Choosing The Best Burial Insurance Plan
Burial insurance rates vary greatly depending on your location, gender, age and family needs. Getting the best burial insurance rate for you can take time, but not if you use the help of a professional broker. The best way to get competitive burial rates is to find a local broker and let him or her do the work for you. This will eliminate the need to shop around for burial coverage, eliminating any guesswork on your part. A local broker will know every option for your area and can find you the very best deal available to you.
While it s nice to have such much choice, this can be quite overwhelming to attempt to determine which company and policy best suits your individual situation and narrow your options down. If you are still unsure which burial policy is right for you, check out online buyers manual at the end of this page for further helpful advice. Burial insurance is sold in two different forms: life insurance and whole life insurance. Whole life insurance policies pay a lump sum should you die. Life insurance rates vary depending on your lifestyle, age and whether or not you have other dependents. A whole life insurance policy also gives you some tax benefits should you die during the policy period.
You can protect your loved ones with either type of burial insurance policy. To be completely covered by a whole life policy, your family must have adequate income and assets to cover funeral expenses and legal fees, so this option is usually recommended for families with children and working adults who expect a higher level of living expenses after you die. Whole life policies come in two versions: Level Term and Increasing Term. With a level term, your premium is guaranteed to be affordable, even during the most recent economic downturn. Increasing term policies give you flexibility to choose payment amounts up to a certain point and maintain coverage at that level throughout your lifetime, but these policies also carry higher premiums.
The only drawbacks to a whole burial insurance policy are that they do not provide any cash value. If all of your unclaimed funds are invested, then you will have realized a profit. However, if no investment occurs, your loved ones will be left with virtually nothing in their pocket should they need it. Most funeral expenses are paid for by your loved ones, so this is not an issue. A Colonial Penn policy may be required to refund certain costs, depending on how much the casket is worth.
Another type of burial insurance policy for families with working adults is the Guaranteed Issue Cemetery policy. This is also a great choice for working parents. As with a level term policy, there is no investment option with Guaranteed Issue Cemetery. Your family will be required to pay an initial fee equal to 10% of the total cost of the funeral service. They will also have the choice to select from several pre-arranged burial options, as well as some unique options. In order to protect your loved ones from exploitation, you will need to make sure that the cemetery they choose has board members who are qualified to oversee the construction and maintenance of the property.
Finally, another type of burial insurance program is available to policyholders: the Limited Payment Program, also known as the VIP program. With this type of program, the cost of your funeral service is strictly limited to the amount of money in your checking account. Your loved ones will not receive any payment for your burial expenses until a certain amount of time has been passed. There is no medical exam required for this type of policy, nor is there any requirement to receive payments from your bank or other financial institution. Your application process takes just minutes and you can be assured that this type of policy does exactly what it promises.
Choosing the best burial insurance to meet your family’s needs is often a difficult decision. Because of the high cost of burial services, most families opt for a policy that will cover their funeral costs only up to the point where the insurance policy will not cover any more expenses. The average cost of a funeral varies greatly depending on a number of factors, including the size of the family, the financial status of the family, the desires of the deceased, and the overall health of the person. Because every individual has different needs, life insurance companies have created policies that cater to all different types of families. If you are researching policies to purchase that will cover your loved ones’ expenses after your death, you may want to consider consulting with a professional insurance agent to find out which type of coverage will be best for your particular situation.
Purchasing a funeral policy is one of the best ways that you can help ease the burden of your family’s funeral expenses. To make sure that you are making the right decision, consult with a local funeral director to ask questions and find out which policy options will be best for your family. Also, always keep in mind that an insurance policy does not pay for anything beyond the normal expenses that would be expected given your lifestyle, as well as those of your dependents. It is important that you understand everything that it provides coverage for so that you are sure that your family will not be put under any undue financial stress after your death.