How to Choose the Right Burial Insurance
Burial insurance—also known as final expense insurance—is an affordable way to make sure your funeral costs, credit card debt and other expenses don’t fall on your loved ones after you’re gone. While the cost of your funeral might not be something you’re currently thinking about, being prepared can make all the difference when the time comes.
Similar to traditional life insurance, you pay regular premiums for a set amount of final expense coverage, which is then paid to your beneficiary when you die. The payout can be used to pay funeral costs, medical fees or other unpaid bills.
One of the main differences between final expense insurance and traditional life insurance is that burial insurance does not require a medical exam, making it an appealing option for seniors or individuals with health complications.
Deciding Which Final Expense Coverage is Right for You
When deciding how much insurance or what kind of burial insurance you need, it’s important to consider the amount of financial security you are looking to provide your loved ones. Considering funeral costs or potential household expenses can help determine the amount of final expense coverage you might need. Final expense coverage can typically range anywhere from $1,000-$40,000 and can be a great option if you’re looking to cover end-of-life costs. There are three main types of final expense insurance:
- Simplified Issue Whole Life Insurance: Simplified issue whole life insurance, as the name implies, has a simpler process for purchasing coverage. Although coverage is not guaranteed, approval is based on a questionnaire about your health and lifestyle instead of an exam.
- Guaranteed Issue Whole Life Insurance: Guaranteed issue whole life insurance has guaranteed approval for individuals between the ages of 45-85. There is no medical exam required, only a basic application has to be completed.
- Critical Illness Life Insurance: Much like simplified issue and guaranteed issue, there’s no medical exam required for critical illness life insurance and you can expect lifetime coverage. This type of insurance helps protect you if you become critically ill during the policy term and pays out a lump-sum benefit upon diagnosis.
Finding the Most Affordable Burial Insurance Policy
The cost of final expense insurance depends on the amount of coverage you need as well as the answers you provide in your questionnaire and/or application. An advantage of final expense, unlike other types of insurance, is that your premium should never increase and your coverage should never decrease.
Burial Insurance FAQs
Have a question about burial insurance? We have the answers.
Q: Is burial insurance and life insurance the same thing?
A: Unlike traditional term life insurance, burial insurance is intended to cover one-time or short-term expenses, such as funeral costs and end-of-life expenses. That said, it can help cover some outstanding debts depending on the policy amount.
Q: Does burial insurance have cash value?
A: Burial insurance is a form of permanent life insurance, meaning it is guaranteed not to expire as long as premiums are being paid and it does build a cash value over time, from which the insured person can borrow against.
Q: How long does it take to receive a payout for burial insurance?
A: While every situation is different and timing can vary, many insurance companies will typically payout the burial insurance 14-60 days following a claim.
Q: When should I buy burial insurance?
A: While burial insurance can be a strong alternative or addition to traditional life insurance, rates do increase as you age so the earlier you can purchase the better your chances of a favorable rate.
SelectQuote Can Help You Find the Best Final Expense Coverage for You
Final expense insurance can be a sure and affordable way to give you and your family peace of mind. You want to make sure your loved ones are protected if you pass, and burial expense insurance is a sure way to make sure they are. If you’re interested in exploring your insurance options, SelectQuote can provide you with coverage comparisons and quotes for burial insurance in just minutes.
