Burial Insurance

Burial insurance can be a good option for individuals who want to ensure that their final expenses are taken care of. Without having to wait for an insurance company medical exam, the coverage can be purchased online or over the phone. Candidates are questioned about their age, history of smoking, and any major medical concerns they may have. Find out more about burial insurance below.


What is Burial Insurance ?


Burial insurance, also known as final expense insurance or funeral insurance, is a type of insurance policy designed to cover the cost of a person's funeral and related expenses after their death. It is typically a small, relatively affordable policy that can help ensure that the individual's final expenses are covered without burdening their loved ones with the financial responsibility.

Burial insurance policies generally have lower benefit amounts compared to traditional life insurance policies, typically ranging from a few thousand dollars up to $25,000 or more. The policyholder pays a monthly premium in exchange for this coverage, and upon their death, the beneficiary receives the death benefit to cover the funeral and burial costs.

Burial insurance policies are often marketed to seniors or individuals with pre-existing health conditions who may not be able to qualify for traditional life insurance policies. They are typically easier to qualify for and require fewer medical exams or underwriting compared to other types of insurance policies.

How Does Burial Insurance Work ?


Burial insurance policies pay out a lump sum of money to the policy's beneficiary after the policyholder's death. The beneficiary can use the money to cover funeral expenses, such as the cost of a casket, burial plot, and funeral services.

Burial insurance works similarly to other types of life insurance policies. Here's how it typically works:

  • The policyholder purchases a burial insurance policy from an insurance company. The policyholder selects a benefit amount, typically ranging from a few thousand dollars up to $25,000 or more.
  • The policyholder pays a monthly premium to keep the policy in force. Premiums are typically fixed and do not increase over time.
  • Upon the policyholder's death, the designated beneficiary (usually a family member or loved one) files a claim with the insurance company and provides a death certificate as proof of the policyholder's passing.
  • The insurance company pays the death benefit directly to the beneficiary, who can then use the funds to cover the costs associated with the policyholder's funeral and burial.

It's important to note that burial insurance policies may have certain limitations and exclusions, such as a waiting period before the policy pays out or restrictions on how the death benefit can be used. It's essential to review the policy terms and conditions carefully before purchasing a policy to ensure that it meets your needs and expectations.

Who is Eligible for Burial Insurance ?


In general, burial insurance is designed to be accessible to a wide range of individuals, including those who may not be eligible for traditional life insurance policies. While eligibility requirements can vary depending on the insurance company and policy, here are some general guidelines:

1) Age: 
Burial insurance policies are often marketed to seniors, typically starting at age 50 or 55, and going up to age 85 or older.

2) Health: 
While burial insurance policies may be easier to qualify for compared to traditional life insurance policies, some policies may still require a basic medical exam or health questionnaire. However, there are also policies available that do not require any medical exams or underwriting.

3) Coverage amount: 
Burial insurance policies are generally available in smaller benefit amounts, typically ranging from a few thousand dollars up to $25,000 or more. Some policies may have a maximum coverage amount based on the policyholder's age or health status.

4) Residency: 
To be eligible for burial insurance, the policyholder must typically be a resident of the United States.

Types of Burial Insurance


Here are the different types of burial insurance policies:

1) Guaranteed issue burial insurance: 
This type of policy is available to anyone, regardless of their health status. There are no medical exams or questions, and the coverage is guaranteed as long as the premiums are paid. The downside is that the premiums are typically higher than other types of burial insurance.

2) Simplified issue burial insurance: 
This type of policy requires the applicant to answer some health questions but does not require a medical exam. The premiums are typically lower than guaranteed issue policies, and the coverage is still guaranteed as long as the premiums are paid.

3) Level benefit burial insurance: 
This type of policy provides a fixed death benefit that does not change over time. The premiums are based on the age and health of the applicant at the time of purchase. This policy is best suited for those who want a predictable death benefit and premiums.

4) Graded benefit burial insurance: 
This type of policy is similar to level benefit policies, but the death benefit is limited for the first few years after purchase. After a certain period of time, typically 2-3 years, the full death benefit is paid out. This policy is best suited for those who may have health issues that prevent them from qualifying for other types of coverage.

5) Pre-need burial insurance: 
This type of policy is purchased directly from a funeral home or cemetery and covers the cost of funeral expenses and burial or cremation services. Pre-need policies are typically paid in advance, and the policyholder can select their desired funeral arrangements and services.

What Does Burial Insurance Cover ?


