Cremation Insurance is a valuable type of whole life insurance policy for those wanting to be cremated upon their death. When making final arrangements, one of the first considerations is whether you prefer burial or cremation. In 2017, cremation surpassed burials in the United States for the second year in a row meaning cremation insurance plans are something to consider as the senior population continues to grow. One of the factors in this growth is the fact that people are including memorial services with cremation where in the past, funeral services were associated primarily with burials. Another huge reason for the rise in popularity of cremation is simply that it is less expensive. When families are faced with decisions about their loved ones, often times the cost of cremation vs burial pushes them to choose cremation if their family member didn’t leave specific wishes behind. A cremation insurance policy is something you could purchase for yourself to protect family members from financial hardship upon your passing or children can even buy it for their parents if they can’t afford to pay for it themselves.
Cost of Cremation
Cremation Insurance Plans are becoming more well known due to the increase in people choosing cremation over burial. The cost of cremation is RISING. Cremation Insurance can be compared to funeral insurance because it is intended to pay for your funeral expenses. It is becoming more common for the families of loved ones who are cremated to hold memorial services and even a viewing prior to cremation. Planning for these options ahead of time will ensure that the family members who receive the death benefit from cremation insurance plans have enough money to follow through with your wishes. Cremation Insurance should be for an amount large enough to pay for the cremation along with other possible options like preparation of remains, an urn, storage of ashes in a memorial, and viewing services prior to cremation. Even adding these services, cost of cremation is less than burial.
Typically, you can keep cost of cremation services under $5000 with the actual cremation costing less than $2000. By comparison, burial expenses are averaging between $8000-10,000 after all is said and done. There are more add-ons to pay for with burial such as the casket, plot, cost of burial, body preparation, and a headstone. After considering the cost of cremation vs burial, if you or your family members do not have strong feelings of preference for burial based on religious beliefs, family tradition, or personal convictions, cremation may be a viable option, especially for those on a budget. Some people also like the idea of ashes after cremation being put in a unique or sentimental place as a memory for the family. It is a highly personal decision so be sure to make your wishes known to family members. Assurance life can custom design a cremation insurance policy that reflects your intended cost of cremation services wanted.
Cremation Insurance Plans
Once you have chosen cremation as your personal choice for handling final arrangements, you will want to decide how much to take out your cremation insurance for. Knowing that a minimum of $5000 is needed, after that you want to consider whether you want any other final expenses paid for by your cremation insurance. Some people want to leave a little extra money behind for paying debts of to leave cash to loved ones. Keeping that in mind, often times, cremation insurance plans are between $3,000-8,000. Cremation insurance is a type of whole life insurance plan. Whole life insurance is a type of insurance that is taken out for people who want the ASSURANCE that their plan will be there when their family members need it. For this reason, cremation insurance plans are good for your whole life as long as payments are made. Also the payments stay the same and are never raised, regardless of a change in health or as you age. Additionally, approval is based on age and health and the good news is that everyone under the age of 86 is approved for some type of cremation insurance policy when they apply. Cremation cost are rising so make sure your Cremation Insurance Policy is enough to cover all your final expenses.
Types of Cremation Insurance Plans
After considering the cost of cremation vs burial and going forward with a cremation insurance policy, the application process is quick and easy. The best way to know you are getting the best whole life insurance plan is to use a broker such as Assurance Life. By using a broker, you can rest assured that you are getting the biggest death benefit at the lowest cost with reputable companies such as Sentinel Security Life, Liberty Bankers Life and AIG. Brokers work with numerous companies so they get the best cremation insurance plan to fit your exact age, medical profile, and death benefit amount. Once you fill out a short yes or no answer health questionnaire, the broker is able to place you with the company that offers the best plan. About 90% of the time, your cremation insurance will be able to start on DAY ONE with what is called a preferred coverage plan. This is for the majority of people whose health history doesn’t put them in jeopardy of complications in the first two years of having their cremation insurance.
Thankfully, there are still great options for those who might have a recent or past health problem that causes them to be high risk. The other two types of plans are graded and guaranteed issue life insurance. A graded life insurance plan is the next best plan after preferred. Graded life insurance insurance plans are phased in over two years and as time goes on, if the insured should die, the plan pays out a larger amount of the death benefit with the full amount being paid after two years. For example, if the insured dies in the first year, some companies might pay 40% of the death benefit and then it would go up to 75% in year two. With the third tier of coverage called guaranteed issue, the death benefit has a waiting period of two years before it would be paid out unless death is due to accidental causes. The good news about this plan is that everyone is approved- no questions asked- as long as they are under 86 years old. This is reassuring for those with a poor health history who have been declined in the past.
Cremation Insurance Policy- Sample Rates from Sentinel Life
Are there questions you still have about the cost of cremation vs burial or do you simply need to get going on securing some type of whole life insurance plan so your final expenses are paid on behalf of your family members? There is nothing more time sensitive than making sure your family members know your final wishes and putting cremation insurance or funeral insurance in place so you have the peace of mind that your family is protected from the financial burden that can come from paying final expenses. If you are still unsure of your final wishes, Assurance Life can help you compare quotes for both and you may be surprised to find out how affordable whole life insurance policies can be and have enough in the budget to get a cremation policy in place even as you continue to think through your final wishes. Whether you settle on a cremation insurance policy or low cost burial insurance, get started today.