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Is a Burial Insurance Policy Worth Getting? Find Out Here!

on 22 Nov, 2018

Did you know that grief can cause sadness, anxiety, fear, and shock?

If a loved one passes, and you are experiencing grief, you want to prepare ahead of time. We are going to go over what burial insurance policy is and why people should consider getting it. It helps cover the end of life expenses that can burden families.

Want to learn more? Keep reading to find out!

Burial Insurance Policy

Let’s go over some costs you can expect with a funeral. There is a range of prices depending on what you choose. It is worth investing in.

What is Burial Insurance?

Burial insurance is a policy that covers funeral and burial associated costs. This is a type of life insurance. It lifts the burden off of your family.

Funeral costs vary in Canada. Funeral homes sell their services at a high cost. It comes down to the state of the person’s health and their preferences.

A cremation in Canada ranges from $600 and $3,000. If you add a viewing, reserve a chapel, buy flowers and an urn or vault, you are looking upwards of $4,500.

For a casket, cemetery charges, and transportation, it costs in the $3,000 to $4,000 range.

A low-key funeral that’s conservative still could cost $5,500. This includes a reception, simple casket, basic transportation needs, and the cemetery charges.

A mid-range funeral could run upwards of $9,000. This includes a single day visitation service, flowers, reception, average casket, and transportation.

A high-end funeral could cost up to $15,000.

It all depends on your preference and what you’re willing to spend. A lot of Canadians tend to choose cremation, thus becoming a popular funeral type.

Burial Insurance Options to Consider

There are three options for burial insurance in Canada. Consider your health and existing conditions when you choose.

Standard Life Insurance Policy

Life insurance offers funeral insurance in Canada. You will have to answer a detailed health questionnaire and go through a medical exam. This is a solid choice if you don’t have any severe health conditions.

Guaranteed Issue Life Insurance

This life insurance doesn’t need a medical questionnaire or a medical exam to qualify. Anyone can qualify for this life insurance.

Yet, it comes at a higher cost and smaller coverage. There is a two-year probationary period. If you die within this period, your claim isn’t covered.

Simplified Issue Life Insurance

A simplified issue life insurance doesn’t need a medical exam. You will still have to answer a medical questionnaire.

Consider this option if you don’t want to have a physical examination. You will qualify for coverage, regardless of the state of your health.

Saving on Life Insurance

If you’re a non-smoker, in good health, and have a healthy weight, you will save on life insurance. When you apply for burial insurance, you could save some money.

Before you choose a plan, consider what your funeral expenses will be. There is a massive difference in fees from a $5,500 and $15,000 policy.

If you are in decent health, consider applying for traditional life insurance. This is the most affordable option.

How Much Burial Insurance Do I Need?

It’s essential to determine what you need for burial insurance. Do you want a cremation or burial? Will you need to pay for transportation from your home to the funeral home? Headstones can vary in price.

Do you need a few death certificates to close the estate? Some funeral directors will provide minimal services whereas others will go all out. Discuss what you want and cover how much things will cost.

You will need to decide if you want to have a visitation and how long it will be. Choosing a casket is another consideration to think about.

All these elements contribute to the cost of your burial. Review beforehand and decide how much you can spend. Also, find out what insurance covers what.

Extra Factors to Consider

There are age limitations with funeral insurance policies. The general range tends to be between 50 to 80 years old. Make sure you find out what the limitation is before.

The insurer will round your age either down or up. To get the best premium, try and go when they will round down.

For example, if you are 65 years old on New Year’s Eve, buy the policy within the first six months of the year. The will round down to 64.

The highest amount of coverage tends to be $10,000. If you don’t need that much, talk with your broker. They know how to increase or decrease the benefit, assuring you have the best premium.

Did you know that most premiums expire after the beneficiary turns 100? Some policies are flexible. Find out first the length of your premium.

There is protection you can apply for that cover extra medical costs. It’s reassuring to have a lump sum that covers critical illness treatments. If you have a critical illness, you can add protection to your funeral insurance. Check with your broker.

You need to consider where you are traveling. The golden years are favorite times to travel. Yet, certain places are unsafe. If you plan to go to some of these places, you might get a declined policy. Find out from your broker if you plan to travel to a dangerous spot.

Did you know that some insurance companies give seniors a reward if they pay their year in full? Instead of paying monthly, consider trying to pay all at once. This could reduce administrative costs, and you might get a deal from it.

Contact Us Today

We hope you found this article helpful on burial insurance policy. Planning and thinking of the future will help yourself and your family in the long run. Consider purchasing some today.

Want to learn more? Contact us today! We would love to chat with you.

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