Burial Insurance Purchasing Guide
Insuremyburial.com provides the most comprehensive burial insurance purchasing guide available anywhere online. With so many choices of burial life insurance policies, it is important to select the best protection for your needs. The InsureMyBurial.com buyer's guide empowers consumers with powerful, unbiased information. Armed with the latest information, you can be educated and ultimately make a well informed buying decision. There are several factors to consider when choosing or buying a burial life insurance Policy.
Burial Insurance - Key Considerations
- Policy Size -
The policy size, also known as the death benefit amount or coverage amount, typically ranges from $1,000 - $50,000 for burial insurance policies. The death benefit or policy size indicates the amount of money that would be paid to a beneficiary when an insured dies. Since burial insurance serves a different purpose than other types of life insurance, the coverage amount purchased should be based on the anticipated cost to have a funeral and bury a loved one, in addition to the immediate financial needs of the family members left behind.
Burial life insurance policies pay beneficiaries much faster than other types of life insurance policies. They can distribute money to beneficiaries within days or a couple of weeks within a claim being filed. Whereas, other types of life insurance make take a few months to pay a death benefit claim. Consequently, when calculating the appropriate insurance policy coverage amount, families should estimate the funeral costs first. Click here if you want to learn more about how much funerals cost. After the funeral costs are accounted for, the second thing to consider is the amount of money the family will need immediately following a loved one's death. For example, are there any immediate debts that will have to be paid? How much money will the family need to pay living expenses or bills immediately after a death? In addition, how much money will be needed to sustain a family until a larger, traditional life insurance policy distributes money to beneficiaries a few months later?
- Policy Type -
Burial life insurance are typically offered as one of two different types of insurance policy. Term life insurance and Whole Life Insurance.
- Term Policies: Term life insurance policies are designed to provide coverage for a predetermined amount of time such as 1 year, 5 years or even 20 years. When that policy term has concluded, the insurance coverage goes away.
- Whole Life Policies: Whole life policies are a type of permanent life insurance. Unlike term policies, Whole Life insurance, provides insurance coverage for an insured until they die as long as the premiums are paid. The most popular burial life insurance policies are Whole life. In fact, many burial life insurance companies only sell Whole life burial policies and do not offer term burial insurance policies.
- Insurance Carrier - All burial insurance carriers, also known as burial insurance companies, are not created equal. A burial life insurance policy is a promise, by the insurance company, that they will pay the death benefit when the insured dies. It is very important that policy owners have faith and confidence that the insurance company can fulfill that promise and ultimately pay the death claim. To help consumers understand the financial strength of each insurance company, independent rating agencies evaluate each insurance company's financial security and ultimately their ability to pay beneficiaries when claims arise. Some of the more prominent rating agencies are Moody's, Fitch, AM Best and S&P. When looking for a burial insurance policy, be sure to consider an insurance carrier's financial strength and only choose highly rated companies.
- Medical underwriting - Because their death benefits are usually lower than other types of life insurance, burial insurance policies typically require much less medical underwriting on an insured when a policy is being issued. Medical underwriting is the process by which insurance companies evaluate a potential insured's risk of dying. Someone with poor health or involved in risky activities such as piloting planes or scuba diving is considered a higher risk than someone in great health that doesn't participate in perceived risky activities. Accordingly, someone deemed higher risk to die, either due to health or lifestyle, will usually have higher insurance premiums or possibly even be declined for coverage. Some burial insurance companies have policies that require little or even no medical underwriting, while others go through a full underwriting process. If you have preexisting medical conditions, or a risky lifestyle, it may be better to focus on insurance carriers that have little or no medical underwriting. The policies issued without medical underwriting are referred to as guaranteed issue products. Again, these usually carrier a higher premium due to the additional risk incurred by the insurance carrier.
- How to purchase - There are different ways to purchase burial insurance. For instance, some insurance companies work directly with consumers, while others only offer their products through agents. Some insurance agents will shop around for the best rates with multiple carriers, while others may only represent a single insurance carrier. Some burial insurance products can be purchased directly over the internet without speaking to a person. Be sure to shop around for the best rates and coverage before making a purchase.