Get the complete information on the affordable burial insurance policy of reputed companies that provide quality service at a low cost. Find out top burial life insurance plans, companies, rates only on this site.
When you talk about burial insurance plans it means a whole life insurance plan with death benefits. These benefits go to paying expenses for your funeral. Many things come to mind when we say burial insurance policy such as, is it necessary? Can one get a policy by answering a few health-related questions? You got to get this clear from the start – the money is going towards any kind of expenses related to your death. This is to help your family members who will otherwise be burdened with a big funeral expenses bill.
How much does burial insurance cost
You know how the funeral cost can be in excess of thousands of dollars. This can become an unbearable expense for family members who have to bear it. If one is able to put this money aside before he dies this cost will not be a burden. This is how burial insurance works. A person that wants to take up his own funeral cost will take up insurance from an insurance provider. He begins to pay premiums to cover the burial insurance cost and in many instances, he will be able to pay this amount. So, he is prepared to die knowing that his funeral expenses are fully covered. None of his family members are burdened by this expense.
In many cases, insurance companies do not even require a medical examination for issuing an insurance policy. Cost of insurance policies will vary from one company to the next. You have policies covering one person or an entire family. Choose the right one by going through every condition specified in your contract.
The burial insurance cost covers several things like funeral expenses and funeral material costs. When you die, the benefits from the insurance go to your beneficiary. The death benefits remain low usually between $4,000 and $20,000. The beneficiary can use this amount in any way they see fit. Let us say you take insurance for $13,000. If the funeral expenses come to $9,000, the beneficiary has $4,000 in hand to do as they like with it. They might make use of this for final costs that include legal expenses and medical bills you haven’t paid.
It is normal for expenses for burial to climb up very high. It may be as high as $35,000 or as low as $2,000. But, this expense can be avoided altogether is one gets a policy from one of the burial insurance companies. You see many kinds of service providers who will try to make money out of you. But, there are genuine companies who have been in the business for several decades. So, it makes sense to check their service record, how long they have provided insurance, the number of people who have availed of their service, and the types of optional arrangements possible through their company. Once you are satisfied with everything, you can go ahead and choose that particular company.
They will ask you about your health and habits when you apply for policy. These things are typical questions like how long you have been smoking, what are your lifestyle habits and so on. They will want to know your medical history and whether you have any illnesses. Most importantly, if you are middle-aged, they will want to know if you are a diabetic patient or not. Some insurance companies specify that one has to make payments for a minimum period of two years before the collection is started. Also, they will pay insurance only up to 100 years of age. Beyond this age, your insurance policy will not cover you.
Types of burial insurance plans
Burial insurance is a type of life insurance that helps you pay for your funeral services. There is merchandise cost after a death that you need to take care of. In many cases, you don’t need a medical examination to get insurance. The applicants will be asked about their medical status. They need to tell whether any serious medical condition exists.
The insurance companies give you two kinds of services – burial insurance and preneed funeral insurance. They are both connected to your death; it will be paid only when you die. But, the way this amount is paid out differs. When you take insurance for burial expenses, you nominate a beneficiary who will receive a specified amount of money when you die. He or she will use this money to pay for your funeral expenses.
Your beneficiary has to take care of attending to the last rites and arranging the needful. You may opt for low-cost insurance and start paying premium from today. If you pay the entire amount needed, your burial expense insurance remains effective for the remainder of your life. This helps your family and those dependent on you a good way to bear this expense in case you die.
The second way to take care of your death expenses is to arrange for preneed funeral insurance. In this case, you nominate a funeral home to take care of your funeral needs. There is no beneficiary involved and so your loved ones needn’t run around doing things. They only need to inform the funeral parlor and people from the funeral parlor will take care of everything.
There are several benefits in taking burial insurance. For one, it allows you freedom from worries. You will not have to think about what will happen when you die. Will my parents be burdened? Or, will my wife have to bear the cost? These kinds of worries disappear because all the funeral rites and expenses will be handled by the people at the funeral parlor. You can choose a funeral parlor in your locality or find a good high class one but then you will have to pay more.
