Burial insurance is something that most consumers don’t even consider as an option. Many don’t know that it even exists. This is a good option to have in place in addition to life insurance. Sometimes life insurance just isn’t enough to cover all of the final expenses after medical bills and household expenses.
No Life Insurance
If you do not have life insurance at all, at least consider obtaining a burial insurance policy. These policies are specifically for funeral expenses. Families don’t often have the funds on hand to pay for a funeral when an unexpected death occurs. It is important to have a burial expense policy in place to take care of this and avoid one of the biggest mistakes.
Life insurance policies are also a good idea. Most consumers have the wrong type of policy in place, such as a term life policy. These expire after a period of time and the consumer fails to secure a new policy afterwards.
Easier to Obtain
It is difficult for some members of society to get affordable life insurance due to their age and/or pre-existing health conditions. In most situations, obtaining burial expense insurance does not come with all of these restrictions so it is far easier to obtain. It is ideal to secure a policy that is about one and a half to two times more than the average cost of funerals during the year that you purchase the policy. This ensures that you are purchasing enough coverage should expenses inflate significantly if you live far into your golden years.
Acts as a Backup Funding Source for Final Expenses
If enough life insurance is not in place, the burial expense insurance is available. This coverage should be used for its purpose and the life insurance can be used for medical expenses and other final financial obligations. In 2014, the average, simple funeral costs $10,000 – $12,000, within the next decade, the cost of a funeral is projected to rise an additional $5,000. Take these numbers into consideration when purchasing a burial expense insurance policy.
Making sure that your family has the funds to cover your finale expenses is important. It is a huge financial strain on a family to attempt to pay for these expenses out of pocket, even with several people contributing. Fundraisers take time to setup and there is no guarantee that enough funding will be raised. Ensure that your family will not have financial stress by having the appropriate policies in place.