Death is an inevitable part of life, and planning for your burial and funeral may help lift the burdens of your loved ones as you pass onto the afterlife.
The average cost of funeral expenses can range between $9,000 and $12,000. The average cost of a casket alone can be anywhere between $3,000 to $5,000. Most people do not have that type of money, and the price of funerals and burials have only been steadily rising since the 1980’s. Funeral homes often charge a basic service fee, only mounting on to the cost of your death to your loved ones.
Burial insurance, also known as the end of life insurance, funeral insurance, or final expense life insurance, is a type of whole life insurance policy that can help pay for the cost of your burial, memorial service, casket, and tombstone.
So what is burial insurance?
When you purchase burial life insurance or final expense insurance, you pay into it until you pass. When you die, your beneficiary will contact the life insurance company with proof of death and he or she will receive a check for the amount you chose to receive when you signed up for your policy. Your beneficiary can then use that payout to help them pay for the cost of your death.
If you think you cant afford burial insurance, think again. Because the payout is much smaller than your average life insurance policy the premiums are much more affordable. And because it is a smaller form of life insurance, it is much easier to get as you are not required to take a medical exam to receive the policy.
What does burial insurance cover?
As the name implies, it covers the cost related to the passing of the insured. That includes but is not limited to
- Burial plots
- Funeral home expenses
- Urns and flowers
- Medical bills
- and even debt and loans depending on your coverage
Who should get final expense/burial insurance coverage?
Final expense insurance or burial insurance is perfect for those that cannot afford a permanent life insurance policy but would still like to provide financial relief to their loved ones at their passing.
It is also important to note that burial insurance payouts are not limited to paying off funeral costs. Your beneficiaries may also use the money to cover loans, medical bills, and any outstanding debt you may have.
If you’re worried about the cost of your death on your loved ones, final expense insurance is a great option for those that want to make sure their loved ones have one less thing to worry about at their passing.