Given that a global pandemic has wreaked havoc on the world over the past two years, the number of Americans without life insurance continues to surprise. Approximately one-quarter of all Americans do not have life insurance coverage. An even greater share of the population is considered underinsured.
The primary reason that Americans are forgoing insurance is that they cannot afford it. Ironically, burial insurance and other plans relieve financial stress.
Read on to learn how final expense burial insurance can help your family’s financial situation. Explore topics such as burial insurance for seniors and what final expense insurance covers.
Why Do You Need Final Expense Burial Insurance?
Unfortunately, death is expensive and places a significant financial burden on families without insurance. According to the National Funeral Directors Association, the average cost of a funeral exceeds $7,800.
There are many other expenses to consider. You will have to arrange for a memorial service and the casket’s transportation to the burial site.
If you are having an open casket, embalming services are required to preserve the body. At the cemetery, you will have to pay for a burial plot and headstone. These costs add up quickly and can total tens of thousands of dollars.
What Is Burial Insurance?
This is a life insurance type that helps pay for end-of-life expenses. There are many reasons why this is an appealing life insurance type.
For starters, the policyholder does not need to receive a medical examination to qualify for a plan. There is a medical questionnaire that asks simple questions of the applicant. The medical survey asks questions such as whether you smoke cigarettes or have any pre-existing conditions.
Once approved, you are eligible to receive a cash benefit to cover final expenses. There are some limiting factors to consider. The cash benefit can only be used on approved expenses.
Also, there may be a window before collection is possible. Some companies require the policyholder to make premium payments for multiple years before insurance kicks in. Other policies only provided coverage until a person reaches a certain age.
You can shop for burial insurance plans at a set coverage amount. There are plans valued at $5,000, $10,000, or more. Burial insurance plans have cash benefits that are much lower than other plan types. This makes them more affordable from a monthly premium perspective.
Other life insurance plans are designed for income replacement. They are intended to provide a cash windfall in the event of a loved one’s unexpected passing.
The money from term life insurance plans and other types can be used on a wider range of expenses. This is opposed to final expense plans, which are to be used strictly for funeral and burial costs.
Do You Need Burial Insurance?
It is made clear from this article that burial insurance or some form of coverage is necessary. Funerals are far too expensive to ignore and not plan for. You will leave your family in a financial bind without proper planning.
Burial insurance is affordable and provides a suitable cash benefit. If you want to learn more about final expense burial insurance, contact us today to speak with a professional.