What is Burial Insurance? (Its Final Expense)
Burial Insurance is simply life insurance for final expenses also known as final expense insurance. It is just marketed under a different name.
The very many uses for these policies include burial, cremation, paying off any debts, or leaving an inheritance behind for your family. It is that final gift many leave behind for their families the last way to say I love you!
These policies typically do not require a medical exam they require monthly or annual premium payments they are permanent life insurance policies that will always be there when your family needs it the most! When it comes to end-of-life expenses they are the best life insurance options available!
Why? Because this type of life insurance coverage knows they are eventually going to payout. These carriers know your family will need that financial stability to stay on top of their financial obligations! It’s all about making sure your family is protected PERIOD!
Out of all coverage options this whole life permanent coverage is with your family for the long term. These carriers also have exceptional customer service! That’s why unlike any other insurance company you want an exceptional A-rated carrier. Which is exactly what we offer.
We have covered in extensive detail funeral insurance for seniors over 80, life insurance for seniors, and funeral insurance for parents
For some quick life insurance quotes fill out the form to the right.
Another thing about burial insurance is it will build cash value. So it can act as a financial backup in times of need. There is no term period with these policies. They are permanent whole life plans that will always be there when your family needs them.
That’s why many of these carriers guarantee their products and services. That’s why 10, 20 even 30 years down the road when that time comes your family can get a call or letter from the carrier with that benefit right at their time of need and it can make grieving a little bit easier.
It’s important to have your affairs in order before your time comes many Americans pass away without life insurance in place and as a result, their families suffer. Scrambling to take loans to cover the funeral which can typically range anywhere between 8000 to 12000 dollars or more!
Many people do not have these kinds of funds laying around and if they do it could take a few weeks to extract these funds when the funeral home wants their money now!
It’s important to note that there are different types of whole life insurance such as traditional whole life, universal life insurance, and indexed universal life insurance. For final expenses, a traditional whole life policy will be what we typically recommend. Whole life policies can range anywhere from 1000 to 40000 it’s also important to take into account inflation.
Burial in 1960 is not the same as it is today, In 1960 a burial could range in the $700 range, now it is well into the thousands! The key is to get a policy that is double the cost of a burial today because the truth is you may not die today but 10, 15, 20 years down the road you will, so having a policy adjusted for inflation is ideal in preparing for the unexpected.
Now if you’re thinking about a cremation that can be a more affordable alternative, however, an average cost of a cremation is usually half compared to burial. It can range anywhere between 3000 to 5000 dollars. As we stated earlier a burial whole life insurance policy can be used for this as well.
The way life insurance works is your beneficiary will receive the face amount at the time of your death. Then when the carrier sends them the check they will be able to do whatever they choose to with the money. Whether it is burial, cremation, paying off any dates, or if it is simply the inheritance you left for them.
Burial insurance is marketed to seniors typically between their 50’s to ’80s that’s why burial insurance for seniors is so important. With everything we’ve talked about so far taken into account, these policies are ideal for seniors. As we age we can tend to develop health issues if we do not take care of ourselves and in many cases even if we have!
This is another of the many things ParamountQuote specializes in. Life insurance for preexisting medical conditions. As we stated before burial insurance policies typically do not require a medical exam meaning no one is going to come to your home and take a blood sample and run away like a vampire!
Our carriers use simplified underwriting, meaning they just simply ask you health questions that our field underwriters would go over with you and run a Medical Information Bureau health report and prescription check to make sure you qualify for coverage.
At that point, you would know right then if you are approved! That’s how fast and easy it is to make sure your family is protected!
Unfortunately, burial insurance is sometimes either said to be or implied to be free burial insurance and this is simply not the case burial insurance is not free but it can be affordable. We specialize in helping you get connected with burial insurance companies that fit your needs and your budget.
An A-rating is extremely important when looking for affordable or cheap burial insurance for your family. An A-rated carrier means it is a solid carrier doing business over a long period of time and our clients deserve nothing but the best!
It’s important to note that there is no single best burial insurance for people. It all depends on your age, health and lifestyle it is not about the best burial insurance policy but the best burial insurance policy for your unique health profile.
There is no “one size fits all” way of handling funeral and burial insurance. This is why when you speak to our agents they will custom tailor a policy to your specific needs.
Fill out the form to your right to get in touch with one of our licensed field underwriters and they will assist you with qualifying and enrolling. They will also be your personal agent for life! GUARANTEED!
Methods of Enrollment:
Voice Signature
Email Signature
Security Question Signature
Extended Reading: Burial Insurance with No Waiting Period, Final Expense Insurance no Health Questions, Funeral Insurance for Seniors at age 70, Funeral Insurance for Seniors at age 60
We pride ourselves on educating our clients to help them make the best-informed decision for their families. Our agents will connect and enroll you with the top A-rated carriers in our portfolio.
Table of contents
Quick Q/A
What can burial insurance be used for?
Anything from burial, cremation, paying off debts, or leaving money for your family.
Is burial insurance the same product as funeral insurance ‘?
Burial and funeral insurance terms are used to market life insurance for final expenses.
Why was burial insurance so important?
To protect families and their assets from potential debts from the burial. To give them peace of mind and financial stability. Funerals cost thousands of dollars and having coverage in place is critical to protect your family.
How much life insurance do I need?
Determining how much coverage you need depends on a few factors. The first question would be what is your vision of your family when you pass away? Are you a younger person between the ages of 20 years to 40 years old or are you between the ages of 50 to 85 years old?
