Everything You Needed to Know About Burial Insurance

Written By: John Howard on September 6, 2009 No Comment

The prospect of thinking about death and what happens after it is daunting; to relieve some stress it is wise to take out burial insurance. An alternative name you may find for this kind of insurance includes preneed insurance and funeral insurance. Essentially, it is designed to provide money to pay for a range of items after your death. This policy type should not be confused with burial protection insurance, which is solely for paying funeral costs.

It may surprise you, but funerals are not cheap; indeed, they are becoming more expensive each year. It is estimated that a funeral and the final expense that is associated with it, can cost as much as $10,000. Not only are there considerations such as purchasing a plot or choosing a casket, there are legal fees and outstanding debts to creditors to be paid for. By taking out burial insurance, you can receive a cash lump sum to help towards the costs of all the final expense involved when a life comes to an end.

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.

Applying for burial insurance is generally an easy and speedy affair which requires you to fill in a small application form. Some of the insurers may wish to follow up the application with a telephone call but it is unlikely that you will have to answer too many health related questions unless a waiting period is likely to be enforced.

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.

Many burial insurance policies will ask for a set payment which will not alter through the life of the policy. Another advantage is that the benefit will not decrease during the time that you have the policy. It cannot be cancelled unless the insurance company believes there is a case of fraud or payments are being missed.

Your financial advisor will be able to give you all the guidance you need to take out a burial insurance policy. If you prefer, you can contact many insurers who deal with helping with the final expense involved in death via the internet.

FuneralInsuranceCost.com is the Internet’s premier resource for graveside services, with facts and articles on topics such as funeral costs, and much more. Click the links above for more information !