Everything You Need to Know About Burial Insurance

By James O'Neal

1.5 million people are laid to rest in the United States every year. The costs surrounding their burials make up a funeral industry that’s responsible for roughly 20 billion dollars worth of spending annually.

It’s not something anybody wants to talk about but when you die, your loved ones will need to deal with the costs surrounding your burial. That can represent a massive financial hardship.

Death is inevitable for all of us and so are the costs involved with it. To protect your loved ones when you’re laid to rest, we recommend considering burial insurance.

This post’s aim is to educate you on insurance for burials. It will help you determine whether or not you or a family member can benefit from getting a policy.

What Is Burial Insurance?

Burial insurance is a term used by providers that broadly means insurance for expenses associated with a person’s burial. Other common terms used for burial insurance include prepaid funeral plans or preneed insurance.

It’s important to note that some providers may use the term burial insurance to describe a final expense plan. A final expense plan is not the same as a plan that covers funeral expenses.

Final expense plans typically cover the outstanding debts of a loved one upon their passing. Insurance for burials will cover costs imposed on you by a funeral home.

Be sure to read your policy carefully before committing to it to ensure you’re getting the coverage you’re expecting.

What Are the Benefits of Getting a Quality Burial Insurance Policy

As with all insurance plans, insurance for burials prevent you from needing to spend money on unplanned expenses. The average cost of a funeral in the United States can vary widely based on the type of service you have and embellishments desired.

For example, a casket on average will cost roughly $2000.00 and can go as high as $10,000 for caskets made of bronze or copper.

The price of a casket added to other expenses such as service fees, remain transferring, embalming, the ceremony, and more can add up to thousands.

Insurance for burials allows you to mitigate many of those costs.

Burial insurance policies also come in various shapes and sizes to fit the needs and situation of each person looking to get a policy. This flexibility makes them an attainable investment.

Can You Get Burial Insurance with Pre-existing Conditions?

Many people interested in insurance have pre-existing conditions and are concerned as to whether or not they will be eligible for a policy.

In short, many pre-existing conditions do not disqualify you from burial insurance. Pre-existing conditions that can affect your coverage vary from provider to provider. If you have a high-risk condition that is making it difficult for you to get a burial policy, you can still pursue a guaranteed issue life insurance policy.

The process of determining your insurance eligibility is simple. During your sign-up process for insurance coverage, your provider will ask you various health questions.

Be sure to answer all of the questions honestly as providing false information is grounds in which your policy can be terminated.

After submitting your application, most providers will automatically qualify or disqualify you from coverage based on your answers. Again, different providers have different standards. If you’re disqualified from one burial policy it doesn’t mean you can’t access another one.

Find as many reputable policy providers as you’d like and apply for coverage until one agrees to give you the insurance you’re looking for.

Do You Need Both a Burial Insurance and a Life Insurance Plan?

Life insurance can pay out a lump sum to family members when you die. For most though, the purpose of life insurance is to fill a financial void left when they are laid to rest for miscellaneous expenses. This includes unpaid bills, attorney fees, backed taxes and more.

Having your life insurance policy allocated to your funeral expenses will reduce the amount it can help your family adjust financially in other regards. For that reason, it’s advisable to consider having a burial policy in addition to a life insurance policy.

Is Allocating Money in Your Will to Burial Expenses a Substitute for Insurance?

Unfortunately, no. If your death comes as a result of a long bout with an illness, your savings may be adversely affected. Consequently, there may not be enough left to cover burial expenses.

Even if your savings is adequate enough for your burial, your final will probably won’t get read until after you’re laid to rest. This leaves family members with the burden of fronting thousands of dollars. They then need to wait for the lengthy legal process of your will being carried out to conclude.

The best way to ensure that you get the funeral you want without putting a burden on your loved ones is with an insurance policy.

The Bottom Line

Passing away can be a difficult time for loved ones on an emotional level. This can be exacerbated by the pain involved in needing to overcome the financial burden of funeral costs.

To help manage that burden, getting an insurance policy to cover your burial and other funeral expenses is an excellent solution.

O’Neal Insurance Group is an Illinois based independent insurance company. We have been improving the lives of our clients for years!

We provide high quality, affordably priced plans for life insurance, burials and more. Our plans help you and your family get through today’s challenges so you can look forward to a brighter tomorrow.

Read more about our burial and life insurance plans or for more information on the kinds of services we offer, contact us today!