What is Burial Insurance
Burial insurance is a type of life insurance used to pay for memorial facilities and produce costs after death. It is very easy to buy this insurance. The policy can be bought online or by telephone without waiting for an insurance-company doctor exam. Burial insurance does not need a medical exam at all. Applicants are asked about age, smoking history, and whether they have any long term or short term sickness conditions. For some policies, acceptance is guaranteed. Others require a two-year premium -paying period before collection is possible and only provide coverage to 100 years of age.
Burial Insurance seems more beneficial than medical and life insurance in many ways. Burial insurance is a cash policy, which means it makes a cash value over time. Burial insurance can be purchased for small amounts, such as $5,000 and $10,000, but medical and life insurance may require substantially larger minimum coverage. The premiums for burial insurance may therefore appear more inexpensive than bigger benefits policies. Premiums for this type of insurance do not alter, and this policy delivers perpetual coverage. Some of the costs covered by this insurance include a funeral facility, graveyard plot and headstone, casket, a funeral parade, and other various costs.
Consumer supporters have elevated red flags about funeral insurance. Some consider it a greedy type of insurance embattled to people who tend to be less educated, minority, and low-income. That a medical exam is not required and taking is surefire means the pool of insured people is high risk. For the insurer to make a profit, the premiums have to be high relative to the advantage. Yet most people, even with simple health issues, qualify for policies many times better than burial insurance.
If the persistent issue is to make sure there are sufficient funds presented to stayers to pay for a funeral and settle bills, a term or lasting life insurance can be obtained. If the main concern is to ensure that the individual’s biddings for burial, cremation, or memorial service will be funded and followed, and the death is anticipated in the next few years, it may also pay to make pre-paid pre-need arrangements with a funeral provider.
Another policy for making sure survivors have money to pay for final costs is to contribute frequently to a savings account for that determination, set up either as a trust or simply as a joint account with a selected survivor. This money could be withdrawn directly if needed after you die; survivors won’t have to delay for it.