses, unpaid medical bills, or bills accrued close to your passing, it may be worth considering.
It does not replace income or cover long-term expenses, nor does it function as a retirement plan or investment.
However, you can purchase both burial insurance and general life insurance to meet your needs. This way both concerns can be met and you can rest easy knowing your loved ones will be taken care of on all fronts.
Picking a Burial Insurance Policy
Once you’ve decided to purchase a burial insurance policy, it’s important to find one that works for your needs. You should compare policies from different companies to find the best burial insurance for you.
It is important to consider how much coverage you will need. You may want to outline the potential costs of your funeral, outstanding debts, and any other expenses you would like to cover. This will help you choose a policy that will fully protect your loved ones.
Choose the Correct Insurance for Your Needs
Knowing the difference between burial insurance vs life insurance will help you make sure you choose the correct insurance policies for your needs. While they both have their purposes, it’s important to consider burial insurance to cover end-of-life costs.
Contact USA Life to get more information and request a quote today.