Funeral expenses can be a burdensome cost for family members. Here's why seniors should consider burial insurance.
Burial insurance, or a funeral insurance policy, might be the last thing on your mind right now, but it's never too early to be prepared. Burials can be expensive, with costs reaching around $10,000, and can leave loved ones in a bind when they are least emotionally and financially prepared.
The last thing anyone wants to do is to leave their family with an outrageous debt at a time when they should be grieving. If you're over the age of 50, you might benefit from looking into an insurance policy that will take care of your needs as well as your family's needs in the coming years
Here are several reasons why seniors should consider burial insurance.
Burials Are Costly
Whether someone is being cremated or buried, these services get pricey. Funeral costs will include the funeral or memorial service, viewing, wake, casket, burial location, headstone, embalming, cost of staff and facilities, digging and filling the grave, and flowers. As mentioned, this all adds up to about $10,000. That's insane.
Cremation will have its own costs, around $1,100 dollars, and that doesn't include any sort of service or viewing. At the end of the day, cremation with all the addendum will still cost thousands of dollars.
At the time when a family is grieving over a lost loved one, the last thing they need to be worried about is how to pay for burial expenses. Burial insurance can help alleviate at least some of the stress of what they will be going through.
What Is Burial Insurance?
Burial Insurance is a whole life policy that covers burial and funeral expenses for either one person or an entire family. The value of the policy ranges from $5,000 to $25,000. In the event of the insured's death, the beneficiaries will receive a sum that can be used however they see fit.
For example, once funeral expenses have been paid for, the remainder of the payout can be used to pay for medical expenses or debts.
These policies are permanent insurance options and will never expire. As long as you pay your premium on time, you're covered. And if you ever find yourself in financial trouble, you can borrow against the policy, but this will affect the payout amount to beneficiaries.
Here's something else to consider: burial insurance comes with a 2-year contestability and suicide clause. An insurance company has the option to not pay any beneficiaries if they investigate and find anything suspicious about a death.
Who Benefits Most from It?
This insurance is good for seniors who have a pre-existing condition, as there is no medical exam to take. There is still the chance of rejection, however. Applicants will need to fill out a questionnaire and, while the chances of rejection are lower, some people may still be rejected if they disclose that they have a pre-existing condition.
The people who truly benefit from it are the family and friends who don't have to worry about where they're going to get the money to bury a loved one. The goal is to provide peace of mind and to ensure that all funeral expenses are taken care of in advance.
How Much Is Burial Insurance?
Burial Insurance is sold by brokers, insurance agents, and occasionally funeral homes. The premiums will cost a small amount, around 2-3 dollars, and payment can be scheduled on a weekly or monthly basis. There is also the option of paying in a single lump sum.
Be aware that the older you are, the higher the premiums will be. As a person ages, insurance companies are taking a bigger and bigger risk on them, so this option may become expensive if you wait too long. Look into it now and save in the long run.
Take advantage of competition and shop around. There are a ton of insurance companies out there vying for your attention. You can even use insurance platforms to compare quotes and help find the right policy for you.
Discuss It with Your Family
No matter what you decide on, at least decide on something. It's not the most upbeat of subjects to bring up, but you should talk it over with your family and decide what's right for you.
Grab a pencil and some paper, and take some time to go over any final expenses you can think of. Try to arrive at an estimate of the amount you believe a funeral will cost and work off that. Use that number when shopping around for burial insurance.
Death is a taboo topic in our society, but it shouldn't be. Don't be afraid to discuss it with your family. It may be an uncomfortable conversation now, but it will ensure that your loved ones are taken care of in the future.
Something to Consider
Burial insurance isn't going to be for everybody. But if you're a senior with a pre-existing condition, or you just want to make sure your family is secure financially, it's something to consider. It can provide peace of mind when facing down a problem as unsettling as leaving loved ones in debt.
Finding the right insurance can be tough and will only get tougher to find and pay for as the years go by. There are potential hidden costs and rising premiums to consider. But there are tools out there to help you find the insurance policy that works for you.
Fortunately, you don't have to make this decision alone. We work with all major providers to give you the clear comparisons that you need to make the right decision for you and your family. Just tell us what you're looking for and let us take it from there.
The death of a loved one is already a tragic incident, and what follows is a swell of emotions. There's already enough stress without someone wondering how they're going to bury their spouse or parent.
Look into burial insurance today and give yourself the peace of mind knowing that your family and friends will be taken care of no matter what.