Burial insurance, also popularly known as final expense insurance, is an easy way to meet a departed family member’s funeral expenses. Gary P. Cubeta of Insurance for Final Expenses says that independent agents get many inquiries from people after reading about the Global Life Insurance reviews and others on their website.
What is Burial Insurance?
Burial insurance is not entirely different from life insurance. The benefit amount is smaller yet large enough to meet the final arrangements and pay off the final debts like medical bills, mortgage loans, personal loans, and credit card bills, if any. Most families can benefit immensely from burial insurance and don’t have to be clueless about how they will meet the dear departed’s final expenses with the limited resources at hand.
Who Benefits the Most?
Burial insurance is tailor-made for seniors, people aged between 50 and 85 years of age. However, today, several companies offer burial insurance for people aged 30 and above, primarily whole life insurance policies, with no term and pay-out typically at age 100.
Every senior should research such burial insurance plans because such end-of-life plans come in handy for their loved ones who don’t have to worry about the final expenses. Remember that each month’s or year’s delay only adds to the cost of such policies. Also, there’s a maximum age limit for eligibility.
When you sign up, the younger you are, the cheaper the cost (premiums) and the lower the risk. If you’re already over 50, burial insurance should certainly figure in your options while drawing up your will and include your power-of-attorney and beneficiaries to final expense insurance.
Final Expense Insurance Costs
It is easy to work out the monthly pay-outs towards the premium for your final expense insurance. For instance, suppose you are 46 to 50 years of age and want to take such a policy. For a sum of $10,000, your monthly premium can be as low as $14 if the insurer determines that you are in good health. However, if you don’t want the insurer asking any questions about your health or investigating it, all you need to do is pay an additional $4.
Moreover, many 50+ clients sign up for final expense insurance after reading the Global Life Insurance reviews and other information about related insurance providers. They are then relieved with the knowledge that their loved ones don’t have to worry about the burial expenses.
Average Coverage for Men and Women
With an average funeral cost pegged at $9000 or lower, the most popular choice for men and women is $10,000 coverage for a decent funeral. However, it will depend on the type of final arrangements you want, with some spare amount left over to pay the medical bills and misc debts and expenses. Invariably, women pay a lower premium than men, though the coverage sum is the same. However, the rates of men and women increase with age.
Types of Final Expense Insurance
Insurance companies typically offer two types of final expense insurance: pre-need and standard, though both help you plan to cover all the final arrangements.
Standard Final Expense Insurance: The standard type of coverage is generally offered as a whole-life policy, and the sum insured is paid to the beneficiaries. Standard includes expenses for:
- Funeral Home Services
- Cost of Casket
- Digging and Closing of Grave
- Vault, Headstone, Flowers, obituary notices
- Cremation, and Urn
With this coverage, the beneficiaries have the liberty to choose the service providers and pay them directly. How much they pay for what is left to their discretion. They may want to set aside some money to cover:
- Medical Bills
- Legal Fees
- Credit Card Bills
- Mortgage or personal loans
Pre-Need Final Expense Insurance
Most insurance companies offer Pre-need final expense insurance coverage, so do a few funeral service providers. The only difference is that the insured sum is given to the designated funeral service providers directly. The money is paid out immediately after death occurs.
The benefit with pre-need final expense insurance is that you pay for the services at today’s cost, which is cheaper than what it would be, say, 10 years from now. The actual expense should be taken into account in this type of insurance. If the actual expense is lower than the insured amount, the deceased’s loved ones may not have any right over it. The entire sum might go to the funeral service provider.
Summing it Up
Final expense insurance is a great way to plan for anyone’s final expenses without leaving their loved ones to take care of all the expenses. The key factors are age, gender, and the sum assured.