Buying a funeral insurance policy is the right step if you are trying to make the burden of your loved ones a little lesser. While buying the policy is challenging, selecting the right one doesn’t need to be. It would be best to have the same foresight as you did when you first considered purchasing a funeral insurance policy.
Burial insurance is a format of life insurance policy that takes care of your “final expenses” like your funeral and burial or any pending medical bills. According to expert insurance agents like Gary Cubeta from Insurance for final expenses, policies such as the Gerber life final expense insurance are some examples of well-thought-out plans in this category. Let’s take a look at some essential ways to help you find the right one.
Calculate Final Expenses
Your first step would be to figure out how much money you’ll need to cover your end of life expenses. The first cost you would think of is your funeral, which is mostly the highest covered cost, but there are other expenses. Costs like living expenses, remaining medical bills, credit card bills, and legal fees are a few examples of final expenses you might want to consider.
Spending on the number of things you want to be covered, you might have to pick a policy that provides you with extended coverage. Some websites will have an online calculator that can give you a rough estimate of the final expenses you may face.
Type of Insurance Policy
There are several options available that offer coverage for funeral costs. Some of them are:
- Term Life Insurance: Term policies generally cost less than other insurance types but keep in mind that these policies expire after a set period. If you want to extend your coverage, then you’ll have to buy a new policy at a more expensive rate. It may become somewhat difficult for a person to qualify as they age and their health changes.
- Whole Life Insurance:Whole life policies are active from the day you pick them until you die. These policies will require a higher payment, so it is advised to get these policies relatively younger and have fewer health issues. This is because your premium rates will stay the same once you have signed up for the policy, regardless of any illness you may get down the line.
- Funeral Insurance: This type of insurance is active until you die, similar to whole life insurance. The difference lies in the fact that burial insurance is meant only to cover your funeral/burial costs, so the cash benefit you will receive will be in smaller amounts than whole life insurance. Policies like the Gerber life final expense insurance does not require a medical check-up, but a few questions about your health may be asked.
The median costs of funerals, on average, are continually increasing per year. Coffins, tombstones, minister fees, and other ancillary expenses tend to stack up, leaving your loved ones with a massive bill. If you already have term life insurance, then you needn’t worry about funeral costs as those will be covered.