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Senior Burial Insurance Basics

By Marilyn Katz

Republish: EasyPublish™ Published: 24Feb2011 Word count: 571 Viewed: 159 time(s) Get Free Content For Your Site

Seniors, middle aged people, and other family members who care for these people, may have noticed some advertisements for burial insurance policies. Do you need a burial policy? Before you decide to buy or pass, please take a moment to understand what the products can do for you.

They are simply whole life insurance policies that have been developed to help families pay for burials, funerals, and other costs that tend to crop up when a loved one dies. They will not be the right solution for every family, but they can help some people come up with cash at a critical and stressful time.

They usually have a fairly small death benefit when compared to other types of life policies. Policy face values usually range from $2,500 to $25,000. Policy owners try to calculate how much money they will need so they can select the right amount of coverage.

They have also been designed so that it is easier and faster for older people to apply for. They do not require physical exams in order to complete the application process. Some applications do as a few heath questions. These are called simplified issue policies. Others do not ask any health questions, and these are called guaranteed issue policies. There are advantages and disadvantages to each type, so it is important to compare them so you find the best one for you.

A simplified issue policy will usually offer an immediate death benefit once the policy gets issued. They also tend to have lower premiums. If you can qualify for a simplified issue health policy, it will usually be a better deal.

Guaranteed issue policies may not provide an immediate death benefit. There may be a waiting period of 12 - 36 months. Insurers use this waiting period instead of a health application. Rates also tend to be a little bit higher than they would be for simplified issue policies.

Should you buy a burial policy? It is one way of making monthly payments in order to plan ahead for costs that families have to pay when a loved one passes away. Funerals in the US may cost $8,000 or more. Families usually have other costs too. Some people may have to travel. Others will need to take time off work. Guests wil have to be fed and housed. In addition to enduring the stress of having a family member die, families may have financial problems because of the other burdens.

A burial policy gives this family an easy way to plan for these expenses. The insured person, or a family member, may simply pay a monthly premium. In return, they will know that the policy will give them a cash benefit when the insured person passes away. If your family has a tight budget, a burial policy may be a good solution.

What if you do not need to spend the whole amount of the death benefit? If the policy beneficiary does not need to spend all of the money on final expenses, he or she is free to keep the rest. Most of the time, the proceeds from life insurance policies will not be taxed either. So a burial policy may also provide a way to pass on money to people that are left behind.

A burial policy may benefit you. Before you decide, it is important to compare different policies and rates to make sure you find the best solution for your family.

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