burial insurancefinal expense insurance

What Are Burial Policies?

What Are Burial Policies?

Have you noticed TV and Internet ads for burial policies? You may wonder if these would help your family. Take a minute to learn more about how these policies work so you can make a good decision.

They are simply whole life insurance policies that have been developed to help families pay for burials, funerals, and other costs that tend to crop up when a loved one dies. They will not be the right solution for every family, but they can help some people come up with cash at a critical and stressful time.

They usually have a fairly small death benefit when compared to other types of life policies. Most face values range from twenty-five hundred to twenty-five thousand dollars. If you want to buy a policy, you must try to figure out how much coverage you need.

They have also been designed so that it is easier and faster for older people to apply for. You do not have to worry about taking a medical exam either. Some applications do as a few heath questions. These are called simplified issue policies. Others do not ask any health questions, and these are called guaranteed issue policies. There are advantages and disadvantages to each type, so it is important to compare them so you find the best one for you.

A simplified issue policy will usually offer an immediate death benefit once the policy gets issued. They also tend to have lower premiums. If you can qualify for a simplified issue health policy, it will usually be a better deal.

Guaranteed issue policies may not provide an immediate death benefit. There may be a waiting period of 12 – 36 months. Insurers use this waiting period instead of a health application. Rates also tend to be a little bit higher than they would be for simplified issue policies.

Should you buy a burial policy? It is one way of making monthly payments in order to plan ahead for costs that families have to pay when a loved one passes away. Funerals in the US may cost ,000 or more. There will also be other expenses at this time. Some people may have to travel. Others will need to take time off work. Some visitors may have to travel from other cities, and so they must be fed. In addition to enduring the stress of having a family member die, families may have financial problems because of the other burdens.

A burial policy gives this family an easy way to plan for these expenses. The insured person, or a family member, may simply pay a monthly premium. In return, they will know that the policy will give them a cash benefit when the insured person passes away. Burial policies can help families that have to live on a strict budget.

What do you do if you do not need the entire face value of the policy? If the policy beneficiary does not need to spend all of the money on final expenses, he or she is free to keep the rest. Most of the time, the proceeds from life insurance policies will not be taxed either. Burial insurance can also pass on money to survivors.

A burial policy may benefit you. It is important to compare different plans before you make a final decision.

Visit us for more information about burial insurance. You may also want to learn more about term life for older people.