Burial Insurance Benefits

Benefits of Obtaining Burial Insurance

There are several forms of what I will call Burial Cover or funeral insurance as sort of an umbrella for terms related to burial insurance Benefits. Any of the different forms will provide the benefit of peace of mind that comes with knowing that your loved ones won’t have to deplete their savings -or worse, to borrow using their credit to cover your final expense.

Another big ‘peace of mind’ issue is having funeral cover in place for the entire family. Better than that is having cover for the entire Burial Insurance Benefitshousehold, which, in addition to your immediate family, may consist of an aging in-law, perhaps. Final expenses are high and can easily deplete savings -especially if two events occur too close together in time.

How do people handle such expenses if there is no insurance coverage? Covering these costs with credit could, for some, affect the family’s standard of living for a number of years.

Burial (or funeral) insurance is often ‘term’ insurance which ends at the end of the term. If it ends at age 80 and you are still with us, you must renew it or do without. A ‘whole life’ type policy does not end until you do.

Another way to ensure you will have your final expense covered is to take on a form of burial insurance that the funeral director (or funeral directors’ association) is licensed to sell you. These instruments may be in the form of a trust or whole life insurance. These are called Prepaid funeral policies. There are two forms of prepaid cover.

One is guaranteed -which will protect you from rising costs. Non-guaranteed plans do not offer the inflation protection.

The Attraction of Burial Insurance
Burial Insurance Benefits are in demand among people who are not in the best of health and who want to buy some form of burial cover. It could cost many times more than term life insurance.

The attraction (and one of the main burial insurance benefits) to those in failing health is the simplicity. To qualify, no rigorous medical examination is required, as is with term life insurance. The interested applicant usually needs only to answer a few health-related questions which is, not surprisingly, the reason why it is so expensive.

That said it is not a ‘slam dunk’ either. The admission of drug use might knock you out of contention, as will having spent extended periods of time in the hospital in recent past. Cancer or HIV may be deal killers, as well -but not always. One thing you can count on is the rates will be high, if you can find some company to take you on at all.

Burial (or funeral) insurance definitely has its place among those who waited too long to be eligible for life insurance (which is contingent upon health conditions) and for whom that cheaper form of insurance is beyond their reach.

There are other factors, too, that could be considered beneficial. The fact that burial cover is only used for burial expenses can be a positive, depending on the state of the family and how well you think your heirs will honor your wishes. That topic is covered in the article Burial Insurance: Some Perspective.  

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Burial Insurance Benefits

More info:

Wall St. Journal – Pre-paid Burial Plans

Planning Ahead for Funeral Costs

2 Responses to “Burial Insurance Benefits”

  1. Jack W says:

    Hello -
    I’m checking out your site because my father had life insurance. Instead of paying off some debt with it, my brother spent it at the racecourse. His horse didn’t come in. (What a surprise).

    I see that burial ins. would have been a different story.


  2. goalnantuckt says:

    Hello jack -

    Thanks for the note. Unfortunately, we can’t control the actions of some of our relatives.
    Your story is not an uncommon one, from what I gather.


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