Life Insurance Made Easy: Burial Life Insurance

Written By: Michael Cobbs on August 16, 2009 No Comment

by Michael Cobbs

As we grow older, it is more important to think about investing in some burial life insurance. Not only does it make sense to alleviate the burden of those you leave behind in terms of costs but it will give you peace of mind for the rest of your natural born days. This kind of policy is designed to ensure that you have funds after you have passed on to pay for other debts and fees as well as the actual funeral itself.

There are several different kinds of burial life insurance you can choose from and it is best to research all the options before deciding on one. Different kinds of policies may have different rules to follow and this may affect your decision. Let us take a look at the kinds of burial life insurance you can choose from.

It is a common misconception that they only type of burial insurance you can get is to specifically cover funeral costs for things such as graveside services – and nothing else. There are others, but you can indeed purchase this type of policy which is called a “Pre-Need Insurance Plan”. It will solely only pay for costs associated with your funeral and cannot be used for payments towards anything else. This plan is widely available from funeral homes and the beneficiary can only be a specified funeral home. This way they can ensure that the funds are used for the purpose of the policy. A funeral director can meet with you to arrange the requirements for the actual day and so set your mind at ease. It is recommended that you carefully scan the documents that you are given; it is important to confirm that there will not be any further costs in the instance of your death. The main benefit of this type of plan is that you know that all of the necessary arrangements are in place; friends and relatives can spend the day concentrating on saying goodbye to you.

Policies known as Burial Insurance and Final Expense Insurance are actually the same policy, they just have different names. As well as funeral costs, the funds from these plans can be used to pay creditors and any other outstanding debts in your name. The beneficiary does not have to be a funeral home; it could be anyone you choose it to be, unlike the Pre-Need plans. You can discuss the finer points of where you would like the money to go with the beneficiary and they will see that it is done after you pass on. Burial life insurance policies such as these can be bought from specialized insurance agents and providers.

Finally, there is burial life insurance which is deemed to be Insurance with No Physical Required. This is the common option for many older people, usually between the ages of 50 and 80, who have no current medical conditions. The funds from these kinds of policies can also be used for other means apart from graveside services, memorial services or a traditional funeral. Perhaps medical bills and legal fees will need to be settled after your death and the extra funds could be used to clear these off.

If you are in reasonable health you can take out what is known as a simplified policy option. It is typically the case that the insurer will start a policy without asking for you to have a medical examination or answer queries relating to your medical history. The payment amount that you will be asked to make will be small but must be paid on time. In the event of your death the death benefit will be paid out to the beneficiary as soon as possible.

If it is the case that you are already experiencing a serious medical condition, then you may be offered a guaranteed policy. The fundamental difference between this policy and a simplified one is that the insurer may stipulate that there is a waiting period of two or three years before benefit can be paid out. Should you perish before this time is up, the premiums will be refunded; if not the benefit will be paid out in full. Premiums tend to be a bit higher with this policy than that of the simplified option.

These are the options open to you when it comes to burial life insurance. Forward planning for any type of funeral, whether it be graveside services or a traditional memorial service, should take precedent before you die. You can find plenty agents online or contact them in person or by telephone.

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