First and foremost, when it comes to burial insurance vs life insurance you are probably wondering what is the difference? The truth is there is not much of a difference at all.
Burial insurance is final expense whole life insurance, burial insurance is just a marketing term for those plans. Now burial insurance is the perfect product for paying funeral expenses and making sure the funeral home gets their money quickly.
All life insurance covers death however different products are designed for different reasons based on what the needs are of your family at the present time.
In this article we will highlight the differences between burial insurance and life insurance so you can make an informed decision on what is best for your family.
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What is the Difference between Burial Insurance and Life Insurance?
Burial insurance is final expense insurance or whole life final expense insurance.
This type of insurance is permanent coverage that lasts your entire life with a face amount of $1,000 to a maximum of $40,000. The life insurance pays a lump sum death benefit to your beneficiary when you die. Your beneficiary will then use this money to pay for the total cost of your funeral.
It is also reffered to as funeral insurance and cremation insurance. The benefits can be used for anything from burial, cremation, paying off debts or leaving money for kids or grandkids.
They offer additional riders for the insurance as well depending on the carrier. These riders can be any of the following:
- Accidental Death and Dismemberment Rider
- Grandchild Rider
- Accelerated Living Benefits Rider
- Children Riders
- Nursing Home Waiver of Premium Rider
Best Burial Insurance Companies:
The best life insurance companies for burial insurance are as follows:
- Mutual of Omaha
- Greek Catholic Union
- American Amicable
- Prosperity Life
- Royal Neighbors of America
- Guarantee Trust Life
- Great Western
- American General
These companies and their policies do not require a medical exam to qualify. You answer their health questions and they check your Medical Information Bureau Report and Prescriptions based on your Social Security Number.
If everything is clear according to their underwriting you are approved instantly right over the phone in minutes.
Life insurance is a much more broad term and can refer to any type of life insurance whether it is term life insurance, universal life insurance or final expense life insurance. This is the key difference between the 2 terms.
So burial insurance refers specifically to final expense whole life insurance and life insurance refers to term life insurance, universal life insurance, whole life insurance, final expense insurance or index universal life insurance. This is why the marketing terms exist in the first place.
If you are looking to protect your mortgage if you die in your younger years. This would be mortgage protection insurance which is term life insurance.
The thing with term, universal, indexed universal life insurance products is that they all are a little more difficult to qualify for because they offer such high faceamounts. So naturally the insurance companies want their candidates to be healthy.
Burial insurance is designed for seniors ages 45 – 90. This means seniors do not have to do a medical exam and the insurance companies understand that as people get older health problems come with it. This is why here at ParamountQuote our agents help 90% of our clients qualify for level day one coverage with our carriers.
We are trained to know the niches of their underwriting which guarantees you the best rate and coverage available. So to put it simply when it comes to burial insurance vs life insurance.
- For Seniors ages 45 – 90
- No Medical Exam Liberal Underwriting
- Faceamounts of $1,000 – $40,000
- For Young Adults or Seniors
- Medical Exams Term,UL,IUL
- Non Medical Exams for FE
- Faceamounts of $1,000 – $1,000,000 or more
Is Burial insurance and Life Insurance the Same Thing?
Yes they are, burial insurance is just final expense whole life insurance.
Final expense life insurance is used for end of life burial or cremation expenses. Life insurance is a spectrum of products with different purposes. Burial insurance pays out a lump sum death benefit to the named beneficiary on the policy just like any other life insurance product.
The difference being burial insurance lasts forever and builds cash value. It is designed to pay out within 24 – 48 hours of a death certificate so the funeral is paid for.
Is Death insurance the same as Life Insurance
Yes, death insurance is the same as life insurance. Just different marketing terms used for them. They have the same function, to provide a cash death benefit to the named beneficiary of the policy holders choice.
The beneficiary can use this money for a replacement of income, burial, or as an inherticance for children or grandchildren. How the money is used is entirely up to the beneficiary on the policy. Life insurance gives your family the peace of mind they deserve and serves as a gesture of love.
It guarantees your family’s financial well being when you die so they are not left with any burdens or debts that can ruin their credit and hurt them for years to come.