It is a difficult time when a loved one passes. The grieving process can be made even more difficult if the family has to worry about how to cover funeral expenses, or what will happen with their home and car after they are gone. This blog post will discuss some of the benefits of final expense insurance for cremation.
Our team at PinnacleQuote, understands that it is important for families to have peace of mind during this difficult situation, which is why we provide affordable plans designed to meet your needs.
- Does Burial Insurance Cover Cremation?
- What is a Cremation Insurance Policy
- Does Life Insurance Pay For Cremation?
- Best Cremation Insurance Burial Policy
- Cremation And Final Expense
- How To Prepare For Funeral Expenses
- Final Expense Insurance Companies
- Cremation Insurance For Seniors
- Should You Get Cremation Insurance?
Does Burial Insurance Cover Cremation?
I need a life insurance policy for burial expenses, what is it and where do I begin?
First off, funeral and burial insurance policies are put in place to cover your final expenses when you die. It is imperative to have a policy so that your family is not financially crippled in the event of your death.
These burial policy plans are designed specifically to cover the costs for burial and cremation. In addition, many of these policies also have living benefits attached to them. In the event of an illness, you will be able to tap into the policy if you need funds to help you through a difficult financial time.
Burials usually cost around $10,000, which is a hefty bill to leave for your family to pay. Although thinking about your own death is not a pleasant experience, planning your funeral before you die can take a significant weight off of your loved one’s shoulders.
Don’t leave this decision for your family to make. You should between traditional burial or cremation. Also, take the steps necessary to cover these costs yourself. Below, we’ll break down some of your options for life insurance.
What is a Cremation Insurance Policy
Burial insurance plans or a funeral expense policy was created to cover the cost of your funeral. It is a whole life policy with a death benefit usually anywhere from $5,000- $25,000. Depending on the company the death benefit could be higher.
We always recommend double to cover the cost of your entire funeral. When you die, the death benefit goes to the designated beneficiary who can use that money for all your funeral expenses.
Does Life Insurance Pay For Cremation?
What is the difference between life and burial insurance?
Life Insurance ~ protects survivors who depend on the insured person for financial support. Those persons/family members will be financially secure for years to come in your absence.
Burial Insurance ~ is slightly different whereas it is put in place to cover the cost of your funeral expenses when you die. Usually, face value is from $5,000-$25,000. Slightly higher depending on the carrier. Ask your independent agent.
Best Cremation Insurance Burial Policy
Not only is funeral the traditional choice after death, but it is also one of the more expensive options. As mentioned above, you can expect a burial to cost around $10,000.
While this may seem ridiculously high to some, think of the money that goes into a burial. If you’re deemed uninsurable at this age, a guaranteed acceptance life policy may be your only choice.
The casket, for one, usually costs around $2,000, but they can be far more expensive depending on the quality. In addition, the headstone is another item that needs to be accounted for. An average headstone will cost approximately $1,000, with the potential to be significantly more expensive.
Cremation And Final Expense
The next most popular option for final wish planning is cremation. This route is getting to be far more common since burials continue to increase in price.
In fact, people are opting for cremation much more often now than ever before. In fact, consensus says cremation will be as popular as burials. This is the most affordable life insurance for seniors.
Of course, cremation costs vary greatly between states and crematories. Some funeral homes have their own, which is usually far cheaper. On average, the cost of cremation is somewhere between $1,000-$2,000.
You’ll also need to purchase an urn, but these are much less expensive than caskets. The cost of the urns is between $100-$250. For life insurance for over 75 years of age, this may be the most affordable option.
How To Prepare For Funeral Expenses
What is funeral insurance?
As opposed to term life insurance which expires at the end of a term. Be that a 10,15, 20 or 30-year term. A burial policy or funeral insurance is a simplified whole life policy that remains level for your entire life.
You can choose to prepay for your funeral. Some choose to save that money if they need it now and purchase a policy that will pay out to their spouses and dependents (beneficiaries) in the event of their death.
Will Funeral Homes Wait For Life Insurance?
Most of the time, no. BE PREPARED.
Why is it important to have funeral insurance coverage?
- Casket: This will probably be the largest expense of the funeral. Approximately, 2,400.
- Embalming: This service isn’t always required, but it’s necessary if there is going to be a viewing or visitation. The service costs about $700, according to the NFDA.
- Memorial Service: services cost about $2,000. This involves planning, obtaining proper permits and copies of the death certificate, preparing notices, holding the remains and coordinating with the place where you plan to hold the service, according to Funeral Planning 101.
- Grave-site: Funeral Planning 101 indicates that most plots start around $1,000, although it’s certainly possible to find a more affordable one. Many people choose to buy their plots ahead of time to know they’ll be with loved ones.
- Transportation: It costs about $300 to use a hearse to bring the deceased to the funeral home and about $130 for a service car or van, according to the NFDA’s statistics.
- Obituary: Having an obituary written may be free in a small-town newspaper, according to How Much Is It. Therefore, if your family wants you memorialized in a larger publication, though, it may cost up to $600 depending on the day you run the obituary, whether you include a picture and how long the biography is.
- Gravestone: A flat grave marker usually costs less than $1,000, while an upright one may cost up to $10,000. Prices vary based on the material and color you choose. Marble is the most expensive, but there is also granite, sandstone, limestone or concrete to name a few. Elaborate inscriptions can also add to the total, but if the deceased is a military veteran, you may be able to get a grave marker for free.
