Do you need burial insurance. Did you know that it existed? Burial Insurance is a type of funeral expense life insurance policy but it is not always thought about. It is designed to cover the cost of your funeral expenses when you die. Because many people don’t realize the cost of a funeral, it can catch you by surprise. a funeral can cost thousands of dollars. So don’t forget to plan ahead. This can sometimes lead to a financial hardship on families or loved ones who must cover the costs.
Burial insurance, also known as final expense or funeral insurance is generally a small whole life insurance policy with affordable premiums designed to pay all final expenses. No exams are required, serious health issues will not prevent acceptance, and coverage typically ranges from $2,000-$40,000 with most companies.
A whole life final expense policy has very minimal fine print, but here are the most important details:
- Rates are locked in for life and cannot increase
- Coverage is guaranteed to never decrease
- Policy is guaranteed to never expire
- Builds cash value you may borrow from
Burial Insurance Pay Out
Once you pass away, the insurance company will merely payout the death benefit in the form of a tax free check payable directly to the beneficiary(s). So, if you prefer, you can name a funeral home as the beneficiary rather than a person. As a result, you control where it goes.
Because there are no restrictions how the money is spent, you may spend it on funeral related expenses or other costs such as debts or medical bills. The money can technically be used for anything to help you out after a death occurs. So, any leftover money will remain with your beneficiary(s) not the funeral home.
We offer burial insurance here at Peterson and Grantham so you can be protected. Our coverage is great and our rates are as well.