|
Inside this Article
What
Is “Burial Insurance”?
|
Sponsored
Links
|
“Burial
insurance” usually refers to a whole life insurance
policy with a death benefit of from $5,000 to $25,000.
As its
nickname implies, people buy this type of policy to provide money
for funeral and burial costs for themselves and/or family members.
|
It is possible to buy a policy after answering a few
health-related questions on the application and with no medical
exam.
Premiums are payable weekly or monthly. The premium is usually
collected at the policy owner's home or workplace, and the premium
is usually a small round number.
Such as $2 or $3 per week; the
death benefit is whatever that premium will buy given the insured’s
current age. For example, a $3 per week premium might buy a $6,000 death
benefit for a 36-year-old man or an $18,000 death benefit for a
9-year-old boy.
Burial policies may be designed to cover one person or everyone in a
family.
Under some state laws, funeral homes may be licensed to sell burial
insurance, but it is mainly sold through brokers and agents of
insurance companies licensed to sell life insurance.
An approach that is similar to burial life insurance (and
sometimes called burial or “pre-need” insurance) is pre-payment of
your funeral arrangements. Under this program, you may select the
funeral home, type of service, casket (or cremation), flowers,
headstone, burial plot, the cost of digging and filling the grave, and
other items, and lock in the prices for them by paying in advance.
Sponsored
Links
|
