Are you currently looking for ways to protect yourself and your family from unexpected, high-cost funeral expenses? Unfortunately, the cost of a traditional funeral is currently over $9,000 and rising. If you want a life insurance policy in place to cover your funeral expenses and other final expenses, a funeral insurance policy is your best bet. Plus, a funeral insurance policy can ensure your family is protected at time when they shouldn’t be burdened with financial stress. Remember, if you don’t plan ahead NOW, your family will have to step in and nobody wants that.
Let’s dive in and look at the what, how, and why of funeral insurance policies. Hopefully, we can help answer some of the questions you may have. Of course, you can call us at 800-517-0810 and we can assist you at any time.
What is a Funeral Insurance Policy?
A funeral insurance policy is a small, whole life insurance policy used to cover someone’s final expenses after they pass away. ALL funeral insurance policies are whole life insurance. In fact, burial insurance, final expense insurance, and cremation insurance for seniors are other common terms for this type of protection but all are whole life insurance as well.
Here are some benefits of a Funeral Insurance Policy:
- Policy lasts your whole life
- Your premiums will NEVER increase
- Your policy won’t cancel as you age
- No medical exams are EVER required
- Provides peace of mind
- Plans available from $5,000 to $100,000
- Simple applications & flexible underwriting
- Affordable monthly payment plans
- Builds cash value
What makes a funeral insurance policy unique?
Funeral insurance policies are unique because the application process is super simple and short compared to other traditional life insurance applications. In fact, most burial insurance companies will have a decision on your application either instantly or within 24 hours. Also, underwriting guidelines are flexible which allows MOST applicants to get the policy they apply for. We even have access to some companies that don’t ask any health questions on their applications and everyone is guaranteed approval.
Levels of Coverage Available
When applying for a funeral insurance policy your age and health will determine which level of coverage you will qualify for. Here are the three most common levels of coverage in funeral insurance plans:
Level Coverage – This type of coverage is the best funeral insurance policy plan you can be approved for. Level coverage or preferred coverage starts immediately after your first premium payment is received by the life insurance company. Once again, level coverage starts IMMEDIATELY with NO WAITING PERIOD. Plus, level coverage plans have the lowest premiums for funeral insurance policies as well. Depending on the company, level coverage funeral insurance policies are available up to age 89 years old.
Graded Coverage – A graded funeral insurance policy will come with a partial death benefit payment over the first two years. For example: Let’s say you pass away within the first year of taking out your policy. Depending on the company, most graded plans would pay out 30% percent of the death benefit in year 1 and 70% in year two. After two years, the entire death benefit amount would be paid out. Of course, with any funeral insurance policy if you were to die because of accidental causes, the full death benefit would be paid out immediately without a waiting period. A graded coverage plan is a great option for those who have some health issues and who can’t get approved for level coverage.
Guaranteed Issue Coverage – Guaranteed Issue whole life insurance plans are perfect for those with severe health issues. Everyone is approved and is GUARANTEED acceptance. The application process is super easy since NO health questions are asked. A few companies offer these plans between the ages of 50-85 years old. However, it’s important to understand that ALL guaranteed issue funeral insurance policies come with a 2- year waiting period.
This means you must wait 2 years before the full death benefit would be paid out. Most companies do pay you all your money back plus 10 percent if you were to die within the first two years of taking out your policy. As with graded coverage, if the cause of death is due to an accident, the waiting period is waived and the death benefit is paid out in full, even in the first two years.
Some companies offer a modified coverage plan but it’s rarely in your best interest to consider it. Assurance Life can answer any questions you might have about the different coverage available.
How much Funeral Insurance do I need?
Once you have thought over how the application process works and the levels of coverage you might qualify for, it is time to think about how much funeral insurance you need. Your age plays a big factor in deciding how much life insurance is needed. If you are currently in your 50’s, we highly recommend you taking out a little more than you think you might need. This is because we really don’t know what a funeral will cost 30-35 years from now. If the average funeral expense is around $9,000 right now, what will it be in 30 years?
Another factor besides your age to consider as you decide on a death benefit amount is the million dollar question- WHAT do you want the funeral insurance policy to do for you? Deciding the answer to that question can help you narrow down a policy amount.
Does the policy only need to cover your funeral expenses?
Are there additional final expenses you want paid from your funeral insurance policy?
Would you like to leave money behind for a loved one using the death benefit paid from your life insurance policy?
Once you examine your needs and wishes, Assurance Life can help you figure out the best amount of funeral insurance that would protect your family so they can carry out your wishes covering their funeral expenses.
How to find the Best Funeral Insurance Policy
So you have a better understanding of how the funeral insurance works and what information is needed to choose the policy amount. Now you need to know how to find the best policy for you. The most important factor is the ability to compare companies. Assurance Life always recommends shopping several companies before buying your funeral insurance policy. This is because each life insurance company will have different underwriting guidelines, so it’s important to find the perfect company match that fits with YOUR individual health situation.
If you want to save a ton of time and money during the buying process, we HIGHLY recommend using an independent broker like Assurance Life to assist you. Independent brokers represent several life insurance companies so they do ALL the shopping for you. Assurance Life works with over 25 of the best life insurance companies in the country, so finding the best priced plan and BEST policy for you won’t be an issue.
Plus, since each funeral insurance company will view your health conditions differently, we take a look at your individual health profile and are able to place you with the one that meets YOUR exact needs.
Finding the correct funeral insurance policy will ensure you receive the BEST price and the BEST coverage to protect you and your family.
Regardless of the season of life you are in, Assurance Life has you covered. One of our licensed agents can walk you through this process, answer any remaining questions you might have, and help you get protection in place for your family TODAY. Don’t delay… let us help you today…