When you lose a loved one, you don’t want to think about finances. You want to remember the person you lost and grieve for them.
Finances can make a stressful, saddening situation even worse. You will have to bury your loved one and incur funeral costs.
Funerals cost thousands of dollars. Some funerals cost well over $10,000. You don’t want to stress about accumulating that money upon your loved one’s death.
Burial insurance lifts the financial burden of funeral costs. This insurance policy helps you focus on remembering your loved one. You won’t have to scramble to raise funds.
What Is Burial Insurance?
Burial insurance is a whole life insurance policy designed to cover funeral costs. You can obtain a benefit ranging from $5,000 to $25,000.
A burial insurance policy can cover one member of the family or every family member. The higher the death benefit, the more coverage you receive.
You only receive the payout after someone’s death. The withheld payment ensures the money will be available when you need it.
You can select from various burial insurance policies. We’ll outline some burial insurance tips to consider before choosing a policy.
Burial insurance comes with lower premiums than most insurance policies. That’s because the death benefit is minimal, relatively speaking.
Most policyholders will only pay $50-$100 per month for burial insurance. A higher death benefit comes with higher premiums.
Make sure you can stay on top of the premium payments. Only incur a policy that you can comfortably pay each month.
The Loved One’s Health
Insurance companies will have the loved one take a medical test before giving the policy. People with underlying health problems lead to higher premiums.
Higher premiums may make the policy unjustified. Everyone has a tolerance level for what they can afford.
Premiums also increase for loved ones who use tobacco products. Healthy people get lower premiums.
Your Loved One’s Age
Older patients tend to die sooner. A 40-year old has more years to live than an 80-year old. Insurance companies weigh this factor when assigning premiums.
You will pay higher premiums for an 80-year old than a 40-year old. You’ll only have to make a few payments for older family members.
You’ll make more payments for a 40-year old, but these premiums are significantly lower.
Inflation Influences Premiums
Locking a policy for a younger person protects you from inflation. Insurance companies tend to raise premiums based on inflation.
High inflation rates suggest higher premiums in the future. You can secure an affordable premium now, so you don’t pay more later.
The Death Benefit
A higher death benefit comes with higher premiums. Consider how much you’ll spend on funeral costs for your loved one. If you can get away with a frugal funeral, you can opt for a lower death benefit.
Keep inflation in mind when selecting a death benefit. As discussed earlier, premiums rise due to inflation. However, the death benefit will have less purchasing power over time.
$10,000 buys you less today than it did 20 years ago. The same truth will hold strong 20 years from now. Paying for a higher death benefit helps you fight off inflation.
Apply for Burial Insurance
A proper burial acts as a final goodbye. You don’t want to stress about money during these delicate moments.
A burial insurance policy provides financial coverage for an honorable burial. We can act as your burial insurance guide.
We various burial insurance policies to match your needs. You can apply for burial insurance to learn about our premiums and benefits.