Do you have a $100,000 mortgage to protect or do you have a $20,000 to $30,000 burial to cover? Do you want to take care of debts to take care of any financial obligations that could fall on your family? These factors ultimately determine how you buy life insurance.
Term Example:
Let’s start with the high-end death benefit of upwards of $100,000. This is typically used for covering an existing mortgage on a home for example. This is marketed most of the time as mortgage protection but is known as Term Life Insurance.
These policies usually require a full medical exam, they will take your blood pressure, they will look at factors about your life expectancy, and depending on your age determine eligibility. This type of policy is great for many needs.
It can replace your income and your family could use it to pay off their home or any outstanding credit cards or debts. Again it’s all about your unique situation and vision for your family that will determine the amount of life insurance you will want for them.
The thing about the term is that it has specific term lengths typically 20 to 30 years until the renewal or the policy expires. It is not permanent coverage. While it can be renewed the carrier would require a full medical exam in most cases again and re-qualify you, this could result in your rates possibly even doubling.
The term is meant to be a temporary solution for protecting a mortgage and replace your income in your younger years. Many life insurance companies offer both Term and Whole Life.
To speak with one of our licensed agents fill out the form to your right.
Whole Life Example:
Now the lower-end benefit policies of $20,000 to $40,000. This would be life insurance for final expenses also know as burial insurance and funeral insurance. These policies require no medical exam and can accept a wide range of preexisting health conditions they will also be with you your entire life.
The premiums for these policies can be higher because of the fact that the carrier will actually one day send your family a check upon your passing. They make sure your family receives compensation. This type of policy is great for all end-of-life expenses.
It will be with you for the long term, in addition to this whole life policies build cash value that grows at a certain interest rate. This cash value can be borrowed from if you need extra finances for a given situation. The coverage amounts more than take care of a funeral given that funerals can range anywhere from $8,000 to $12,000 if planning ahead for inflation $20,000 to $40,000.
To speak with one of our licensed agents & look at life insurance quotes fill out the form to the right.
Term Life Insurance vs Whole Life?
When it comes to the topic of term vs whole life there are many things to consider. Different policies work great for different people the main question is what are YOUR unique needs?
The carriers that offer these products and services design them for a given specific situation. So if you would want to cover a 30 year $100,000 mortgage, the whole life wouldn’t be the best policy for you it would be a 30-year term policy.
Now if you’re looking to cover a $20,000 burial with a lasting memory of you and cover any outstanding debts, whole life is the best policy for you. Both types of policies are good for different situations. What’s yours? These are things to consider when looking into life insurance.
We pride ourselves on our agents matching you with a policy that fits your specific needs.
How much does Life Insurance Cost?
Life insurance rates are determined by age health and lifestyle. Preexisting conditions can be a factor in the cost of insurance as well. Rates can range anywhere between $50 to $100 monthly. The type of death benefit plays a big role as well as your gender. This primarily stems from risk factors.
The older someone gets the closer they are to death, therefore rates can be higher that is why it is so crucial to secure your coverage at a younger age.
A couple of death benefit examples
Level: which is coverage from day 1 is the best rate class available.
Graded: which is typically a waiting period for benefits can be more expensive.
We specialize in helping clients with preexisting conditions get day 1 level coverage!
To speak with an agent fill out the form to the right.
Types of Life Insurance
There are many different policy types. There is Whole Life Insurance, Indexed Universal Life Insurance, Universal Life Insurance, Variable Universal Life Insurance, and Term Life Insurance, these are the most notable types. Each type serves a different purpose for an individual’s needs.
As we have discussed before there is no “one size fits all” way of selecting benefits. That’s why insurance carriers have designed these different products. Ultimately these different types still are used for similar goals such as getting your family to receive the death benefit.
Some of these types require a medical exam and some don’t read our previous posts for more information on which types. So whether it is protecting final expenses or making sure a mortgage is covered for the next 30 years or trying to build some extra retirement income it all depends on you.
Many people simply want to make sure their life insurance proceeds go to their families but the benefit can also be assigned to an estate or multiple beneficiaries even a funeral home for burial insurance.
There are also many times accidental death riders that can be attached to these policies. Meaning if the insurance company gets notified that you pass away in a car accident depending on the rider it could pay double the face amount.
In a lot of cases an accidental death rider barely if ever affects the premium payment meaning these riders can sometimes be added on at no additional cost. If the type of policy you have is a type of permanent life then the rider will also be permanent.
We have talked extensively about terms and whole life throughout this article and both these products have been around for a number of years. Again as we stated earlier different types for different needs.
Life Insurance Beneficiary
A beneficiary can be a person, place, or thing.
It can be almost any kind of family member legal guardians, children, grandparents, spouses, and estate virtually anyone you want to receive the benefits when your time comes. There are also areas for multiple beneficiaries.
A contingent beneficiary is a second person that could receive 100% of the death benefit or if it is a type of graded policy a percentage of the premiums paid within the graded period.
For example, burial insurance which is permanent life insurance would pay out to a beneficiary at the time of the insureds passing, the first person listed as the beneficiary would be the primary beneficiary whereas the other is contingent.
So the life insurance company would send a check to the primary beneficiary if the primary is no longer living then it would go to the contingent.
Whoever you name on your policy as your beneficiary will be the person to handle whatever your intentions were for your final wishes this is why it is important to put a deep amount of thought into who you would want to name and take on this responsibility.
Who would suffer the biggest burden? Who would put themselves into debt? My children? Maybe my husband? Or my wife? These are all questions to ask yourself.