When a loved one dies, it is helpful for the family when there is insurance for burial expenses. Burial expenses can range from the funeral home services, actual items needed during for burial such as a casket and sometime embalming tools, the burial plot and headstone, and other common needs such as transportation of the body and more. Families can be overwhelmed with the long list of final expenses and having insurance for burial expenses makes it possible to focus on the memorial of their loved one rather than the financial burden of how to pay for everything.
What is burial insurance?
Burial insurance is a whole life insurance policy intended to pay for the burial expenses when a person dies. Often times the beneficiary is a spouse, child, or grandchild of the insured. It is important with a burial insurance policy that the beneficiary is aware of the wishes of their loved one so that the funeral arrangements are carried out the way they wanted. Insurance for burial expenses is available to anyone of any age up to 85 years old. In some cases plans can be issued for those up to 89 years old. Regardless of the insured’s age, whether the insurance policy is to cover a child’s burial insurance plan or a whole life insurance plan for an older senior, burial insurance pays for burial expenses.
Features of Burial Insurance:
Burial insurance is a whole life insurance policy which means that it lasts for your whole life and never expires. This provides peace of mind that your insurance for burial expenses will be there when your family needs it to pay your funeral costs. Some life insurance plans expire so it is important to know that your burial insurance won’t expire.
Premiums never raised-
Once you go through the application process for your whole life insurance plan and are approved for a policy, when your monthly premiums begin they are guaranteed for life. This means as you get older or develop medical problems that can come from age, your monthly premiums will stay the same.
Policy cannot be cancelled-
Another feature of insurance for burial expenses is that the whole life insurance plan cannot be cancelled, even if you develop a serious medical condition or have had the policy for many, many years. Once your plan is in place, as long as monthly payments are made on time, the policy can never be cancelled.
Steps to buy burial insurance: It’s as easy as 1-2-3!
Complete a request for a free quote including the apply now portion at the end of the process. This provides Assurance Life with enough information to get the application started.
Assurance Life will call you to follow up regarding your application and confirm the details of your application including your age, quick yes or no health questions, and the amount of burial insurance coverage you are seeking.
Afterward, Assurance Life places your application with the company that fits your needs based on your age and health. Approvals with each company are based on age and health so it is important that Assurance Life knows which company has the best plans for people using their exact needs at the time they apply. Usually approval comes within an hour or so up to 24 hours in some cases.
Types of Burial Insurance
When people buy insurance for burial expenses, there are three types of plans they may qualify for. The average policy amount is about $15,000 which covers the cost of the average funeral and remaining expenses. Plans are available in a wide range of amounts from $5,000-50,000 if your needs are different. Finding out which of the three types of whole life insurance plans you qualify for is based on age and health when you apply.
About 90% of applicants qualify for preferred coverage for their burial insurance. These clients have either good health or perhaps a minor current or past health issue that doesn’t affect their approval for the highest level of whole life insurance. Preferred insurance for burial expenses is considered DAY ONE immediate coverage because the plan goes into effect as soon as the first payment is received. If the insured dies after that time, the full death benefit would be paid out.
For those who may have some health problems that prevent approval for preferred coverage, there are two other life insurance plan options. One of those is graded coverage. This type of plan phases in the death benefit payout over the first two years and converts to a full payout after that two year period. For example, one company might pay out 30% of the death benefit if the insured dies during year one and then pay 70% if the insured dies in year two. Then after that time, the full benefit would be paid out if the insured passes away. This is still a great option for those who might have a few health problems.
Guaranteed Issue Plans
The good news for those seeking insurance for burial expenses is that EVERYONE 85 and under can get approved for some type of insurance plan. Even if you have had major surgeries, cancer, prior declines for life insurance, or other serious health complications, you can protect your family with some type of life insurance. The plan for people in these situations is called a Guaranteed Issue Plan. This is just what it sounds like, guaranteed approval! There are no medical questions and everyone is approved. The drawback is that the rates can be higher and there is a two year waiting period before the insurance company would pay out the death benefit. However, something is better than nothing and the two years will fly by and you will have full coverage for your family to pay burial expenses when the time comes. Also, if death occurs due to accidental causes, the full death benefit is paid out even in the first two years. If death occurs within the first two years for health reasons, your family is refunded 100% of premiums paid plus interest. So your money paid in is protected during that two year waiting period.
Insurance for burial expenses is an important provision to have in place for you and your family. We have something for everyone, every age, every budget.