The cost of funerals has increased by an estimated 20% over the past couple of years. This cost is likely the result of shortages and demand coming about due to the Covid-19 pandemic. These prices are not expected to decrease, either. With this reality, many people may feel a little panicked about what to do. Burial insurance provides a helpful way for you to protect your family from debt.
This insurance provides peace of mind to the insured since it will help provide for the costs of their death. Curious to know more about this insurance? Keep reading to find out more!
What Is Burial Insurance?
You might be shopping for it yourself or for a loved one. But, you want to know, what is burial insurance?
Burial insurance is an insurance policy that covers end-of-life expenses, such as funerals and even some debts.
This insurance is similar to life insurance but is more affordable and less flashy. It does not cover all of the same features as a life insurance policy, but it requires fewer prerequisites and no full medical exam.
It is an excellent solution for those who do not have a life insurance policy. It will help ensure your loved ones will not have to pay excessive amounts for a funeral.
What Is the Purpose of Burial Insurance?
This insurance coverage intends to provide a way for everyone to afford a proper burial. But, this is far from its only service. Burial insurance is sometimes referred to as funeral insurance or death insurance.
These names help shed some light on what this service provides. The extent of the coverage is based on a couple of factors. Your overall health and age can make the premium payments higher due to the increased risks.
On average, men can expect to pay a higher rate than most women of equal health. But, the difference is not a significant amount that would make it unattainable.
Most burial insurance plans cover the following:
- Some debts
Again, every plan is different. Older people pay higher premiums each month for similar coverage. This is why it is better to start and sign up at a younger age.
Are You Healthy Enough for Burial Insurance?
Individuals who want to purchase their burial insurance may have a couple of questions. Some people in their 50s or 60s might think they are not in good enough health to pass the medical exam.
The good news is, burial insurance is not the same thing as life insurance. You can apply for burial insurance over the phone or online. Insurance providers will request basic information regarding your health.
These questions include whether you smoke and requests regarding medical history. But, your answers will not necessarily disqualify you. It may impact your price, however.
Once you pass the medical questionnaire, you will complete your application and submit it!
Should You Have Burial Insurance?
Everyone wants to leave their families well off when they are gone. Burial insurance is a good way to guarantee that your family will be cared for.
The perks of burial insurance include a tax-free payout to your family upon your death. And, you will be able to trust that your funeral expenses will not burden them.
USA Life Team is dedicated to helping people like you make these difficult decisions. Contact us today and let us help you find peace of mind!