The prospect of thinking about death and what happens after it is daunting; to relieve some stress it is wise to take out burial insurance. An alternative name you may find for this kind of insurance includes preneed insurance and funeral insurance. Essentially, it is designed to provide money to pay for a range of items after your death. This policy type should not be confused with burial protection insurance, which is solely for paying funeral costs.
It may surprise you, but funerals are not cheap; indeed, they are becoming more expensive each year. It is estimated that a funeral and the final expense that is associated with it, can cost as much as $10,000. Not only are there considerations such as purchasing a plot or choosing a casket, there are legal fees and outstanding debts to creditors to be paid for. By taking out burial insurance, you can receive a cash lump sum to help towards the costs of all the final expense involved when a life comes to an end.
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.
The second option, a simplified policy, is available for those people who are considered to be in good health and want to make funeral arrangements whilst they are still able to do so. Premiums will be paid in pretty much the same way as a guaranteed policy; you may find that the premium is slightly less due to the longer life expectancy. Whatever happens after the policy is taken out, the funds will be released upon your death.
Applying for burial insurance is generally an easy and speedy affair which requires you to fill in a small application form. Some of the insurers may wish to follow up the application with a telephone call but it is unlikely that you will have to answer too many health related questions unless a waiting period is likely to be enforced.
Once you have taken out burial insurance an in the event of your death, the insurer will release a lump sum payment to any surviving spouse or children. Tax may become an issue if the payment is to go to your children; it may be worthwhile thinking about putting the policy in trust to avoid such issues. Joint burial insurance policies are available but it is worth remembering that the insurer will only make a payment for the first death and none for the second.
The premium that you pay for a burial insurance policy generally tends to stay at a specified amount. One of the great features of these policies is that the insurers state that the death benefit you receive will not depreciate during the time the policy is active. A policy cannot be terminated unless the insurer detects fraud or premiums have not been paid.
If you are looking for burial insurance, you can contact your local financial advisor who will be able to guide you. Alternatively, you will find a lot of information and companies that are located on the internet who deals with the final expense that is involved after a death.
Tags: affordable life insurance, burial, burial insurance, death, dying, final expense, funeral, Funeral insurance, life insurance