Burial insurance is designed to cover the costs associated with a person's funeral and burial or cremation. The specific coverage provided by a burial insurance policy can vary depending on the policy's terms and conditions. Here are some common expenses that burial insurance policies may cover:

1) Funeral services: 
This can include costs associated with embalming, visitation, and the funeral ceremony itself.

2) Casket or urn: 
Burial insurance policies may cover the cost of a casket or urn for the deceased.

3) Burial or cremation: 
Policies may cover the cost of the burial plot, headstone, or cremation expenses.

4) Transportation: 
Burial insurance policies may cover transportation costs for the deceased and their family members.

5) Miscellaneous expenses: 
This can include costs for things like death certificates, obituaries, and other related expenses.

How Much is Burial Insurance ?


The cost of burial insurance can vary depending on several factors such as age, health, and coverage amount. Typically, burial insurance policies have lower coverage amounts than traditional life insurance policies, which can make them more affordable.

The average cost of burial insurance varies, but some policies can cost as little as $20 to $50 per month, while others may cost several hundred dollars per month. That being said, burial insurance policies are generally relatively affordable.

The cost of burial insurance can vary depending on these factors :

1) The policyholder's age: 
As with most types of insurance, the younger you are when you purchase a burial insurance policy, the lower your premiums will typically be.

2) The policyholder's health: 
Burial insurance policies are often marketed to seniors or individuals with pre-existing health conditions who may not be able to qualify for traditional life insurance policies. As a result, premiums may be higher for individuals who are older or who have health issues.

3) The benefit amount: 
The higher the benefit amount, the higher the monthly premium will be.

4) The policy's terms and conditions: 
Burial insurance policies may have certain limitations and exclusions that can affect the cost of the policy.

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How to Buy Burial Insurance ?


Here are the general steps to follow when buying burial insurance:

1) Research and Compare: 
Start by researching different insurance companies that offer burial insurance policies. Look for companies with good reputations for customer service and financial stability, as well as policies that meet your coverage needs and budget. You can use online comparison tools to help you compare policies from multiple companies.

2) Request Burial Insurance Quotes: 
Contact the insurance companies you are interested in and request quotes for burial insurance policies. Provide them with your basic information, such as age, health status, and desired coverage amount.

3) Review Policy Terms: 
Carefully review the policy terms and conditions, including coverage amount, premium amount, and any limitations or exclusions.

4) Apply for Coverage: 
Once you have selected a policy that meets your needs, complete an application for coverage. Depending on the insurance company and policy, you may need to provide basic medical information or undergo a medical exam.

5) Wait for Approval: 
After submitting your application, the insurance company will review your information and determine whether to approve your coverage. This process can take several days to several weeks, depending on the company and policy.

6) Pay Premiums: 
If your application is approved, you will need to pay the premium for your burial insurance policy. Premiums can be paid monthly, quarterly, or annually, depending on the policy terms.

7) Review Your Policy: 
Once you receive your burial insurance policy, review it carefully to ensure it meets your expectations and provides the coverage you need. If you have any questions or concerns, contact your insurance company or agent for assistance.

When choosing a burial insurance policy, it's important to consider factors such as the policy's coverage limits, premium rates, and any limitations or exclusions that may apply. It's also a good idea to compare policies from multiple insurance companies to find the best fit for your individual needs.

Best Burial Insurance


There are many insurance companies that offer burial insurance policies, so determining the "best" company can be subjective and depend on individual needs and preferences. However, here are some top burial insurance companies based on factors such as customer reviews, financial strength ratings, and policy features:

1) Mutual of Omaha: 
Mutual of Omaha offers a variety of burial insurance policies with coverage amounts ranging from $2,000 to $40,000. The company has high financial strength ratings and positive customer reviews.

2) AARP: 
AARP offers burial insurance policies through its partner, New York Life. Coverage amounts range from $5,000 to $50,000, and policies are available to AARP members age 50 to 80.

3) Colonial Penn: 
Colonial Penn specializes in life insurance, including burial insurance policies. Coverage amounts range from $1,000 to $50,000, and policies are available to individuals age 50 to 85.

4) Gerber Life: 
Gerber Life offers a Guaranteed Life Insurance policy with coverage amounts ranging from $5,000 to $25,000. The policy is available to individuals age 50 to 80 and does not require a medical exam.

5) Foresters Financial: 
Foresters Financial offers a PlanRight Final Expense policy with coverage amounts ranging from $5,000 to $35,000. The policy is available to individuals age 50 to 85 and includes benefits such as accidental death coverage and a family assistance benefit.

