Defining Burial Insurance

The cost of a funeral can place a heavy, often unexpected financial burden on the deceased person's loved ones. The financial impact can be minimized either by setting aside sufficient funds to cover the cost, or by purchasing burial insurance. As funeral expenses have continued to rise sharply over the past few decades, burial insurance has become an increasingly popular Insurance product.

Identification

The term "burial insurance" refers to a life insurance policy that is specifically purchased to cover the expected and unexpected expenses of a loved one's or one's own funeral and burial. It is also called burial life insurance, funeral insurance or final expenses insurance. This coverage may be purchased for an individual or for a whole family.

Benefits

This policy has death benefits in amounts that include $3,000, $5,000, $7,000, $10,000, $25,000 up to $50,000. The benefits may be applied towards professional services, such as those of a funeral director and staff for embalming or cremation, hearse transportation services for the deceased to the funeral home, burial space merchandise, such as a casket, burial plot or tombstone, and other burial-related expenses.

Application

Unlike most other types of whole life insurance policy, no medical exam is required when applying for a burial insurance policy. You can purchase a policy from a licensed agent simply by filling out an application and making a payment. The application typically requests personal information and includes health-related questions. While the policy can be purchased for any individual six months to 85 years of age, it is recommended for individuals who are 45 to 85 years of age.

Premiums

The insurance premiums charged vary widely based on age: the older you are, the higher the premium you will be charged. Premiums can be paid weekly, monthly or in full. A burial policy provides lifelong coverage so long you make timely premium payments. Once the policy is issued, the premiums never change, benefits do not decrease and the policy cannot be canceled because of your age.

Types

There are three different types or grades burial insurance policies: full coverage, graded death benefit and guaranteed issue policies. A full coverage policy provides immediate, 100 percent coverage from the day that the policy is issued, but you will need to be in excellent health to qualify. A graded death benefit application includes a much simpler medical questionnaire than for a full policy, making it easier to qualify for. As its name suggests, a guaranteed issue burial insurance policy guarantees that anyone is eligible to purchase this policy, no questions asked.

Resources

• Quotes for burial insurance
• More quotes for burial insurance