Burial Insurance Comparisons and Questions
by Burial Insurance Comparisons and Questions
Burial Insurance Comparisons and Questions What Are Burial Life Insurance Policies? Burial policies are sold as a form of life insurance. They have been developed to be affordable ways for many families to plan to pay for the cost of a funeral when a loved one passes away. Since US funerals can average $8,000 - $10,000 or more, it is important to be secure in the knowledge that the family will have the funds to pay for it. Many funeral policies are whole life, meaning they are permanent policies which will cover the insured person for their entire life. They usually have a fairly modest face value when compared to other policies, and they range from about $2,500 to $25,000. This smaller face value means that it is easier to get them issued, and it keeps the premiums more affordable for average families. How Much Does Burial Insurance Cost? The premium will vary by the applicant's age, general health, location, insurance company and type of policy. This may seem complicated, but it is possible to find online insurance rate quotes online which can help you compare policies and premiums. It is important to compare quotes before you buy because some insurers may have underwriting guidelines that are friendlier to different applicants. Of course, a 50 year old can expect to pay a lot less than an 80 year old. The more elderly senior may even pay 3 times as much. But still, funeral policies can be affordable option vs. the alternative of having to save several thousand dollars on short notice. How are Guaranteed Issue and Simplified Issue Policies Different? There are usually 2 basic types of burial policies. The types are based upon the way that the insurer issues the policy. A simplified issue policy will ask a few health questions, but most older people in decent health for their age should qualify. A simplified issue policy usually has an immediate death benefit. This means that the insured person is covered for the whole amount as soon as the policy is issued. A guaranteed issue policy is quite different than most type of life insurance because it does not require any health questions at all. Instead of health underwriting, it uses a waiting period. It may have something called a graded benefit. This means that the insured person must survive a waiting period, after the policy is issued, in order for the beneficiaries to collect the whole death benefit. If the insured person passes away before that waiting period expires, the family may get a portion of the full benefit, or they may just get premiums refunded. This is why it is called a graded death benefit, and it is not an immediate death benefit. Why Compare Burial Policies A simplified issue policy is generally cheaper too. So if you, or your family member, can qualify for simplified issue, I would urge you to consider that option. A lot of the senior life policies you see advertised on TV are guaranteed issue, so it is always important to compare plans and policies before you buy! Guaranteed issue life insurance can be a good alternative for some seniors with severe health issues, but we just want you to understand your choices. Would You Like To Compare Burial Life Insurance? Let us help you find cheap burial insurance rates with our fast and free online quote forms. We want to help you compare insurance with consumer tips and free online quote forms!
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