They do not ask for too many details – only give your name and bank details and they will attend to the rest. This type of easy dealing helps one who is not very conversant with getting policies or making online payments.
Paying the premiums
Here is how it is. Premiums for burial insurance plans work out to $3 or $4 a week. Making a weekly payment of $3 will entitle you to an insurance policy of about $6,500. This depends on the age at the time of application because older people will have lesser time to pay the premiums.
For instance, a 36-year-old man will pay a premium for 24 years, which is until he is 60 years of age. A 24-year old boy will pay insurance for 36 years and so the insurance amount will be more. So, the old man will get a sum or $6,500 while the young boy will get $18,200. For this reason, it is advisable to begin paying premiums when you are young. Your family will get a bigger amount of money when you die.
Is burial insurance worth buying?
You can compare the services provided by various funeral insurance service providers and find the best one. If you take a company that is popular around the country for providing funeral services, you will have to look for things like whether they need you to be in perfect health and such issues. Many companies don’t mind your health condition and will give you insurance regardless of whether you have pre-existing conditions or not. You only need to be between a specified age, say between 50 and 80 years to qualify.
The second thing one needs to see is whether they are costly or not. If you choose one that has low premiums, you might not get a big sum when you die. Choose one that offers you many plans so you can choose the one you need. But, these graded plans might have some riders along with it. For instance, you might have a waiting period. That is to say, your policy will come into effect only after you have paid premiums for two years. If you pass away during this period, your family will receive only 30% of the amount specified. You get the burial insurance plans from providers who are in touch with funeral parlors.
See if they have riders
Or, if you pass away in the second half of the waiting period, then your family will receive only 45% of the amount specified in the insurance. This is not so difficult to bear because most companies will have this rider. But, to be on the safer side, it is better to choose a company that does not have such a rider with their insurance policy. Many companies offer accidental death benefits options that you can add to your insurance policy. It is better for your family if you do so.
There are other benefits offered by burial insurance service providers such as accelerated living service options. Including these will help you get better benefits with your policy. The preneed funeral insurance policy will take care of things like a headstone, casket, cost of a burial plot, expenses for the funeral procession, and so on. If you nominate a beneficiary as is the case with burial insurance, then this beneficiary will have to take care of all the details. At times, this expense will be more and the beneficiary will have to shell out money. But, in most cases, the amount will cover all expenses.
Pick high value companies
Check the different offerings of burial insurance plans of various companies. The burial insurance companies collect the premiums once a week or on a monthly basis. You will find that some offer plans that have almost double the value of that offered by other companies. These types of insurances build cash value. This means you can use the insurance policy to take a future loan. In a few cases, there is a terminal illness clause also that helps in case you come down with a terminal illness. Your family will get a good amount when you die due to this illness.
Check for companies that look back one year instead of the customary two years when you go to them for a medical insurance policy. You might only get graded benefits from other companies but with these companies, you get standard benefits. This kind of liberal underwriting is what one must look for when one goes to get a burial insurance policy. Check for companies that offer low rates and do not have any waiting period. This is the best option. When a company offers more rating classes for its plans, you have a better chance of getting a better deal. Most of the plans are available for those within 16-65 years of age. If one is above this age, say in the group 65 – 85 years old, and then one must go through medical underwriting.
Get insurance from a reputed company
Check the burial insurance cost with at least two or three companies before you settle on anyone. Most insurance service providers sell tradition life insurances along with their plans. These plans are available to anyone in the age group 45- 80 and give you an amount of $45,000. Check for a reputed company with excellent customer service so you will not experience any delay in transactions. Also, their dealings will be courteous and your family will not have any trouble once you die.
A few companies do not care whether you are affected by Parkinson’s or not. Most companies will have a rider for Parkinson’s and so it is better to check if this is so. As long as you are within the age group, you can get up to $100,000 worth of burial benefits by choosing the right company. So, it is worth it to start thinking about your burial insurance when you are young. With a few other companies, you get a part of the insurance amount to enjoy while you are alive. This might be as much as 75% of the face value of the insurance amount.