No one can deny the fact that life is followed by death, when, how, and where is hard to answer. As we age our health deteriorates and we start thinking that life is getting shorter and we must plan things for our final expenses also harshly called burial or funeral expenses because we do not want to burden our loved ones after our departure. Thus, this kind of expense is covered under burial insurance. That is why it is important for everyone to have an end of life planning checklist.
What is covered under burial insurance?
Since this type of insurance covers the final arrangements of the deceased hence it has fewer benefits than traditional life insurance. The insurance company will pay for the following,
- Transportation of the body
- Funeral services
- Making of casket or grave vault
- Preparation of grave
- Obituary news
- Making a headstone
- Cremation and burning.
Besides the above arrangements, the insurance can also cover the departed medical bills and other loans. It all depends on the type of policy that has been bought by the deceased. So, whether you are looking at a policy from globe life insurance or another provider, make sure that you do your research so that you are able to make an informed decision as to whether this policy is right for you, or whether you need to look elsewhere to find something that will meet your needs.
Who should purchase the final expense insurance?
The funeral insurance is mainly designed for seniors and promoted in people who are crossing their 40’s. Different burial insurance companies plan varying policies all based on age. The premium that you pay increases with age, hence it is better to buy it as early as possible to avoid incremented premiums. It is better to plan early but even if you do not, research and look into getting the plan that’s best for you and your final arrangements.
Robert Schmidt with Burial Insurance Pro states, ” Burial or final expense insurance premiums are partially determined by your age, and health at the time of applying. Because of this, you’ll definitely wish to lock in a policy while you’re younger and healthier. If you wait too long to obtain a policy like this, you may not be able to afford the premiums.
The advantages and disadvantages of burial insurance…
Every policy that you buy has its own pros and cons and it is good to understand and acknowledge the positives and negatives of what you are purchasing.
Advantages
- The qualification process is rather easy.
- No medical examination is required.
- No health-related questions are asked.
- You can pay for services and arrangements ahead of time.
Disadvantages
- Limited benefits
- If you do not have any medical problems then you won’t get any discount.
- It might be expensive if you sign up late
- The rate of premium you pay may cost you more than the expected funeral expenses.
Types of funeral insurance premiums
There are four different types of burial insurance premiums, choose the one that best suits you.
Levelled premiums
In this type of premium, the amount is locked as per your age, sex, and the value of your policy. The premium does not increase or decrease, it stays stagnant as long as you live.
Stepped premiums
As denoted by the name, the amount paid as premium increases annually all calculated and incremented considering your age, sex, and size of the death benefit.
Payout guarantee premiums
Your beneficiary walks out with a higher amount. It could be either the total amount of premium you have paid or the signed amount set by the insurance company.
Capped premiums
This kind of premium is signed for the age or the death benefit limit. If you sign up for the age limit and it’s set to be 75 years and you reach the limit then you don’t have to pay a premium after that age and vice versa. 
