Most people have a life insurance policy that they are dependent on should anything go wrong. The problem is that these people depend on life insurance policies to cover their funeral costs as well. While your life insurance policy can cover your funeral costs, it takes some time for the claim to be processed in theory. In some cases, the proceeds can take up to a few weeks before they reach your beneficiaries.
According to expert insurance agents like Gary Cubeta from Insurance for final expenses, this is why funeral insurance policies exist. They are a safeguard to ensure that your funeral is done without any financial complications at the time of your demise. Burial insurance AARP is one such option where premiums are paid to cover the costs of your final expenses, including doctor fees, minister fees, etc.
But don’t jump at any burial insurance that comes your way. Just like you would do with any insurance, there is due diligence to be done. Let’s go through 5 things you should check before you zero in on a particular insurance plan.
Cost Is Proportional To Risk
You might come across some insurance companies that specifically offer burial insurance to older people. It would help if you could avoid these providers as they operate on the primary principle of burial insurance: the higher the risk, the more the premium. So if you approach any of these companies, you should be ready to pay higher premiums than other options. Look for companies that offer general burial insurance instead of going for specific ones targeted at high-risk people.
Calculate Your Final Expenses
The average cost of a funeral can be anywhere between $5000-$15000. This number might surprise you, but when you look at costs like memorial services, caskets, catering, transport, etc., these costs add up. This is without factoring in other expenses like coroner fees and doctor fees. Of course, people can always find ways to make this slightly cheaper. By looking for Batesville caskets for sale, people could find more affordable caskets to try and bring these expenses down, whilst still providing your loved one with a lovely casket. Take a good look at the number of charges you will likely incur and look for insurance companies to provide you the same. A reliable funeral insurance provider will offer to cover these costs without you asking.
Insurance Types
There are three types of burial insurance:
- Simplified Issue: Under this policy, you may need to undergo a medical check-up. In some cases, smokers and high-risk may not qualify.
- Guaranteed Issue: You don’t require any medical check-up under this policy, but the premiums are higher.
- Pre-Need: You pick a funeral provider, and the insurance coverage will go directly to them, not to your beneficiaries.
When planning for financial protection, it’s also useful to consider other types of insurance that cater to different needs. Let’s say you’ve just heard of workers’ insurance in a conversation and are now wondering, “what is a workmans comp?” due to its potential relevance with your business. For starters, it provides essential coverage for employees who are injured or become ill due to work-related issues, covering medical expenses and lost wages. While burial insurance addresses final expenses, workers’ compensation ensures that employees have financial support in the event of work-related injuries, highlighting the importance of comprehensive insurance planning.
That said, you must evaluate your requirements carefully and decide which option would be the best for you.
Payout Time
The primary objective of funeral insurance is to provide your loved ones the finances they require to carry out your funeral correctly. If the policy payout takes time, then your family will have to bear the cost because a funeral can’t be postponed. Most reliable insurance providers will have payout times less than 48 hours. If your beneficiary is planning on covering the expense through your life insurance, check its description and terms to see the pay-out time.
Compare Plans
There will be a large number of plans available in the market for you to choose from. If you go with prominent market players like Burial Insurance AARP, then you would be looking at lower premiums with hassle-free payouts but don’t stall yourself at one option. Consider a few and compare the pros and cons before you finalize.
