Losing a loved one is never easy. While the family deals with the tremendous tragedy of loss, the funeral costs impose an extra burden on them.
That is why opting for a suitable burial policy from amongst the most reliable burial insurance companies always proves beneficial. This does not just ensure a respectful exit for you but also acts as great support for your family as they grieve.
But to ensure that you get what you are paying for, you must go with an insurance provider that you can rely on blindly. Picking a company that will truly live up to its promise even when you are not there is not easy.
But with a little bit of effort, such a task is not impossible too.
However, before discussing how to choose and go with the right burial insurance company, you should understand what a burial policy is.
What is a Burial Insurance Policy?
Burial insurance policy, also called final expense or funeral insurance, is nothing but whole life insurance designed to pay for burial, funeral, and other final expenditures.
The funeral and burial costs are often the most expensive end-of-life expenses. But there can be other costs, too, like legal fees, medical bills, housing costs, and others. So it is always wise to think of all the potential last expenses when deciding which policy should be ideal for you.
What Does Burial Insurance Cover?
Burial or Final Expense policies are those that your family will face in the event of your demise like:
- Burial Costs
- Funeral Arrangements
- Medical Bills
Given the lower coverage, burial insurances are not intended to leave money beyond the funeral and burial services cost to the policy holder’s beneficiary.
According to insurance experts like “Gary P. Cubeta” from “Insurance for final expenses”, the beneficiary can use the excess amount to pay the debts like legal costs and outstanding debts. If you feel like leaving behind a more substantial inheritance, you should go with a policy that holds more value.
Types of Burial Policy
There are various types of burial insurance policies –
- Simplified – In this case, your health condition is determined by a series of queries with no medical exam.
- Pre-need – This one includes a contract with a funeral service provider, and the money goes directly to them in case of your demise for your chosen service or products.
- Guaranteed – This is the guaranteed policy for which you don’t have to answer any health question or undergo a medical test. But as it includes more risk, the premiums are higher and only available when the policy is in effect for a particular period.
Things to Consider When Choosing the Right Burial Insurance Company
- Estimate the Final Costs – The first step is to think how much is needed to cover the end-of-life expenditures. The funeral cost is the first and undoubtedly the highest expense in this regard. But, there can be other costs, like legal expenses, medical bills, etc. Have a complete understanding of what you want to cover and then judge after comparing the policies from different insurance companies.
- Decide If You Want to leave Behind Enough Money to Cover the Final Costs – The question has always been – how much money will be sufficient? Another pertinent question is whether your loved ones will achieve the funds at the earliest. Your money can get stuck in probate and that can be problematic as cemeteries expect payments then and there. There can be other bills that can add up at that time. Naturally, it is better if your policy can pay up all those costs. Choose a company depending on that.
- Check the Features – You should choose from the burial insurance companies that ensure the premium costs won’t go up as you grow older. You should select a company that boasts an excellent rating. Avoid a policy that asks you to go for a medical exam (except when it is mandatory for your chosen coverage). However, you may have to answer health questions for policies that are underwritten. Finally, you should also go for an insurance company that will stay valid until the end.
- Determine the Insurance Type You Want- You will get various policies in the market today named funeral, final expense, or burial insurance. Though their names differ, they typically mean the same, and the coverage amount lies between $ 25,000-50,000. The cost is lower as it is intended to meet the final expenses and not provide income to the survivors.
Now that you know, you should select the insurance company that you can trust. Only then can you ensure a peaceful and worry-free life – after all, you have taken care of everything.