Clearing Up The Facts About Burial Insurance

Written By: Michael Cobbs on October 1, 2010 No Comment

Thinking about death is not a cheery prospect, but it something that must be thought about; this is why it pays to have burial insurance. This type of policy, which you may see advertized as funeral or preneed insurance, will provide a cash lump sum in the event of your death. This kind of policy should not be confused with a burial protection policy, which covers funeral expenses only.

It is a common misconception that funerals are an inexpensive activity. It is actually the case that funerals are not cheap and the final expense costs involved are escalating to as much as $10,000 as time marches on. A death in the family needs consideration about items such as plots and caskets, but it also requires legal fees and outstanding debts to be paid too. To help with these costs a burial insurance policy is a great asset; upon death a specific cash value is released which can be used to pay for many final expense that may have been left.

In general, burial insurance policies are accepted from applicants who are aged between 50 and 80 years of age. There are two types of burial insurance, namely simplified and guaranteed. The guaranteed option is great for those who already have a health condition as they may not be able to qualify for a simplified policy. The regular payments will be small but there may be a specified period to wait before you can claim the funds. If the case happens that you pass away before the end of this period then the payments you have made will be refunded. If you die after the period, the policy will pay out.

A simplified policy is for those who are in good health and want to start planning for their death before it is too late. Again, you will make regular payments, but they may not be as much as those of a guaranteed policy as you have a predicted longer life span. In any case, whatever happens after the policy is taken, you will receive the funds.

Many of the companies who provide burial insurance will have a small and easy application form for the recipient to fill in. This may then also be concluded with a telephone interview from the company. There may be no or little health related questions, but the company may request that there is a waiting period applied to the policy instead.

Once you have taken out burial insurance an in the event of your death, the insurer will release a lump sum payment to any surviving spouse or children. Tax may become an issue if the payment is to go to your children; it may be worthwhile thinking about putting the policy in trust to avoid such issues. Joint burial insurance policies are available but it is worth remembering that the insurer will only make a payment for the first death and none for the second.

The premium that you pay for a burial insurance policy generally tends to stay at a specified amount. One of the great features of these policies is that the insurers state that the death benefit you receive will not depreciate during the time the policy is active. A policy cannot be terminated unless the insurer detects fraud or premiums have not been paid.

If you are looking for burial insurance, you can contact your local financial advisor who will be able to guide you. Alternatively, you will find a lot of information and companies that are located on the internet who deals with the final expense that is involved after a death.

No site but FuneralInsuranceCost.com gives you all the tips and info on final expense and related subjects. Whether you are new to the subject or an expert, make sure to check out funeral costs by following the links above !