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Details About Burial Insurance

Burial Insurance is Less Well Known But Pays Off

Final expense plans, otherwise known as burial plans, are essentially small life insurance plans that are created to handle the last expenses a family must take care of for them.

For people between the ages of 50 and 85, burial insurance is often offered. Some insurance companies will still offer the coverage to people that are over the age of 85. Burial insurance policies are a type of permanent coverage, as opposed to a term life policy. The coverage and policy do not expire as long as the premiums are paid. Policies also include a cash value component, meaning tax-deferred savings can be built up over the course of the policy. Funds may be withdrawn or borrowed against if the policyholder chooses to. These loans, if unpaid, or withdrawals will go against the policy's death benefit though, so keep that in mind.

Types of Burial Insurance

When it comes to funeral insurance plans, there are two main levels available:

Level Benefit: A policy where the full face amount will be in-force as soon as the application is approved.

Graded Benefit: A policy where the full face amount will not be in-force until after a 24-month waiting period has passed. If death comes to the insured person before the period has passed, the insurance company will return the premiums that were paid, with some interest. The amount of interest paid varies by insurance company.

Graded Benefit Plans are for those with severe health conditions. They are a form of Guaranteed Issue life insurance plans (for ages 40-80). This is due to there not being requirements for health questions, it is a plan that you cannot be turned down for. If you have a serious health impairment, this may be a good plan for you.

Level Benefit Plans are for people that have some more minor health issues or impairments. There are many types of impairments covered, so quotes can vary.

One unique attribute of these plans is that you can possibly be both the owner and the beneficiary of the insurance policy. It can be a way to offset funeral costs, which is one reason that children of elderly parents look into it. Your parents must sign the plan and will likely be interviewed to make sure they understand what the application is for. The interview and signature are ways to help prevent people from taking out a life insurance policy against them without consent.

Other Information about Burial Insurance

  • You can usually get a maximum limit of $50,000 for funeral policies, but there is a small number of companies that may higher. If you need more, consider a universal life insurance policy.
  • Most insurance carriers will issue plans for people between the ages of 50 and 85. For insurance companies that issue plans for the higher ages, the plans get more expensive.
  • People that do not have a lot of debt and do not have family that relies on their income are often a good fit for burial insurance.
  • People that don't want to pay the premiums for a traditional life insurance policy that gives more coverage should consider this plan. It helps cover funeral costs and the premiums are much lower than traditional life insurance.
  • There is no medical exam required, a person's health will not prevent them from getting coverage

There is no need to spend hours and hours getting the needed information, our quotes are fast and efficient. We are happy to answer any questions you have so you can best plan for future expenses that have an impact on your life or the lives of those you love. Each person has different needs and preferences, so our versatile policies are great for almost all needs.

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