How Much Does Burial Insurance Cost?
Burial insurance is simply a form of life coverage designed specifically to pay for burial and funeral expenses. Because of its flexibility in terms of the types of beneficiaries that may be chosen as well as the manner in which funds are dispersed, burial insurance normally has smaller death benefits and more moderate premiums than many other types of life coverage. This is not to say that burial insurance is not useful, however. If you are planning for your funeral or have already selected a beneficiary, burial insurance can help defray some of those costs.
To begin, take stock of how much you want to spend on your burial insurance policy. Decide how much you want to set aside for the funeral and what the rest of your family will be able to pay for after your death. This will help you budget your death benefit, which is the amount of money left in your policy to pay for your funeral. It can also help you decide what the total cost of your funeral will be. Remember, if you set aside money for the funeral, you will have money to pay for the rest of your family’s expenses after you die. In addition to deciding what your overall total cost will be, consider how much you would like to set aside for funeral expenses.
As you budget for your final expenses, also take into account any outstanding loans or credit card payments that you or your loved ones may still be paying. Estimate how much your mortgage, car loan, credit cards, and other debts will cost you upon your death. If you can, request copies of your mortgage and credit card statements from your mortgage company or credit card company upon your death. By doing so, you will have all of the information necessary to accurately calculate your burial insurance cost.
If you have other financial burdens, you may be able to transfer some of these to your beneficiary. For example, you can transfer the balance of your student loan debt to your children or grandchildren, depending on whether you will be able to collect them upon your death. You can also name a beneficiary for your parents who are dependent upon you financially. Financial burdens can greatly reduce your ability to pay for your funeral, which means it is important to choose one that is not burdened by financial burdens upon your death.
There are several ways how much does burial insurance cost. One method is through life insurance companies. Life insurance companies will normally require a person to purchase a sum of money called the “cash value” policy. This amount will remain with the company until your death; however, they will often give you an additional sum of money called the “cash surrender value” to pay for any outstanding debts upon your death. With all life policies, you can expect this sum of money to vary, depending on many factors.
Another way how much does burial insurance cost is through state regulated private foundations. In some states, there is a guaranteed acceptance program. If you pass away within a certain period of time after you purchased a guaranteed acceptance policy, your family will receive money from the state’s foundation in order to pay for your burial. The money expert can help you determine whether or not your chosen state’s guaranteed acceptance programs are adequate for your needs.
Your burial insurance premiums may also be determined by your income. If you purchase coverage that has a low premium but you earn too much money, you may pay too much. If you purchase coverage at a higher premium but you make too little, you may pay too little. By speaking to an insurance specialist, you will be able to get the answers to these questions so that you know exactly what is expected of you.