Benefits of Burial Insurance


1) Provides financial protection: 
Burial insurance can help alleviate the financial burden of funeral and burial expenses for your loved ones after your passing.

2) Guaranteed acceptance: 
Many burial insurance policies have guaranteed acceptance, which means you can get coverage regardless of your age or health status.

3) Affordable premiums: 
Burial insurance premiums are often affordable, especially compared to other types of life insurance policies.

4) Flexibility: 
Burial insurance policies can be tailored to meet your individual needs, with options for coverage amounts and payment plans.

5) Peace of mind: 
Knowing that your final expenses will be taken care of can provide peace of mind for both you and your loved ones.

Drawbacks of Burial Insurance


1) Limited coverage: 
Burial insurance policies typically provide limited coverage, which may not be sufficient to cover all funeral and burial expenses.

2) Age restrictions: 
Many burial insurance policies are only available to individuals over a certain age, typically 50-85.

3) Health restrictions: 
Some burial insurance policies may have restrictions or limitations based on your health status, which can make it difficult to qualify for coverage.

4) Limited beneficiary options: 
Burial insurance policies typically only allow you to name one beneficiary, which may not be ideal for individuals with multiple heirs.

5) No cash value: 
Unlike other types of life insurance policies, burial insurance policies do not accumulate cash value over time.

Frequently Asked Questions


Is burial insurance worth it?
Whether or not burial insurance is worth it depends on your individual circumstances and financial goals. If you are concerned about leaving your loved ones with a financial burden after your death, and if you are unable to qualify for traditional life insurance, burial insurance may be worth considering.

How much does burial insurance cost?
The cost of burial insurance varies depending on the policy's coverage amount, the policyholder's age and health, and other factors. Premiums can range from a few dollars to several hundred dollars per month.

Can I get burial insurance if I have a pre-existing medical condition?
Some burial insurance policies may be available to individuals with pre-existing medical conditions, although premiums may be higher or coverage may be limited. It's best to check with insurance companies directly to see what options are available.

How do I choose a burial insurance policy?
When choosing a burial insurance policy, consider factors such as the company's reputation, policy terms and conditions, premium rates, customer reviews, and flexibility in payment options and coverage amounts. It's also important to compare policies from multiple companies to find the best fit for your individual needs.

Can I change my burial insurance policy?
Yes, you can usually change your burial insurance policy if your coverage needs change or if you find a better policy. However, you may need to pay a cancellation fee or undergo a new medical exam if you switch policies.

What is the difference between burial insurance and funeral insurance?
Burial insurance and funeral insurance are often used interchangeably. Both policies are designed to cover final expenses, but funeral insurance may also cover other expenses, such as medical bills or estate taxes.

Who is qualify for burial insurance?
Most burial insurance policies are available to individuals who are between the ages of 50 and 85 and in good health. However, some policies may be available to individuals with pre-existing medical conditions.

Do I need a medical exam to get burial insurance?
Many burial insurance policies have guaranteed acceptance, which means you can get coverage without a medical exam. However, some policies may have restrictions or limitations based on your health status.

Can I choose my own funeral arrangements with burial insurance?
Pre-need burial insurance policies allow you to choose your own funeral arrangements, while final expense insurance policies provide a lump-sum payout to your beneficiary to cover your final expenses.

How much coverage do I need for burial insurance?
The amount of coverage you need for burial insurance will depend on the costs associated with your desired funeral and burial arrangements. It's important to carefully consider these costs when selecting a policy.

Can I name multiple beneficiaries for my burial insurance policy?
Most burial insurance policies only allow you to name one beneficiary, but some policies may offer options for multiple beneficiaries.

How do I file a claim for burial insurance?
To file a claim for burial insurance, you will need to contact the insurance company and provide proof of the policyholder's death, such as a death certificate.

Is burial insurance taxable?
The proceeds from a burial insurance policy are typically not taxable, but it's important to consult with a tax professional to understand your individual tax obligations.

Can I buy burial insurance for my parents ?
Yes, you can buy burial insurance for your parents. To get burial insurance for your parents, you will need to work with an insurance agent or company that offers this type of policy. You may need to provide some basic information about your parents' health and age to determine the cost of the policy.

How much does an average funeral cost?
The cost of a funeral can vary widely depending on several factors such as the type of funeral, the location, and the funeral home chosen. However, according to the National Funeral Directors Association, the median cost of a funeral with viewing and burial in the United States was $7,948.