Final Expense Burial Insurance - 4 Types NOT To Buy
How to Buy Burial Insurance
Burial insurance, also called final expense insurance or pre-need insurance, ensures that your funeral expenses will be paid for without imposing a financial burden on your family. Burial insurance can also pay for other expenses such as your credit card debt so your family won't have to pay it. These policies require answers to health questions instead of full underwriting. Depending upon how the questions are answered will determine whether coverage starts immediately or after a waiting period. If the applicant only qualifies for coverage after waiting and dies before coverage takes effect, then all premiums plus interest are returned to the owner of the policy.
Determining Your Needs
Meet with a funeral director.Discuss the costs of a funeral and burial or research the details online. Funeral expenses vary greatly depending not only on the options you choose, but on location. They will also increase over time.
- A traditional burial requires a casket, headstone, burial plot and concrete liner. If you want to allow a viewing, you will also need to consider the costs of embalming.
- Cremation is less expensive than a traditional burial, requiring only an urn and the cost of conducting the cremation. You can choose to have your urn buried or placed in a vault, or you can direct that it be kept by family member.
- Green burials are becoming popular in some parts of the country. Rather than using embalming and a casket to preserve your remains, a green burial is designed to allow your body to decompose. This allows you to return to the Earth and become food for plants growing nearby.
Choosing and Paying for Burial Insurance
Think of burial insurance as a life insurance policy that has the specific purpose of covering your final expenses.If you already have life insurance, part of the proceeds can be directed for use in covering your burial expenses or you can buy a separate policy that only covers these expenses.
- Life insurance with a family member as beneficiary provides funds to the person who will plan the funeral and burial according to your wishes. You will need to discuss your wishes with that family member.
- Life insurance with a funeral director as a beneficiary allows the funeral director to use the policy's proceeds for your funeral and burial. You will make arrangements with the funeral director to provide the services you want.
Consider the different payment options and what each options affords.
- A policy purchased with a lump sum payment will provide the full value of the policy immediately--your beneficiary will have all the funds needed to provide the funeral and burial you want even if you die the day after paying for the policy. You may only be offered a policy with a lump sum payment if you're older.
- A graded benefit policy will provide a certain amount of the face value depending on how many payments you have made. For example, if you choose a policy that will be paid for in 5 years, your beneficiary will only receive all the funds after 5 years; if you die before then, your beneficiary will only receive part of the funds and will have to pay the difference or choose cheaper options.
- A traditional policy will provide full coverage immediately as long as you make the payments, but will be canceled if you stop paying.
QuestionWhere do I find information on a husband and wife policy?LifenetinsurancesolutionsCommunity AnswerIf you're speaking of a policy that has both applicants together, thus saving an annual policy fee, an independent agent will be able to help. If you're talking about a "first-to-die" or a "second-to-die " policy, this is more complex than an answer here could provide.Thanks!
QuestionI owe on a bill to a nursing home. Are they entitled to part of the proceed from the insurance?wikiHow ContributorCommunity AnswerLife Insurance proceeds generally are paid outside the estate and therefore are not part of the probate process. However, any legal advice should be from a licensed attorney in the State that holds jurisdiction.Thanks!
QuestionMy father purchased a full burial insurance from a company called NW Legacy, but they are apparently no longer in business and he has lost the policy. Is there a way to locate this policy?wikiHow ContributorCommunity AnswerA search on Google did not provide any information other than a Legacy Life Insurance Company. I would try them first and if not successful, call the State Department of Insurance where your father resided at the time of purchase. They will be able to tell you if such a company was licensed there and if they were purchased by another carrier.Thanks!
QuestionHow do I choose which type of burial insurance to get?LifenetinsurancesolutionsCommunity AnswerThere are many carriers that sell this type of coverage, however application questions can differ significantly. Your best bet is to find an independent life agent that specializes in this type of coverage so that any issues can be addressed prior to application.Thanks!
QuestionHow can I get someone in a nursing home burial insurance?LifenetinsurancesolutionsCommunity AnswerFinal expense coverage is not available to individuals in nursing homes. However, if the person is 80 or younger, you may wish to investigate a "guaranteed issue" policy.Thanks!
Is it possible to get life or burial insurance if I have a pre-existing health condition?
If, when you sign an irrevocable transfer and then don't want to keep it, are you out the money you paid in?
Is it possible to purchase a burial policy if I have cancer?
Is it possible to get burial insurance if you're more than eighty years old?
Is it possible to get burial insurance if you have kidney disease?
- Consider prepaying for certain items through a funeral home, such as a casket, headstone or burial plot. This will ensure that the price of these items won't increase. It also gives you the opportunity to make the selections yourself rather force your family members to try to determine what you would have wanted.
- This type of insurance is sometimes sold by disreputable companies. Before you buy burial insurance, investigate the company to determine how long it's been in business and whether clients have made complaints about it. Your best source for financial information on carriers is A.M. Best which rates all insurance companies. Choose a carrier that is rated at least A-under their ranking system. Perform an online search or inquire about the company with the Better Business Bureau. Similarly, take care in the selection of a funeral home so you can have some assurance that it will still be in business when you die.
Video: Burial Insurance - The TRUTH!
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