- Flowers: Funeral flowers can cost between $200 and $1,000 for a complete package, including the bouquet, spray, and boutonnieres.
Which is a Cheaper Funeral in U.S., Cremation or VA Burial?
Cremation or VA Burial? The cost can vary depending on the type of service you choose. Cremation services will be less expensive on our Veterans and their family compared to a traditional funeral.
Final Expense Insurance Companies
There are many affordable ways to cover your final expenses so that your family doesn’t have to. Purchasing a cheap burial policy is the best option for those on a budget, who are mostly concerned with paying for their own final expenses.
Below, we’ll list some of the advantages of a burial insurance policy:
- No Medical Exam Required — Unlike traditional term life and whole life insurance, burial insurance policies do not require a medical exam. In fact, this is great for people in ill health who do not want to take a physical, and for those that are having trouble getting coverage from life insurance companies due to poor health conditions. You’ll have no problems getting accepted for final expense insurance.
- You Don’t Need Full Life Insurance — Many people looking into insurance for their final expenses no longer need full life insurance coverage. This could be because they’ve already paid off all of their debts, their children are now adults, etc. Therefore, affordable burial insurance can save you loads of money because you won’t need to pay for all the other things covered by traditional life insurance.
- Coverage is Quick — Unlike traditional life insurance plans, final expense insurance will begin covering you in a matter of days after you apply, and in some cases even sooner.
Cremation Insurance For Seniors
What Is The Best Cremation Insurance For Senior Citizens?
A few of our favorite and best burial insurance policies are with the below A+Rated carriers. Let’s take a look.
- Mutual of Omaha
- Royal Neighbors of America
- Prosperity Life
Should You Get Cremation Insurance?
In most cases, a burial insurance policy does not offer enough coverage to protect families, but there are many situations where it is the best option.
There are plenty of things to consider before deciding on an insurance policy or end of life insurance. Compare the different burial insurance plans and make an educated decision.
For one, calculate how much debt you have. If you owe a lot of money or have a mortgage, you’ll need more than a burial insurance policy to cover these things.
However, if no one is financially dependent on you, and some debt will be left, then a burial insurance policy is a fine option.
Most importantly, consider your budget. Many people can’t afford more than a burial policy plan. Furthermore, people in poor health may find difficulty with approval for any kind of traditional life insurance policies.
In these cases, burial insurance is an excellent alternative. Although burial insurance has some limitations, it is definitely better than having no insurance at all.
Contact your independent life insurance agent at PinnacleQuote to help guide you in purchasing the best burial insurance.
Whether you choose a Final Expense Life Insurance Policy that covers funeral expenses and then some, a dedicated final expense insurance policy, or funeral pre-payment, you’ll be doing your loved ones a huge favor.
Taking the time to consider and document your end-of-life wishes may be a little uncomfortable now, but it will make all the difference when the time comes.
Final Thoughts on Cremation Insurance
The Idea of life insurance causes many people to hold back on purchasing it.
However, life insurance companies purchasing cheap burial insurance policies easy to obtain. Since the face value of the policy is much smaller than a traditional life insurance policy no exam is required. The direct result of this is a lower, more affordable premium payments.
Therefore, if you feel that you cannot afford traditional life insurance, you will find the affordability and ease of final expense policies helpful. This is a type of life insurance plan you can afford to meet your final expense needs.
It provides peace of mind in regards to funeral expenses being covered. With a traditional insurance policy, your dependents are using that death benefit for every expense: mortgage, college, everyday living, and so on, in addition to funeral costs.
With final expense insurance, you and your beneficiaries know what the money is supposed to be used for, taking much of the stress out of planning your burial.
Why Choose Final Expense Insurance for Cremation?
It ensures that your loved ones are not financially burdened with cremation and funeral costs. These policies are generally affordable and easy to obtain, even for older individuals or those with health issues?
How Does Final Expense Insurance Differ from Traditional Life Insurance?
Final expense insurance typically offers a lower coverage amount specifically intended to cover funeral and cremation costs, and is often easier to qualify for, with simplified underwriting processes.
What Are the Key Features to Look for in Final Expense Insurance for Cremation in 2024?
Look for policies with guaranteed acceptance, no medical exam requirements, fixed premiums, and a death benefit sufficient to cover expected cremation and funeral expenses.
How Much Coverage is Typically Needed for Cremation?
The coverage amount varies depending on location and specific funeral preferences, but generally, policies range from $5,000 to $20,000.
Are Final Expense Insurance Premiums Affordable?
Yes, they are typically more affordable than traditional life insurance policies, especially for smaller coverage amounts.
Can Final Expense Insurance be Purchased for Someone Else, Like a Parent?
Yes, you can purchase a policy for someone else, such as an aging parent, provided you have their consent and insurable interest.
Is a Medical Exam Required for Final Expense Insurance?
Most final expense insurance policies do not require a medical exam, making them accessible to those with pre-existing health conditions.
How Quickly Does Final Expense Insurance Pay Out?
These policies often have a quicker payout process compared to traditional life insurance, which can be crucial for covering immediate expenses like cremation.
Are There Any Tax Implications for Final Expense Insurance?
Generally, the death benefit from a final expense insurance policy is tax-free, but it’s advisable to consult with a tax professional for specific advice.
The only thing worse than not planning for your final expenses is having to plan them. We can help you get the funeral and burial insurance policy that’s right for you, so stop worrying about how your family will manage in the event of a loved one’s death. Get Quote now – it takes just minutes!