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As the name suggests, burial insurance is an insurance policy which ensures that in the event of the policy holder’s death, his funeral expenses can be taken care of without saddling his family members with unexpected financial burden. Burial insurance can also be used to pay off credit card debts of the policy holder which otherwise would have fallen on the family members’ shoulders. Contrary to life insurance which can be denied to an individual depending on factors like age or health, burial insurance cannot be denied. However, these factors could affect the premium payments or the policy value.

  • The first step towards procuring a burial insurance final expense insurance)  is to first determine how much your policy should be worth. Funeral expenses depend on a variety of factors like type of casket, type of headstone, type of or location of burial plot. Opting for cremation versus a traditional burial also has a significant impact on funeral expenses. Cremations are markedly cheaper compared to traditional funerals.
  • If the policy holder’s desire is to have a public or a private viewing, then costs of embalming would also need to be factored in. One should be aware that these costs are only going to keep increasing with time and it is better to plan and purchase burial insurance sooner rather than later. Heavily trending are the Green Burials where instead of embalming or using a coffin, burial mechanisms are designed to help the body decompose faster and become one with the Earth.
  • If one does not have a life insurance, then a burial insurance can be considered as a life insurance with the only motive being covering funeral expenses. On the other hand, if you already have life insurance, you can divert part of it to covering your funeral expenses. Naming family members as beneficiaries would provide them funds so they plan for a funeral and burial of your choice. You can also add your funeral director to be a beneficiary which allows him to use your funds for your funeral and burial the way you want it to be. In either case, the policy holder should clearly communicate his wishes to his family members or the funeral director respectively.

Burial Insurance policies can also provide claim payout in multiple ways.

If the policy is purchased with a single payment, then the claim payout will also provide all funds immediately to the beneficiary. This kind of payment is only allowed for older people. On the other hand, a policy paid for through regular premium payments provides a payout based on the number of payments that were done. So if the policy was paid for over a period of five years, then claim payouts will also happen in parts over a period of five years. The last kind is the traditional kind where as long as payments are made, full coverage will be provided but coverage stops if payments stop.

One can attempt to preempt price rises by purchasing certain items like headstones, coffin or burial plots from a funeral home. This would provide an added advantage whereby the family members are not burdened into making the choice, instead one can make it themselves.

One should also exercise caution during the purchase of burial insurance as there are certain unscrupulous agents in the market trying to make a quick buck. Regardless of the kind of insurance being purchased, it is always a good idea to research the insurance company and read any reviews that have been posted about the company. Similar care should also be taken to research funeral homes to ensure that business done is legitimate and does not end up creating trouble for your family later.