If you are an adult, you are probably familiar with the complexities of the insurance industry. There are several different kinds of insurance available to us. Whether you need your car, house or phone insured, chances are there’s a policy out there for you. While I specifically deal with life insurance policies, I am not opposed to speaking about other policies, especially when they just so happen to intersect so closely with my niche. In today’s blog, I will specifically be covering burial insurance, and hopefully after reading this, you will have a better understanding of it and be able to decide on whether or not you need it.
What is it?
Burial insurance, in layman’s terms, is an insurance policy that will pay out in the event of your death. So far, it sounds very similar to a life insurance policy, right? Well it does differ in some respects. Firstly, burial insurance is specifically a whole term, or permanent, policy that you will pay for the remainder of your life. And secondly, most burial insurance policies have payouts that range from $5,000 to $25,000, whereas life insurance policies can have much larger payouts. The application is much less extensive than that of a life insurance policy. When applying for a burial application, you typically are not required to go through a full-fledged medical exam; you simply answer a few health-related questions. You are also virtually guaranteed a policy.
How much does it cost?
Payments for burial insurance are typically not too exorbitant. Most are paid on a weekly or monthly basis at a small number, such as $3 per week. The death benefit depends on the policy holder’s age and premium amount, so exact numbers can not be given.
Is it a good idea?
While the decision is ultimately up to you, I can offer my opinion. Most burial insurance policies are not all that great. If you simply cannot afford a standard life insurance policy, then burial insurance might be a viable option to cover funeral expenses; however, if you can help it, stay away from burial insurance. The death benefits are small, and the premiums, in the long run, tend to cost way more than you will get back. Again, these types of policies will really only be able to cover funeral expenses, and some families or individuals will require that and so much more.
Again, when all is said and done, the choice is ultimately up to you, but I do believe that it is in your best interest to go with a life insurance policy and to steer clear of burial insurance.