Sitting around the dinner table talking about how does funeral insurance work isn’t the most comfortable topic of conversation. But as the middle-age and senior generations continue to grow and have less for retirement with longer life expectancy, more and more people are looking to funeral insurance to plan ahead. In order to understand how funeral insurance works, it is important to know the different ways funerals are paid for.
Some people simply have money saved to pay for their final expenses including funeral costs upon death. The problem with this plan is that if a long term illness occurs or someone outlives their savings account, some families are left without enough money to pay for burial expenses. Another approach is a term life insurance policy to pay for funeral costs.
The challenge with a term life policy is that it expires and many clients are left without proper coverage when they need it most or have to renew at extremely high rates when their term policy runs out. Sometimes people plan ahead for their funerals directly with a funeral home. The problem with this is that there can easily be additional expenses that arise and this limits how the family may use the death benefit.
They aren’t able to do more than bury their loved one without any flexibility about choices or any way to pay for remaining expenses left by their family member. These examples show why funeral insurance is the best way to plan ahead for funeral costs and final expenses.
What is Funeral Insurance?
Funeral Insurance is sometimes called whole life insurance, funeral insurance, burial insurance, and final expense insurance. A funeral policy is a whole life insurance policy that remains in effect for the clients WHOLE LIFE as long as the monthly payment is made. The policy is intended to pay for funeral costs, debts, and any other final expenses upon your death. It can also include amounts to be left for family members in addition to paying final expenses. Benefits of Funeral Insurance policies are:
- Funeral Policies are good for your WHOLE life
- Funeral Policies can’t be cancelled due to your age or health
- Funeral Policies build cash value
- Funeral Policies premiums will NEVER increase
- Funeral Policies death benefits will never decrease
Why Funeral Insurance?
There are many benefits of funeral insurance. Unlike other types of life insurance, once the policy is in place, the monthly rate is never raised, regardless of health or age. Also, the death benefit can be used however it is needed, not only to pay funeral costs but also any other expenses that are left. Burial insurance never expires making it a better choice than term insurance. Most importantly, you will have the peace of mind knowing you can count on the money to be there for your loved ones when they need it the most to take of your final expenses.
Steps to Getting Funeral Insurance
Assurance Life makes it easy to get started with your funeral insurance policy. Some agents only work with one company but Assurance Life works with numerous nationwide companies such as Mutual of Omaha, AIG, Liberty Bankers Life Insurance, and more. Once we complete a short application, Assurance Life fits your needs with the company that gives you the most coverage at the lowest rates.
How to Choose a Funeral Insurance Benefit Amount
Part of getting funeral insurance is choosing how much coverage to secure. The first thing to do is determine the funeral cost in your area. Assurance Life is able to help you with this information. Next, you will want to factor in any debts that will need to be paid upon your passing. The last consideration is whether you would like to leave additional monies to family members. Sometimes how much coverage to buy is determined by the budget available for the monthly payment.
Whether you are on a budget or can choose your death benefit freely, Assurance Life can help find the best final expense insurance for your financial needs. Important to use a broker who has access to multiple companies and NOT just one company with one plan.
How Health Affects Funeral Insurance
Some people wonder if their health status will impact whether they can get final expense insurance. The good news is that whole life burial insurance is available to EVERYONE age 85 and under regardless of current or prior health problems. The way it works is that there are three levels of coverage. For those in good health, preferred coverage is available which begins on DAY ONE of your policy starting. The next level is graded coverage. This type of whole life insurance is for people who have some current or previous health problems. The death benefit is phased in over a two year period and after two years, it is paid out in full upon death. The final coverage is for those with serious health issues and is called GUARANTEED ISSUE.
This is just what it sounds like- guaranteed approval for ALL applicants 85 and younger. There is a two year waiting period to receive the death benefit but if the insured dies before that time, the premiums are refunded in full plus interest. With ALL levels of coverage, if death occurs due to accidental death, the death benefit is paid in full. Burial insurance is a wise investment and the sooner you purchase your plan the cheaper it is.
In most cases, burial insurance is at its lowest cost RIGHT NOW because rates are based on age and health and nobody’s getting any younger and rarely are you getting healthier. Assurance Life’s FREE QUOTE is simple and easy to get with just a few questions needing to be answered. All companies used by Assurance Life have NO MEDICAL EXAM needed for approval. Get started today to get peace of mind for you and your family that your final expenses will be taken care of through funeral insurance set up to find your needs.