Electing to Protect Your Family with Burial Insurance

Burial insurance is something that doesn't go talked about that often and many times, awareness about what exactly it entails is pretty much vacant.

As you may be able to deduce from the name, burial insurance is mainly used to cover the costs of a funeral following death. For this reason, burial insurance is additionally often referred to as funeral insurance, or otherwise, final expense insurance.

Burial insurance generally refers to a whole life insurance policy. Whole life policies yield guaranteed payments at higher rates, usually with a benefit that spans from five to twenty five thousand dollars.

As you may be aware, funeral charges can be extremely high priced. Some of the costs you may pay for include the casket, cost of cremation, cost of embalming, a headstone, funeral transportation vehicles, digging, and cost of the plot. Funeral Resources gives an typical funeral cost of $6,000 to $7,000; not cheap.

Although burial insurance is somewhat similar to life insurance, sometimes people take out both policies if they don't want costs of the funeral to be funneled away in the life insurance policy. Having two policies makes things more straightforward as to how the benefits should be allocated after a person has died.

Things to Know

Even though the policy is termed burial insurance, you are in no way mandated to allocate the benefit to only the funeral. Things like home payments or debt reduction could also be done with the policy, making life easier during an otherwise challenging time.

Also, burial insurance policies don't change, meaning that they stay constant during the period of the policy. Once given a premium, there's no need to worry from then on; the price is steady and you should understand what to expect for the life of the policy. The policy also can't be canceled unless you fail to pay premiums or the policy is fraudulent.

Burial Insurance: A Synopsis

Overall, burial insurance is a awesome idea if you want to protect your loved ones. It's very similar to life insurance, but has more relevant nomenclature as compared to life insurance - meaning that comprehension is generally made to supplement the costs of the funeral. But the benefit can be divided elsewhere, meaning that any way you slice it, burial insurance is a responsible, protective tactic for anyone thinking about their family's future.