Funerals are very expensive these days. After all the costs are added in, bills of several thousand dollars may mount up. In a perfect world, people would be able to plan for these expenses. However, this is not that easy.
Isn’t Burial Insurance “Duplicate Coverage?” You may wonder why a person would buy final expense insurance if their life insurance will cover the cost of a funeral. That seems, after all, like duplicate coverage, doesn’t it?
Most burial insurance plans are sold as term life insurance policies. Some burial insurance policies will expire in as few as five or ten years and others may expire in twenty or thirty years. You may be able to find an insurance company that sells you a burial insurance policy that will expire when you reach the age of 100. Since you are most likely going to die before you reach that age, most policies are set to expire at that age.
In addition to these routine costs, there may be other financial bills to handle. Their could be medical expenses or other debt to settle, a house to sell, or pets to care for.
One way to plan for these expenses is with a burial policy. Sometimes these are also called funeral or final expense insurance. What are they? They are actually insurance policies with a fairly modest death benefit. The cash is intended to be used to pay for end of life expenses.
Why Not Just Pay for the Funeral with Available Funds? If you’re asking that question, you’ve probably either never planned a funeral or have substantial money set aside for emergencies. If it’s the first situation, you may not realize how expensive a simple funeral can be. You can expect to pay for: transportation of the deceased to the funeral home and to the gravesite, rental of funeral cars or limousines, embalming and preparation of the remains, flowers and memorials, use of the church or funeral home, payment to the person officiating at the service, opening and closing the gravesite, cost of the casket, vault and memorial marker, and a whole host of miscellaneous fees attached to funerals and burials.
Sometimes an older person will purchase a policy for themselves. They may name a close friend or family member as the beneficiary. That person will be responsible for claiming the money and handling bills. Other times, a family member will take on the responsibility of paying for the policy. For example, grown children may decide to purchase a policy as a way to plan for parent’s funeral.
The final decision whether or not to purchase burial insurance is yours. Contact several companies, should you choose to purchase insurance to cover final expenses, and make sure you understand how their premiums are set and what their policies are meant to cover. With that information in hand, you’ll be able to make a decision that’s appropriate for you.
At Burial Insurance Advisors we provide you with advice you can bank on for one the most important insurance decisions you can ever make. Find out more information about Burial Insurance here.