What Are Funeral Policies?

About Funeral Insurance Policies

By Insurance Articles

What Is Funeral Insurance?

Sometimes this product is called funeral life insurance, a burial policy, final expense, or even senior life insurance. Whatever it is called, it refers to the same basic thing. That product is simple. A funeral policy is a type of whole life insurance that has been designed to cover end-of-life expenses. It has also been designed to be easy for older people to apply for and to get accepted for.

The face values are usually quite modest when compared to other types of life insurance. Most of the time, they range from $2,500 to $25,000. Since the average US funeral costs about $8,000, and a family may have some other expenses, this amount makes sense.

How Much Money Will You Need When A Loved One Dies?

Each family will have different needs. Think about the type of things that crop up when a loved one passes away. There is the funeral service and burial. Some family members may have to take time off of their jobs. Others may have to travel. Host families may need to house and feed mourners. It is always best to get through this stressful time without having to worry about money.

How Much Does Funeral Insurance Cost?

Policies will vary in cost. Of course, the age and general health of the insured person matters. Beyond that, the zip code and the insurance company will also affect rates. There are also a couple of different types of burial policies, so it is important to make sure you understand what you are purchasing.

• Shop around for the best policy and premiums.
• Try to balance the premium with your budget.
• Make sure you understand the difference between simplified and guaranteed issue policies. Guaranteed issue policies will skip health underwriting, but may not pay immediate death benefits. Simplified issue plans will have some health questions, but should pay an immediate death benefit with no waiting period. For example, with some guaranteed issue policies you may need to have the policy issued for several months before the insured person dies in order to collect the full benefit. With a simplified issue policy, there should be no waiting period.

Who Pays For Funeral Insurance?

Sometimes an older person, from 50 – 85, will purchase a policy for themselves. In other cases, family members will pay for the premiums. The policy owner and the insured person do not have to be the same.

In either case, there will be a person (or people) named as the beneficiary. That will be the person who will probably be responsible for making arrangements. The cash goes to that beneficiary. They can use it in any way they need to. However, a lot of funeral homes will accept an assignment of the proceeds in order the pay for expenses there.

That does not mean that all of the money has to go to the funeral home.The proceeds can be spent in any way that the beneficiary sees fit.

Funeral Insurance Vs. Pre-Need Plans

There are also prepayment plans with funeral homes. These are different than funeral policies. A funeral policy is insurance with a cash benefit. A pre-need plan will pay for specific services from a company.

Compare Funeral Insurance Policies

We make it easy to understand, compare, and quote buiral insurance for seniors.
We would like to help you shop for low cost funeral insurance.

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4. Average Funeral Cost in the US for 2008
5. Burial Policies For Seniors Final Expense Planning