Dying is not cheap. Or said another way, death is expensive for those you leave behind. As a result of the ever increasing cost of an average burial, purchasing burial insurance goes a long way in providing for those you love beyond the grave.
Burial insurance DEFINITION: a small whole life insurance policy used for burial costs and funeral expenses.
Burial Insurance: what it is, who needs it, where you can get it
Burial insurance is not a pre-paid funeral policy
It is important to differentiate at the outset that we are not referring to a pre-paid funeral policy or to a pre-purchased grave site. Instead, we are talking about insurance that covers a burial.
Burial insurance is about dignity
Here is a common scenario. A person dies. His or her family does not have cash available for a proper funeral for the deceased. As a result, the family is forced to raise the money. This is done in various ways. Some families will hold a fund raiser, such as a car wash, GoFundMe campaign, or church event. Others will liquidate the deceased’s estate. Another option is to put the burial costs on a credit card.
With burial insurance in place the deceased can have a proper burial without placing a burden on his or her family. That is why burial insurance is about dignity. It allows the deceased to be buried and the deceased’s family to mourn without having to go into debt, raise the funds, or liquidate an estate that might not even have the assets necessary to cover the cost of a burial.
With proper planning, burial insurance can provide for all the costs associated with a funeral and provide some extra cash to help close out an estate. Without proper planning funeral costs can wreak havoc on family and friends who simply cannot afford the price tag of laying a loved one to rest. The key is purchasing enough burial insurance to cover your funeral.
Burial insurance face amounts
Burial insurance comes in various face amounts. You can find a policy with a face amount as low as $2,000 all the way up to $100,000. It really depends on how much you believe your funeral will cost. You may also want to consider covering any outstanding debt and other final expenses.
In 20 years an average funeral will cost in excess of $15,000.
An average funeral in 2015 will cost around $9,000. However, in 20 years a funeral adjusted for inflation will probably cost over $15,000.
What type of life insurance is best for burial insurance?
Cash value whole life insurance is best when considering burial insurance. We work with some of the best burial insurance companies in the marketplace.
Often, financial advisors will recommend purchasing term insurance. The problem with term is that the insurance ends when the term expires. Term is great when it comes to protecting a mortgage or when it is tied to the age of a young child. However, term is not the best choice when you need life insurance no matter how old you are when you die.
Whole life insurance provides permanent coverage for the rest of your life. This way no matter how old you are when you die you will still have an active life insurance policy.
Fully Underwritten, Simplified Issue and Guaranteed Issue Burial Insurance
There are three main types of life insurance products. Which is best for you will depend on various factors. The predominant factor on what product you should choose will be based on your health.
Fully underwritten life insurance requires a medical exam. This is the best option for healthier clients or for clients who are looking for face amounts in excess of $100,000.
Simplified issue life insurance requires that the applicant answer some health questions. There are varying degrees of health questions that must be answered depending on the company and the product. The more health questions asked the lower the premium will most likely be. However, for clients with previous health issues, going with a company that asks fewer health questions is often the better route to take in order to avoid being declined for the insurance.
Guaranteed issue life insurance ranges from $2,000 up to $25,000. It is only available for client’s age 45-80 years old. There are no health questions, no medical exams, and very little paperwork. This insurance is ideal for those looking for burial insurance that have a health issue or other lifestyle issue that would normally preclude them from getting life insurance.
For more on the different types of burial insurance, please check out our guaranteed issue vs simplified issue article.
How much can I expect to pay for burial insurance?
Typically the least expensive burial insurance involves fully underwritten insurance. However, not everyone wants to take an exam or can qualify for this type of insurance. Also, fully underwritten life insurance starts at $25,000 in coverage so clients looking for lower face amounts need to look elsewhere.
The middle ground is simplified issue insurance. This is the most popular choice for clients looking for burial insurance. Simplified issue is still very affordable for those who have not had a serious debilitating disease, such as cancer, heart disease, or stroke.
For those clients who have had a history of serious health problems guaranteed issue is the optimum choice for burial insurance. Pricing is based on age and gender (depending on the state you are in).
Sample Guaranteed Issue Burial Insurance Quotes
Sample quotes provided from A rated carriers as of October 2014. Rates are subject to change.
51 year old male $10,000 face amount for $39
51 year old female $10,000 face amount for $29
56 year old male $10,000 face amount for $47
56 year old female $10,000 face amount for $37
JustBuryMe is an insurance agency that focuses entirely on burial and final expense insurance, period!
Our primary goal is to help you secure the coverage necessary so that you can get on with your life with the peace of mind knowing your family will not be left with unnecessary financial hardship due to your advanced planning.
Give us a call today to find out the great burial or final expense plans your qualify for. We are here to serve!