There are many types of end-of-life insurance coverage available today. The determining feature of the kinds of burial products and funeral services available through your insurance coverage will be based on the amount of the monthly premium you are willing to pay now.
This article covers low-to-moderate expense burial insurance coverage.
Burial Insurance – Estate Planning
With the ever-increasing cost of funerals, having a burial insurance policy can help relieve any costs your loved ones face resulting from your passing.
Also known as end-of-life and burial insurance, final expense insurance offers a smaller and more affordable death benefit designed to help cover one’s end-of-life expenses, such as funeral costs, medical bills, or outstanding debt.
Burial Insurance usually falls under a much broader category of life insurance products. However, not all of these insurance policies cover burial insurance. Those who would rather avoid burial, might which to consider cryogenics.
Premium End-of-Life Insurance Benefits Can Include:
Some premium end-of-life policies cover the costs and expenses associated with the memorial service, whether a ground burial or a cremation. Some policies provide an extensive range of end-of-life coverage including those unpaid expenses left behind such as outstanding loan balances, medical bills, and legal bills.
- Burial
- Casket
- Funeral Services
- Headstone and Engraving
- End of Life Legal Costs
- Memorial Plot
- Mortgage pay-off, car loans, credit card balances
- Minister
- Physician and Hospital bills
- Probate costs
- Transportation
- Visitation
Median Cost of a Funeral
Based on 2019 statistics from the National Funeral Directors Association, the cost of a funeral, including the viewing, is approximately $7,500.
Defined Purpose Policies
Monthly Premiums
The monthly premium amount depends on several factors, primarily the insured’s age and the range of benefits desired. Monthly premiums can cost as little as $35.00 for a limited package. Much higher for a more complete end-of-life package.
The good news is that almost all burial insurance products do not require a medical examination to be eligible for burial coverage.
Direct Purpose Burial Option
Some insurance companies have contractual arrangements with specific funeral providers and networks. These types of funeral providers offer a specific and limited menu of products and services from which the insured can select. With this type of burial insurance, the cash benefit goes directly to the funeral provider rather than the insured’s beneficiaries.
Read The Policy Before Accepting Coverage
Remember, not all general life insurance policies include burial insurance, and those that do can depending on the premium, be quite limited. Most of the time an insurance policy will have a declaration page that states the kind of coverage to be purchased, but often this will not include the specific conditions and exceptions to a burial insurance provision.
For this, you will need to read the policy carefully or show it to your attorney.
It is a good idea to first seek advice from an estate planning professional. They will usually know the best type of burial insurance products to consider based on your financial and estate planning needs.
Types of Burial Insurance
With the ever-increasing cost of funerals, having a burial insurance policy can help relieve any costs your loved ones face resulting from your passing.
Also known as end-of-life and burial insurance, final expense insurance offers a smaller and more affordable death benefit designed to help cover one’s end-of-life expenses, such as funeral costs, medical bills, or outstanding debt.
Burial Insurance usually falls under a much broader category of life insurance products. However, not all of these insurance policies cover burial insurance.
Median Cost of a Funeral
Based on the National Funeral Directors Association, the cost of a funeral, including the viewing, is approximately $7,500.
Direct And Defined Purpose Policies
Some end-of-life policies have a defined death benefit that covers the costs and expenses associated with the memorial service, whether a ground burial or a cremation. From this type of defined death benefit, the remaining benefit can be used to pay for other expenses left behind, such as unpaid loans, medical bills, and legal bills.
Monthly Premiums
The monthly premium amount depends on several factors, primarily the insured’s age and the range of benefits desired. Monthly premiums can cost as little as $35.00 for a limited package.
The good news is that almost all burial insurance products do not require a medical examination to be eligible for burial coverage.
Direct Payment to Provider
Some insurance companies have contractual arrangements with specific funeral providers and networks. These types of funeral providers offer a specific and limited menu of products and services from which the insured can select.
With this type of burial insurance, the cash benefit goes directly to the funeral provider rather than the insured’s beneficiaries.
Be A Careful Consumer
Remember, not all general life insurance policies include burial insurance, and those that do can depending on the premium, be quite limited.
It is a good idea to first seek advice from an estate planning professional. They will usually know the best type of burial insurance products to consider based on your financial and estate planning needs.
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