What is Funeral insurance?
Funeral insurance also called burial insurance is a type of insurance that pays for the final expenses after you die. It is a type of life insurance policy that has a smaller payout that pays for final expenses such as a funeral or cremation, medical debts, credit card debts, legal expenses, personal loans, mortgage loans, or any other outstanding debt. The policy amount, which is a tax-free amount, is paid out to the beneficiary, is usually between $5,000 and $30,000. The payments range as low as $6 per week if you sign up between 50 and 55 but will increase if you sign up as you get older.
Why do you need Funeral insurance?
There are several important reasons why you should purchase funeral (burial) insurance:
- You are unable to pay thousands of dollars for your funeral
- You currently do not have any life insurance or funeral insurance
- You only have life insurance through your employer
- Cost of funerals continue to increase
- You do not want to leave a financial burden on your family
A lot of people do not have the ability to pay thousands of dollars for their funeral. Even if someone did have some money to cover the cost of their funeral, funeral costs continue to increase. According to the National Funeral Directors Association, funeral costs increased from 2014 to 2019, on average, by 7%. This is where funeral insurance helps you cover those costs. In addition, if you do not currently have funeral insurance or life insurance you should consider purchasing funeral insurance. Also, keep in mind if you have life insurance with your employer and you retire or terminate it will be very expensive to transfer over that life insurance. Purchasing funeral insurance allows you to not leave your family with a financial burden and gives them peace of mind.
When do I need to buy Funeral insurance (Burial insurance)?
Funeral insurance is typically promoted to seniors. The premium payments will be higher if you purchase the insurance as you get older, however, the premium amount will never increase.
How does it work? Who gets the payout?
Another benefit of funeral insurance (burial insurance) is that you do not need to take any medical exams. Obtaining coverage is typically determined based on your answers to a health questionnaire which is part of a short application that you will need to complete. Once you pay your first premium your policy is in effect.
In the event of your passing, the beneficiary you designated will get the lump sum payout to take care of your final expenses.
Obtaining coverage is quick and easy. Call me at (800) 513-8050 to receive a no obligation consultation and quote.
We look forward to hearing from you.
We have answers to other frequently asked funeral insurance questions on our Funeral Insurance FAQs page.