Burial insurance covers the cost of laying a loved one to rest and removes that financial burden from the immediate family.
In most cases burial insurance is a stand-alone policy and is obtained by those who might, for one reason or another, have difficulty obtaining standard life insurance to cover burial costs.
Acceptance for burial insurance is usually guaranteed with no physical examination necessary.
Below, our product experts have brought together 14 benefits of burial insurance for your consideration.
14 Benefits Of Burial Insurance
Grieving family members have enough on their minds without having to worry about covering the cost of laying their loved one to rest. That’s where burial insurance comes in. These simple, straightforward policies provide an array of benefits including:
1: Burial insurance reduces the burden on loved ones.
When a member of the family passes away, people need time to grieve, to remember, and to adjust to the new reality. The last thing they want is to think, “Can I afford the kind of send off my loved one deserves?” Burial insurance is an easy way to lift the burden of funeral costs off the shoulders of the people you love, so that everyone involved can move on in a dignified way.
2: Burial insurance doesn’t leave people waiting.
With many types of insurance, getting a payout from the insurance company is like pulling teeth. Only not as much fun. There may be visits from the agent, forms to fill out, offers, counter offers, medical records searches, reams of paperwork, doctor’s statements, and who knows what else. In all, it can take months to receive your benefit (1). With burial insurance, most policies pay off within 24 – 48 hours.
3: Burial insurance ensures you get the kind of funeral you want.
Everyone deserves a respectful sendoff that’s in keeping with their beliefs, tastes, and desires. But not everyone can afford what they have in mind. Burial insurance is the best way to guarantee that your final statement is one that speaks to the kind of person you were and the kind of life you lived. You only get one shot at it. Burial insurance will make sure that it’s a memorable experience for all the right reasons.
4: Burial insurance allows you to get on with your life.
This is a slightly ironic benefit, but a real one nonetheless. Selecting the right burial insurance for your situation will enable you to get on with the important work of fishing, traveling, or writing that Great American Novel. You can move forward confidently into the future, knowing that you and your loved ones are covered for any eventuality.
5: Burial insurance is affordable.
While the cost of healthcare continues to climb, the cost of burial insurance remains affordable. Dollar for dollar it’s one of the most cost-effective ways there are to obtain peace of mind and ensure no one will be left struggling to deal with unexpected funeral expenses.
6: Burial insurance can be a valuable financial tool.
With some burial insurance policies you can borrow against the principal should you find yourself in a tight spot. This gives the policy real-time relevance and makes it as much an investment in your life today as it is a way to ease the burden on loved ones after you’re gone.
7: Burial insurance is straightforward.
The life insurance policy as most of us understand it can be a complicated thing. There are different types of plans, different payout options, estate settlement, clauses, subclauses, exclusions, riders (2), and more. It’s enough to make your head spin. Burial insurance, on the other hand, is blissfully simple. You buy the policy, and when you die, the benefit is paid out to the person you indicated, and that is that.
8: Burial insurance funds can be used for other things.
In some cases, the family of the deceased will be well able to cover the cost of a burial. As such, when the burial insurance payout arrives from the insurance company, it is not needed to cover funeral-related costs. In that case, the beneficiaries can use the money in whatever way they see fit.
9: Burial insurance payout is the same regardless of burial costs.
Why is that a benefit? Because if the deceased has $10,000 in burial insurance, but the total cost of the funeral and burial is $7,000, the family can use the rest for other things. That can be helpful in covering the cost of food during the grieving period. But it can be used to cover any other expense, or rolled over into a savings account for the grandkids.
10: Burial insurance leaves your legacy untainted.
When people die without leaving any provision for taking care of the funeral expenses, things can get testy. At a time when family members should be united in grief and trying to help one another transcend their loss, they can wind up bickering about who is going to pay for what. Fair or not, some will blame the deceased for creating such an uncomfortable situation.
11: Burial insurance isn’t just for the very old.
Every year, hundreds of thousands of Americans between 50 and 65 die of various causes. Many of them still have college-age children and are the active breadwinner for their family. It is important that these people are covered in case the unthinkable happens. Burial insurance can make a big difference for loved ones rocked by the premature departure of a spouse or parent.
12: Burial insurance is more flexible than a funeral bond.
A funeral bond is a fairly strict form of burial insurance. The bond is considered a type of investment intended for one purpose and one purpose only: to pay for the funeral and burial. Burial insurance plans are more flexible. With most, the insurance company will disperse the funds to the beneficiary with no ironclad instructions as to how the money should be spent.
13: Burial insurance dovetails with all belief systems.
Each faith has its own traditions and procedures that need to be respected. At the same time, agnostics and atheists also have an absolute right to have the kind of service they want and to be laid to rest in a manner of their choosing. Burial insurance makes no value judgments regarding religious beliefs or a lack thereof.
14: Burial insurance is the responsible thing to do.
Nobody wants to spend part of their one and only life planning for its end. But endings happen. Just like illness happens and injuries happen, and layoffs happen. Most people have no problem planning for those possibilities because it’s the responsible thing to do. And it’s the same with planning for burial expenses. Avoiding the subject will not make it go away. All it will do is shift the financial burden to someone else.
Burial insurance provides loved ones the peace of mind of knowing that no matter what they will be able to provide a respectable burial for the deceased. If they are able to cover funereal costs themselves then they can even keep the burial insurance payout to use for other things. If you or someone else in your family is getting on in years consider a burial insurance policy. You may sleep a little better at night.