Losing a loved one is a particularly traumatic event. On top of the emotional stress, there are significant expenses that come at the end of life. Burial insurance (sometimes called funeral insurance or final expense insurance) can help pay for the cost of the funeral and burial or cremation services. This may include a burial plot, a burial vault, a casket, flowers, a funeral home service, a headstone, obituary notices, transportation, and an urn service. But is burial insurance worth it? Let’s find out.
Factors to Consider
Whether or not burial insurance is worth it depends on a number of factors. These include your health, the amount of coverage you need, and your reasons for wanting this type of life insurance policy. If you need a policy that will provide a substantial death benefit to cover a mortgage or provide income replacement when you pass away, this may not be the best choice.
Simplicity and Guaranteed Coverage
However, if you want a simple policy that offers guaranteed coverage, doesn’t require a medical exam, and can help your loved ones take care of your final expenses, burial insurance could be the right choice for you. Such a policy can cover the basic costs of your funeral and burial, easing the financial burden on the people you love.
Burial Insurance vs. Life Insurance
It’s important to note that burial insurance is not a case of life insurance vs. burial insurance. In fact, burial insurance is a type of life insurance that can provide the financial resources to cover your final expenses. It can also cover outstanding debts that you leave behind, such as credit card debt and medical bills.
The Cost of Funeral and Burial
The average cost of a funeral and burial in the United States is $7,848. If you include a vault, required by many cemeteries, that number rises to $9,420. The average cost of a funeral and cremation is a little lower, at $6,971. Purchasing a burial insurance policy, or final expense insurance, is a helpful way to ease the financial burden on your loved ones.
Consider Your Situation
So, when should you consider adding a burial insurance policy?
If You Are Single
Purchasing a burial insurance policy (or a small life insurance policy designed to cover final expenses) can help prevent the passing of any substantial debt to surviving family members. In addition, a more robust whole or term life insurance policy can help you provide financial support to aging parents or siblings.
If You Have a Young Family
Burial insurance covers funeral and burial expenses, while whole life insurance can help give your family members the resources they need to maintain their lifestyle. Life insurance can replace some or all of your income, pay off debts, help pay college tuition, fund your spouse’s retirement, and cover final expenses.
FAQs
Q: Do I need burial insurance if I have life insurance?
A: It’s not a case of life insurance vs. burial insurance. Burial insurance is a type of life insurance that can provide the financial resources to cover your final expenses, including outstanding debts.
Q: Why should I consider a burial insurance policy?
A: Burial insurance can help pay for the cost of the funeral and burial or cremation services, easing the financial burden on your loved ones.
Conclusion
Burial insurance can be a valuable tool to ensure that your final expenses are taken care of and that your loved ones are not burdened with significant debt. Consider your situation, evaluate the available options, and choose the policy that best suits your needs. Remember, it’s important to have both final expense insurance and a more comprehensive life insurance policy to provide comprehensive coverage.
