The best Side of burial insurance aarp

Those commercials for "final expense" insurance certainly raise questions in the minds of consumers. Many people wonder if burial insurance is necessary, or perhaps begin to wonder how their own funerals will be paid for. Those are great questions, and each person should do their own research. Here's some general information to get the search started as you begin to look into the topic of burial insurance.

Isn't Burial Insurance "Duplicate Coverage?"

You may wonder why a person would buy final expense insurance if their life insurance will cover the cost of a funeral. That seems, after all, like duplicate coverage, doesn't it?

The truth is that if you already have great life insurance coverage, in amounts that will cover your final expenses, your outstanding debts and whatever is necessary to provide for your survivors, you probably don't need burial insurance. That's a personal decision you'll have to make for yourself.

If, on the other hand, you have little or no life insurance, and a serious health condition won't allow you to purchase more, final expense insurance may be a good option. Many burial insurance policies are "guaranteed issue" meaning you can't be refused coverage. The trade-off, however, may be much higher premiums than standard life insurance. As you investigate this kind of insurance, ask each company three things:

- Will I be required to have a physical examination prior to coverage?

- What kind of premiums will someone my age in my physical condition expect to pay?

- Is the policy guaranteed issue?

Is "Final Expense Insurance" the Same Thing?

Although we've used the phrases "burial insurance" and "final expense insurance" interchangeably in this article, the truth is there are differences between the two. Burial insurance, as the name indicates, is written in amounts appropriate to cover the average funeral service. Final expense insurance typically is meant to cover the expenses left behind by the deceased. That could include credit card debt, funeral expenses, legal expenses, or anything not paid for by traditional life insurance. As you begin to research this type of coverage, ask which kind of insurance the companies are selling and in what amounts the policies can be written. Again, either type of insurance will probably be more expensive than typical life insurance.

Why Not Just Pay for the Funeral with Available Funds?

If you're asking that question, you've probably either never planned a funeral or have substantial money set aside for emergencies. You may not realize how expensive a simple funeral can be if it's the first situation. You can expect to pay for: transportation of the deceased to the funeral home and to the gravesite, rental of funeral cars or limousines, embalming and preparation of the remains, flowers and memorials, use of the church or funeral home, payment to the person officiating at the service, closing the gravesite and opening, cost of the casket, memorial and vault marker, and a whole host of miscellaneous fees attached to funerals and burials.

At this point, you may be considering cremation as a more affordable option. As you're looking into burial insurance and how much you'll need for final expenses, be aware that the standard funeral in America costs $3000 to $10,000, and cremation can cost anywhere between $1000 and $4000, on average.

The final decision whether or not to purchase burial insurance is yours. Contact several companies, should you choose to purchase insurance to cover final expenses, and make sure you understand how their premiums are set and what their policies are meant to cover. With that information in hand, you'll be able to make a decision that's appropriate for you.

What Is A Burial Insurance Policy?

A burial insurance policy is usually quite simple! It is actually a whole life insurance policy with a fairly small face value. That face value may range from a couple of thousand dollars to about twenty-five thousand dollars. That may seem like quite a bit of money, but in the overall picture of things like life insurance, it is considered fairly small. It has also been designed to be simple for older people to apply for, and after they apply for it, to get accepted.

There are two things insurers know these days. One is that there is a booming market for baby boomer and senior products. The other is that funerals read more can be quite expensive. It is tough to calculate an average figure to pay for a burial, funeral, and other associated costs, but eight or ten thousand dollars would probably be close.

It can be very hard for moderate income families to budget for this expense. It can be even tougher for seniors on fixed incomes to save for it. So that is why burial policies have become one way to plan for these expenses. A senior, or his or her family, can make monthly payments. When the insured person passes away, the cash benefit from the policy can be used to pay for expenses like burials, funerals, settling debts, etc

. Who Buys Burial Insurance?

Sometimes seniors will purchase a policy for themselves. They are used to taking care of things in their lives, and they feel like this is one more obligation they want to take care of. Sometimes other family members, like grown children, will purchase the policy for their parent o grand-parent. Sometimes it is hard to begin talking about this subject, but usually, everybody in the family feels better because they know that this final thing has been taken care of.

How To Buy A Burial Policy

Please do not run off and purchase the first policy you see advertised on TV. Even these policies can come with different price tags!. Besides, insurers are different when they set their premium rates. If you shopping for another kind of insurance, you have a right to compare premiums and plans just as.

Some plans have an immediate death benefit. This means that they pay the full face value as soon as the policy is issued. Others have a waiting period before the full benefit is paid. It is very important to understand how your policy works before you buy it, and certainly before you ever have to make a claim!

Of course, it is better to get a policy with an immediate death benefit. But some people with severe health conditions may not qualify for it. In this case it may be OK to consider a policy with a waiting period. If the insured person passes away before the waiting period is over, they usually refund premiums or pay a partial death benefit.

It is fairly simple to compare plans and prices with online quote forms too. You can spend a couple of minutes completing them. Then the top insurers will compete for your business.

If, on the other hand, you have little or no life insurance, and a serious health condition won't allow you to purchase more, final expense insurance may be a good option. We've used the phrases "burial insurance" and "final expense insurance" interchangeably in this article, the truth is there are differences between the two. If, on the other hand, you have little or no life insurance, and a serious health condition won't allow you to purchase more, final expense insurance may be a good option. We've used the phrases "burial insurance" and "final expense insurance" interchangeably in this article, the truth is there are differences between the two. Again, either type of insurance will probably be more expensive than typical life insurance.