![]() ![]() While some opt for more robust policies with large death benefits, a certain type of life insurance - final expense insurance - can be ideal for someone who only needs a small death benefit to cover their final expenses when they pass.Ĭlick here to compare life insurance plans for free at Policygenius.įinal expense insurance is life insurance that’s designed to cover the costs of your final disposition as well as any funeral or celebratory services that take place. NFDA figures show that even the cost of a funeral with cremation worked out to $6,971 as of last count.īecause the bill for a person’s final expenses is unavoidable, many individuals choose to have a life insurance policy. However, that figure doesn’t include the cost of a vault, opening or closing of the ground or the cost of a headstone, which can easily tack thousands more onto your bill.Īnd, if you hoped to escape these costs by opting for a cremation, that may not save you much. Statistics from the National Funeral Directors Association (NFDA) show that families paid an average of $7,848 for a funeral with burial in 2021. While death is most certainly guaranteed for all of us, the cost of dying isn’t necessarily cheap. We may receive a commission through Policygenius if you apply and are approved for a policy, but our reporting is always independent and objective. (2022).Your CNN account Log in to your CNN accountĬNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. What is Burial or Funeral Insurance & How Does it Work? Retrieved from What is Burial Insurance? Retrieved from How Much Does a Funeral Cost? Retrieved from If you can afford your premiums - and they provide you with peace of mind - you could benefit from burial insurance. If you’re a 60-year-old woman, your premiums could be as low as $42.70 for the same amount of coverage. If you cannot afford the premiums, burial insurance wouldn’t be worth it for you. If you’ve determined that a small death benefit is your main goal, you should still consider premium costs based on your age.įor example, if you’re an 80-year-old man, your premiums will likely be over $100 a month for a guaranteed issue burial insurance policy. The payment for burial expenses alleviates a financial burden and a potentially difficult decision for loved ones during a time of bereavement.” Patricia Born, Ph.D., Midyette Eminent Scholar in Risk Management and Insurance, told RetireGuide. “Burial insurance can be extremely valuable for both financial and emotional reasons. If your goal is a higher death benefit to cover many expenses, a term policy would suit your needs better. *Quotes are from Mutual of Omaha for a healthy 50-year-old woman. If you think your loved ones may not honor your burial wishes, this could be a good option for you.Īn article from Office of the Insurance Commissioner states that costs for end-of-life services are set at the time you purchase the policy, meaning, your funeral cost will not rise with inflation. Your death benefit will go to your funeral service provider, not your beneficiary. With pre-need burial insurance, you can select the funeral services you want while you’re still alive. According to Progressive, there is a waiting period before the full death benefit is provided, typically 24 to 36 months. Since the insurer is taking a higher risk by potentially providing coverage for someone critically ill, the premiums are typically more expensive. Guaranteed issue doesn’t require a medical exam or health questions. ![]() There is no waiting period for simplified issue policies. Your premium could increase - or you could be declined coverage - based on your responses. Simplified issue policies don’t require a medical exam, but you’ll likely be asked several health questions. ![]()
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