Many people may not realise how expensive funerals can be. When it comes to final expenses, it is not just funeral costs, but cemetery costs too. Sometimes, people may leave behind medical bills, mortgages or other debts which can become a burden for their family members.
To aid with final expenses, policies such as Colonial Penn Burial Insurance become an excellent choice. While burial insurance does not have a large death benefit amount, it is still sufficient to cover funeral costs, cemetery expenses, medical bills and more.
Selecting a Burial Insurance policy, however, can be quite challenging. According to industry experts like Gary P. Cubeta from “Insurance for final expenses” , it is essential to go through all of the features to ensure that you select one that works best for you.
Burial Insurance or Life Insurance?
Most people think that they have life insurance; they do not need to purchase burial insurance. However, burial insurance may be a wiser choice in some cases. On average, funeral expenses can cost upwards of $8,000, which is quite expensive and does not cover cemetery costs and other expenses that may pop up.
While life insurance coverage is sufficient to cover these final expenses, many people do not want their family members to dip into their life insurance benefits to cover final expenses.
For those who like to assign specific amounts for a particular circumstance, purchasing burial insurance makes more sense. Generally, burial insurance is seen as an addition to life insurance rather than a replacement.
How Does Burial Insurance Help You?
Policies from providers like Colonial Penn Burial Insurance come in different types; some are referred to as standard burial insurance, while others may be classified as pre-need burial insurance. Both types of policies help your family members cover your final expenses.
With standard insurance, your beneficiary receives the final death benefit amount after you pass away. They may use this amount to cover expenses related to the funeral, cemetery costs, urn, headstones and more. You can even opt for higher death benefit policies to ensure that family members have funds left over after the funeral costs are covered.
With pre-need insurance, the death benefit is paid immediately to the funeral home of the individual choices. Such a policy helps you ensure that any ceremony you want is already paid for, and your family members will not need to worry and stress too much about arranging the funeral.
Additionally, many people go for this policy since it allows them to purchase services which might be cheaper at the moment, than in the future. However, keep in mind that if the premium that you pay for the policy ends up being higher than the cost of the funeral, the remaining amount is not paid to a beneficiary.
Burial insurance may also differentiate with a guaranteed acceptance and a waiting period. With a waiting period, the policyholder has to pay premiums for the policy for a stipulated time before receiving any coverage. Burial insurance with no waiting period can offer immediate coverage after the application is accepted, and the first premium has been covered.
Informing Your Family
Burial Insurance is another way for you to take care of your family even after you are gone. While it may be unpleasant to plan for your funeral ahead of time, planning out final expenses ensure that your family members are not put under debt at a time when they are grieving.
After you have planned your final arrangements, it is imperative to let your family members know your wishes. Ensure that you have informed your beneficiaries of your policies and the terms and conditions related to them. They should be aware of the final amount they would receive, and your wishes regarding how it should be spent.