What is burial insurance? It is a policy that pays the funeral expenses of a person who has died. Burial insurance programs were originally designed to pay for the burial costs of survivors and friends of the deceased. They do not typically require a pre-medical exam, and the policy can usually only require a few basic health questions. Rates are usually based on age and gender, with all other factors being taken into account as well. Go to Paradigm Life for more.
There are two main reasons why people buy burial insurance. The first is because they have already passed away, and have no family to pay the bills. This can be very depressing, and there is nothing worse than buying an insurance policy only to find out you don't qualify for it because you have pre-existing conditions. Another reason this type of insurance is purchased is when a person has a family member who is in need of financial support and wants to cover the costs of a medical exam and/or treatment. Most insurance companies offer discounts for purchasing burial insurance when it is purchased through an employer, so it is very often available through medical insurance plans.
There are a number of different types of burial insurance available, including individual policies, family policies, group policies, residual life insurance policies, etc. Most policies will offer some form of coverage in the case of a terminal illness, such as cancer or heart disease, as well as a policy in the event of a premature death. Although these policies can be less expensive, you should also consider the added cost of paying for the medical care of strangers who come to pay your final funeral expenses.
There are several different ways to purchase burial insurance. You can purchase it directly from an agent, and it will include a policy premium and an initial savings. You can also choose to set up a "deed of trust" with a particular financial institution that offers this type of life insurance policy. Another option is to set up a "specified beneficiary" on the policy which will allow family members to make payments in case of your passing. You will also have the ability to transfer funds directly from the life insurance policy to any other account in your name.
You can also opt for whole life insurance coverage, which is considered to be burial insurance in most cases. You do have to be extremely careful with this type of policy, however, because there will be a cost associated with paying your premiums and making your payments in a certain amount of time. Also, this type of coverage is only available to people who are at least age 30 years old. With whole life insurance coverage, you will pay a regular monthly premium, while your beneficiaries will receive payments for as long as you live. However, in order to qualify, you must have paid at least one year of premiums on an unsecured, universal or joint life insurance policy.
If you decide to include a beneficiary in your burial insurance policy, the payments you make to them will be applied to your burial costs. If you have a child who is dependent on you financially, you can include them as a beneficiary. They would receive the death benefit, plus their monthly payment, in case you die before they reach the age of majority. Another beneficiary may be someone close to you who may need money to cover the cost of medical treatment or to cover the cost of leasing a home if you are not able to continue to provide the funds. It is important to note that if a beneficiary makes payments before you die, they will not receive anything if you pass away beforehand. Go to Paradigm Life for more.
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