Many people do not like to think about the end of their lives; but it is important to consider something such as burial insurance. This type of policy, sometimes known as a preened insurance policy, is designed to provide funds for when you pass away. Some of these policies differ from a burial protection policy, which only covers funeral expenses.
You my understandably think that there is relatively little cost involved in a funeral but surprisingly, they can cost a considerable amount of money. Indeed, it is common for the final expense to be in the region of $10,000. Not only are there the casket and the hearse to consider, there is the funeral director’s fees and outstanding medical bills to be settled. If you take out a burial insurance policy the funds will be available to make sure that all final expense is taken care of when a loved one passes away.
These kinds of policies are usually only available to people in the age range of 50 to 80 and you will find that there are two types of burial insurance to choose from. These options are called simplified and guaranteed burial insurance policies. Firstly, the guaranteed policy is designed for those people who are already considered to be of ill health; these people can sometimes find it difficult to get a simplified policy. The premium that has to be paid regularly is generally a minimal amount but some insurers may stipulate that there is a waiting period before any payout will be considered. If you are unfortunate to pass away before the end of this specified timescale, the premiums you have paid will be returned. If you pass on after this timescale has ended, then the full benefit will be released.
A simplified policy is for those who are in good health and want to start planning for their death before it is too late. Again, you will make regular payments, but they may not be as much as those of a guaranteed policy as you have a predicted longer life span. In any case, whatever happens after the policy is taken, you will receive the funds.
Many of the companies who provide burial insurance will have a small and easy application form for the recipient to fill in. This may then also be concluded with a telephone interview from the company. There may be no or little health related questions, but the company may request that there is a waiting period applied to the policy instead.
In the unfortunate scenario of you dying, the burial insurance policy will release funds to your spouse or to any children you may have. If you have stipulated that the payment be made to you children, it may be worth considering placing the policy in trust; this is because there may be issues that arise in relation to tax. It is possible to take out a joint burial insurance policy for you and your partner. It should be noted that with this option the policy will only payout once for the first death; no other payment will be made when the second person passes on.
Many burial insurance policies will ask for a set payment which will not alter through the life of the policy. Another advantage is that the benefit will not decrease during the time that you have the policy. It cannot be cancelled unless the insurance company believes there is a case of fraud or payments are being missed.
Your financial advisor will be able to give you all the guidance you need to take out a burial insurance policy. If you prefer, you can contact many insurers who deal with helping with the final expense involved in death via the internet.
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Tags: burial, burial insurance, death, dying, final expense, funeral, funeral insurance, life insurance