Is Burial Insurance Worth It? How to Know
In short, yes burial insurance is worth it especially for seniors. If your are a senior that has not saved up money for your funeral services this means your loved ones will ultimately become responsible for your final expenses.
They will be responsible for the thousands of dollars of funeral expenses if you do not have burial insurance. So if you are a senior with no money saved up to pay for your funeral then the answer to the question “is burial insurance worth it?” is a resounding yes.
In this article we will explain in further detail why burial insurance is the best option to protect your loved ones from debt they can be responsible for with the funeral home after you die to pay for the funeral.
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Do I Need Burial Insurance?
If you are a senior that has not developed a payment plan for your funeral or set aside the money in separate savings accounts to leave to your family for final expenses or worked with the National Funeral Directors Association on preplanning then yes you need burial insurance.
Burial insurance is life insurance for final expenses also known as final expense insurance or whole life insurance. You can read more on that on our other article here.
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If someone dies without life insurance and they have no money this creates a world of problems. Your family will be responsible for coming up with the money to bury you and any other expenses you have left behind. This results in people hosting GoFundMe’s for the funeral and taking out loans.
This is all just to make sure you are buried with dignity. If you think the Social Security Administration will pay for the funeral then you are out of luck. They only pay $255 for the burial.
That is the equivalent to throwing a small pin at a brick wall.
According to bankrate.com
The average funeral costs for a burial is $7,640.
Thanks, Social Security….
This is why you need funeral insurance it is designed to cover burial and end of life expenses.
Does Burial Insurance Make Sense?
Yes burial insurance makes sense because the insurance will cover the funeral expenses. It also does it quickly within 48 hours so your family is not stuck waiting.
Your family recieves the death benefits when the insurance companies pay out and your family uses the money to pay for the funeral. This is why burial insurance makes sense it is quick and efficient at getting the job done for your family.
Qualifying for Coverage
Now it is also easy to qualify for burial insurance, you simply fill out the form to your right, see quotes and speak with one of our agents. They will ask you health questions and confirm your eligibility.
Unlike other products like health insurance, even if you have moderate health conditions our agents are highly trained and can help you get day one coverage 90% of the time. If they cannot they will let you know.
Is Term Life Insurance Burial Insurance?
No it can be if you die within the term period but term terminates and we never recommend that product for burial insurance. Term is meant to serve as mortgage protection and income replace when you are young. It is not designed to be burial insurance.
This is just another reason why burial insurance is worth it.
So if you are wondering is burial insurance worth it? Yes, it is considering those important facts.
Is it Good to Have Burial Insurance?
Absolutely it is very good to have burial insurance. This not only guarantees your burial expenses will be paid for and your family will be protected but how responsible you are for your family.
When your loved ones know you have insurance to protect them it gives them peace of mind knowing they will be taken care of. Ultimately burial insurance is the final gift and way of showing your family you love them so yes it is good to have burial insurance.
Noone should ever have to bear the financial burden of paying for their loved ones funeral at the wors possible time. The time of grieving should be nothing more than grieving their loved ones. A big funeral bill piled on top of this makes for a very terrible experience for family members.
This is why insurance exists in the first place to protect ourselves and our loved ones. Giving them a lump sum death benefit of $20,000 to fall back on when you die will save them from selling personal belongings or borrowing money.
Burial insurance also serves as an inheritance, if you wind up leaving your family more money than the funeral costs then they can use that extra money for whatever they want. This could help them pay their rent for months or help them with buying a new car if they need it.
Leaving them extra money after your burial can help them better their lives in numerous ways so yes it is very good to have burial insurance.
Is Burial Insurance a Good Deal?
We get this question all the time, yes burial insurance is a good deal and heres why.
For a small monthly fee typically between $50 – $100 it vary’s according to age. Your family can recieve a benefit of $1,000 – $35,000 when you die to pay for the burial. In addition to this your policy gains cash value.
Cash value is a savings interest that builds in your policy over time and you can use this extra money to borrow against and pay for things incase you need it. You can even pay your own premiums with the cash value.
We recommend only using your cash value in times of emergency but it is great to know the money is there when you need it the most.
Other Benefits and Riders
You can also add additional riders to your policy depending on what life insurance company you are with.
There are Accelerated Living Benefit Rider’s. This provides living benefits meaning you can borrow from the policy’s face amount if you become terminally ill. This will allow you to pay for things in advance.
Other Riders Include:
- Accidental Death Rider
- Waiver of Premium Rider
- Grandchild Riders
All of these factors combined make burial insurance a good deal.
What Happens if you Don’t Have Burial Insurance?
If you do not have burial insurance and have no money set aside or any kind of preplanned burial then your family will go into debt or pay a huge amount of money out of their own pocket.
Burial costs vary from state to state but ultimately they are between $8,000 – $12,000 not counting inflation. So if you do not have burial insurance your family is going to have to pay that amount up front for your burial.
If they do not have the money to pay for it then they are going to look for ways to get the money by taking out loans or selling things they own to get the money required. In short if your dont have burial insurance your family will suffer.
Fill out the form to your right to get covered.
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