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Selecting Funeral Insurance

Different kinds of burial insurance.

 

Selecting Funeral Insurance and the kind of policy to buy can be a complicated process. Because of this, we will explore each type of funeral or burial insurance policy available; so that you can make a well-informed decision.

Type of Funeral Insurance Advantage Disadvantage
Pre Need Funeral Insurance Paid Immediate Benefits  Usually a whole-life insurance policy
Final Expense Insurance Accumulates cash value to cover any end of life expenses Beneficiaries must follow Specific instructions for use of funds 
Burial Insurance Payouts can be used for any end of life expenses Premiums can increase and the policy could expire before it death
Guaranteed Acceptance Burial Insurance Anyone can qualify regardless of health status A waiting period of one to three years  until maturity

Pre-need Funeral Insurance 

This type of insurance is purchased directly from the Funeral Home or an Insurance Agent who sells the insurance for the Funeral home.  This type of insurance provides payment for a funeral and services before death.

Picking Funeral Insurance of this type includes a burial plot, casket or urn, gravestone or marker, embalming or cremation, limo or funeral cars, and flowers. Moreover, with Pre-need insurance, buyers purchase the funeral before the death.  Meanwhile, either a lump-sum payment or payments can begin on a monthly basis for a number of years.  To clarify, the benefits of pre-need funeral insurance include:

  • Fixed funeral prices
  • Relieves family from making heart-breaking and difficult decisions about final arrangements
  • Benefits paid immediately

In conclusion, Pre-need Funeral Insurance, normally a whole-life insurance policy, stays in effect for your entire life. Finally, if the death of the insured precedes the final insurance policy and where jurisdictions allow, the name of the funeral home can be included as one of the beneficiaries of the Insurance Policy. 

Final Expense Insurance

This is an insurance policy in which the benefits of the policy can can pay for the Funeral, burial, cremation and other expenses owed by the deceased.  To purchase a Final Expense Insurance Policy, an individual must contact an Insurance Company and talk with an Insurance Agent.  The Final Expense Insurance is a form of permanent life insurance, which remains in force for as long as premium payments occur, and which do grow in value.  

Specificly, Insurance coverage for Final Expense Insurance across the insurance industry ranges from $5,000 to $25,000 as that is the cost of a Funeral, burial or cremation.  A few Insurance Companies offer as much as $50,000 to $75,000 for Final Expense Insurance policies, but those are rare. Please note that Final Expense Insurance costs less than a traditional life insurance policy simply because of much lower coverage amounts. The cost will depend on the person’s age at the time of the purchased policy.  Age increases the cost.

Let one of our experts explain why Final Expense Insurance is a smart investment.  

If an individual purchased an ample insurance policy to cover expenses after death, then additional Funeral insurance may not be required.  However, the type of insurance must be double-checked because term or universal life insurance may expire before the insured passes away.  On the other hand, if an individual possesses no life insurance and the family can’t afford to cover the costs of a burial, a good choice becomes purchasing a Final Expense Insurance Policy.

Advantages of Final Expense Insurance include:

  • Purchased to cover all end of life expenses, not just the funeral.
  • This Whole Life Insurance Policy never expires.
  • Almost everyone qualifies for coverage for this type of policy.

Consequently, the Final Expense Insurance policy provides an area for the insurer to document his or her final wishes for the Insurance money’s use after death.  Finally, buyers should read the fine print on policy documents as some whole-life policies terminate at 100 years.

Burial InsuranceBurial Insurance 

This insurance is usually sold to individuals between the ages of 50 and 85. Disbursement is paid to the beneficiary of the Insurance policy upon the death of the insured. To be specific, Burial Insurance policies range normally between $5,000 and $10,000. Selecting a Funeral Insurance Policy can pay for any type of end of life expenses and is not limited to funeral expenses of cremation and burial costs. Advantages of Burial Insurance include:

  • This insurance covers all end of life expenses.
  • A good choice for people who have no other life insurance.
  • Ensure that loved ones do not incur unnecessary expenses at the time of their loved one’s death.

In conclusion, burial insurance can be a Term Life Insurance Policy and those policies can expire.  In addition as one ages, the premiums can increase with age.


Guaranted Acceptance Burial InsuranceGuaranteed Acceptance Burial Insurance 

This is a Burial Insurance Policy that provides coverage to anyone — regardless of age, health, or any other risk factor. Selecting a Guaranteed Funeral Insurance policy provides funeral and burial Insurance for people that are not eligible for other types of insurance due to high-risk factors. Because of the risk factors of the person being insured, this type of policy will definitely be more expensive. Guaranteed acceptance burial insurance has a waiting period from one to three years before it will go into effect.

To further identify Guaranteed Acceptance Burial Insurance. it should be noted that this type of insurance does not need a medical exam or written health history to qualify. To keep the policy in effect, the premium payments must be paid on a monthly basis.  Advantages of Guaranteed Acceptance Burial insurance includes:

  • This type of policy ignores previous denial of insurance for age and health.
  • No medical exam or medical questionnaire needed.

In conclusion, if an insurer dies before completion of the one to three years waiting period, the insurance company will return the premiums and not the full payout.