What Are Funeral Policies?

admin — Thu, 05 Aug 2010 16:16:16 +0000

About Funeral Insurance Policies

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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Planning For Final Expenses with Insurance

admin — Tue, 06 Apr 2010 16:40:14 +0000

What are Final Expenses?

Final expense is a term that we use to refer to costs that come up when a loved one passes away. Of course, this is a stressful time for all of us. But these costs can really add to our normal issues when we have to deal with the loss of a loved one. Some examples of these costs are funerals, burial plots, travel, transportation, hotels, and settling debts.

These costs are not trivial either. An average US funeral can cost $8,000 or more. That is only the burial costs, and does not include other expenses like travel, housing, lost work time, and settling any debts our loved one may have left behind.

About Final Expense Insurance

That is why final expense policies are being marketed by many top insurers these days. It is very common to see ads for them on tv, the internet, or in magazines. These are simply whole life insurance policies with fairly low death benefits ($2,500 – $25,000) that were designed to be easy for older people to apply for and get accepted for. They usually are marketed to people from about age 50 to age 80 (sometimes age 85). So the time to consider these is typically in middle age or retirement years.

Do not just buy the first policy you happen to find either. As with any insurance, not all policies or companies are exactly the same. By finding the right company and type of life insurance policy for you, you can save hundreds of dollars in premiums. Look here for Over 50 Life Insurance Quotes.

If you are looking for life insurance for older people, make sure you know the difference between term and whole life. Also pay attention to the difference between simplified vs guaranteed issue policies.

If you would like to learn more about whole life, consider reading – Define Whole Life Insurance for more information.

Term vs Whole » final expense

What Are Funeral Policies?

Planning For Final Expenses with Insurance

What are Final Expenses?