Essential Things You Need to Know About Burial Insurance
Death is inevitable, which could happen anytime to anyone. Also, departing from this world, incurs expenses such as a funeral or memorial services, headstones, and urns, to name a few. This is why individuals must prepare for it emotionally, mentally, and financially too. This is where burial insurance comes in.
If you are currently searching for burial insurance, then you have come to the right place. This will answer some of your questions such as “does statefarm offer burial insurance?” and discuss the essential things you need to know about burial insurance.
What is Burial Insurance?
Burial insurance is also known as “funeral insurance” or “final expense insurance.” Essentially, it is a life insurance policy that is one of the most helpful tools in paying for the funeral expenses of deceased individuals.
Burial insurance is beneficial for family members that will be left behind so that they can pay for funeral arrangements and even pay off undischarged bills or debt incurred by their departed loved ones. Burial insurance can help pay for unpaid medical bills, credit card debt, mortgage loans, and personal loans.
What are the Types of Burial Insurance Premiums?
Burial insurance premiums differ depending on the amount that you will pay for the policy for a given period. The different types include the following:
Capped Premiums
Capped premiums have a set age or monetary limit. If a particular individual reaches that limit, he or she keeps the coverage, but no longer has to pay for the premiums. For instance, if you have a capped premium at $5,000, you no longer have to pay premiums once you’ve paid this amount.
Stepped Premiums
Stepped premiums are paid annually, and the rate is calculated using age, sex, and amount of death benefit when the policy is renewed. The premium rate is lower at an early stage, but you will have to pay more annually as you age.
Payout Guaranteed Premiums
This type of burial insurance premium guarantees that your beneficiary will get paid either by the original insured amount of the policy or the exact amount of premiums you have paid.
Leveled Premiums
Much like stepped premiums, leveled premiums are also calculated using age, sex, and the size of the death benefit. However, the rates don’t increase despite changes in age or health.
Who Needs Burial Insurance?
Burial insurance is a life insurance policy that should be purchased by every senior citizen or individuals that are preparing for end-of-life. This is why burial insurance is best suited and recommended for individuals aged 50, up to 85.
However, keep in mind that plans get more expensive as you grow older, so it would be best that you start as early as possible, preferably before retirement. Some companies offer this type of insurance, even for individuals as young as 30 days of age.
More Affordable
One of the biggest advantages of burial insurance over traditional policies is that it is seemingly inexpensive. Conventional whole life or term life insurance policies require a larger minimum coverage policy that can range from $50,000 to $100,000. On the other hand, burial insurance can be bought for substantially smaller coverage amounts, such as $5,000 and $10,000.
If you have questions such as “does state farm offer burial insurance?” or “is state farm burial insurance expensive?” then the answer to both of these questions is yes. There is no shortage of companies that offer burial insurance in the market today; the problem is finding the right one. Comparison shopping for burial insurance is important because you will discover companies that charge a hefty premium for coverage.
Easier to Get
Burial insurance is relatively easier to get compared to other life insurance policies. Applicants can purchase policies online or through the phone without being subjected to a physical medical examination.
Individuals are asked about their general information such as age, use of tobacco, and whether they have medical disorders or any serious health conditions. Some burial insurance policies also cater to sick people who can’t qualify for traditional life insurance policies. These policies are termed as guaranteed issue life insurance, according to Investopedia.
Purchasing burial insurance for yourself is one of the most significant things that you can do for your family. It is a gesture of your love for them that they no longer have to struggle to pay for your final expenses when you depart. Be sure to set a meeting with an insurance agent or company today and start preparing for the future.
