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The Ultimate Guide to the Basics of Burial Insurance

When it comes to Burial Insurance, “Burial Insurance” is term that is frequently used to cover funeral costs of a burial or cremation. Also, some other terms or words that are commonly used are “Final Expense Insurance”, “Funeral Insurance”, or “Cremation Insurance”. Furthermore, there are a lot of questions that are asked. For example, “What is Burial Insurance?” “How much does burial insurance cost?” What does the burial insurance include?”, and many more! We will do a deep dive into the basics of burial Insurance and you too, will be an expert.

Some Key take-aways will be..

Why are there so many funeral insurance ads?

What is burial insurance?

What is a final expense agent?

What does burial insurance cover?

Is burial insurance worth it?

What is the best burial insurance company?

How much does burial insurance cost?

How to bury someone with no money?

Why are there so many funeral insurance ads?

With the population of the senior market growing with an increase of 35% from 2008 to 2021, there seems to be a huge need for funeral or burial insurance. While turning 65, it does has his perks, but it also has its downfalls, by paying only $255 as a death benefit to help Americans out. Regardless of funds being available for seniors, you may see on why there would be such a need for funeral insurance ads. It’s rising and growing as high as 80.8 million elders, doubling the population since 2000.

What is burial insurance?

Burial insurance is a whole life insurance product that pays out immediately upon the passing of a loved one. There are a few other terms that are used in this industry as well, such as final expense life insurance or funeral insurance. Furthermore, this type of policy has a fixed- rate premium that is paid for the coverage, usually every month. Some commonly refer to this term as “Rate-Locked.” However, there are other payment options as well. There IS…a difference between burial insurance vs life insurance.

One question that you also may ponder is, “Well, what cremation insurance then?” Cremation insurance is a whole life policy that has a immediate death benefit that’s available to the pre-set beneficiaries upon the death of the insured. Thus, this would be referred as a cremation insurance policy. These are some types of life insurance that are mainly used for burial insurance.

What is a final expense agent?

A final expense agent is an agent that has to pass a life insurance exam through the state to have a certification to “practice”. Also, just like applying for a job, as being a final expense broker, one has to go through a strict application process to get approved by carriers to endorse their specialized senior final expense program and its value to you, the client!

What does burial insurance cover?

After obtaining a final expense quote, applying, and become approved. This type of coverage, pays out the amount applied for within 2-3 days of one’s passing. Additionally, there maybe “riders” that can be attached to the policy to bring more value to you as a customer. For each company, it could differ between various benefits. For instance, If we take Mutual of Omaha for example, Their final expense product is called “Living Promise”. There are two plans that is offered. Being approved, for the level benefit could mean that there are several options opened to you. Additional Benefits such as…

  • Accelerated Death Benefit for Terminal Illness or Nursing Home Confinement
  • A true burial insurance with no waiting period, paying the immediate death benefit
  • Optional: Accidental Death Benefit Rider
  • As well as always, a “Peace of Mind” to the beneficiary, your loved ones closest to you!

Is burial insurance worth it?

That’s a great question! Other’s may ask…”What are the pros and cons of final expense insurance?”

The pros of final expense are:

  1. A monthly premium that doesn’t increase
  2. A coverage amount that never decreases
  3. Potential additional living benefits
  4. A savings account “Cash Value”, that accumulates every year

There are some cons of these policies:

  1. There are some pieces of information that are need to acquire these policies.
  2. There are different rate classes that you may be put in, depending on health, hobbies, age, and habits.
  3. There must be a beneficiary designated on the policy.

What is the best burial insurance company?

The best burial insurance company, is the company that custom suits your needs and values that you deserve! Here are the top ten final expense companies of 2021, based on average premium and value:

  1. Trinity Life
  2. Mutual of Omaha
  3. Royal Neighbors
  4. Aetna/Accendo Life/Continental Life
  5. Liberty Bankers Life
  6. Foresters
  7. Prosperity
  8. Americo
  9. Security National
  10. Assurity Final Expense

Again, these are your top ten final expense companies based on premium and value.

How much does burial insurance cost?

An Average burial insurance policy would cost $70.83 per month. These premiums for burial insurance could be anywhere between from $5.13 for a male child at 1 year of age for $12,000 in coverage to a premium of $408.32 for a male at 89 years of age. Again, these premium would stay rate-locked at that premium for life.

How to bury someone with no money?

As you could imagine, this could be extremely difficult for their loved ones. We all know, or read about someone’s family that had to unfortunately go this route of having no money to pay for burial or cremation costs. One route that is typically taken is doing local fundraising, either by washing cars, or selling dinners to raise the funds. Some others include:

  • Donating your body to science
  • Getting buried in your backyard-“Not the ideal!”
  • Receive funds from Veterans Affairs VA

These are some of the commons way to pay for funeral expenses.

How to get a cheap funeral?

We may ask ourselves, “Well, How much are funeral expenses?” Here may be a guide on how to keep funeral costs down. As we know it today, a cremation is one of the best ways to get a cheap funeral. That is, if it fits your desires. There may be four different types of cremations that are made possible to the consumers today.

If you have more of a burial desire, there may be 2 options available. The absolute cheapest way is going with the direct burial choice. As clear as it may sound, the service is just that. With a burial shortly after passing, there will be no embalming necessary. There maybe other services held later. The other option would be a typical “traditional” funeral plan.