Whether it is called final expense insurance, senior life insurance, or burial insurance, they have the same purpose: to ensure that individuals have settled their financial loose ends before they depart this life. Burial insurance is a small permanent life insurance policy for individuals that belong to the middle and late adulthood age groups.
Reliable insurance policies, such as mutual of Omaha burial insurance, is a whole life policy that adults should not ignore because of its benefits and advantages. Unfortunately, despite its significance, there are still some individuals who are not aware of burial insurance. To address this, here are answers to some of the frequently asked questions regarding burial insurance.
What is Burial Insurance?
According to an article by Investopedia, burial insurance is a type of life insurance used by individuals to pay for their funeral services and other merchandise costs after death. This type of life insurance has been designed to cover the majority of funeral service costs. In this way, an individual does not become a financial burden to their family when they depart.
Why Do I Need Burial Insurance?
Recent reports have shown that the cost of burial or funeral services can reach upwards of $9,000-$10,000. This fact means individuals that don’t have any form of life insurance may not be in a position to afford a proper funeral. This reason is why burial insurance is of the utmost importance because a person’s funeral costs will be taken care of by getting it.
How Much Does Burial Insurance Cost?
Burial insurance like mutual of Omaha burial insurance is quite affordable as it is a subset of regular life insurance plans. However, you will pay the monthly premiums depending on the type of burial service you anticipate to have.
If you plan on having a small and straightforward funeral service, your monthly payment will be relatively low. Inversely, if you would want to have a large or grand funeral service, then you would need to pay a more enormous amount every month.
Does Burial Insurance Require a Medical Exam?
Burial insurance has been designed for a more straightforward qualifying process; this type of insurance does not require a medical examination. Burial insurance can either be bought online or by telephone. Because of this, burial insurance has become a great alternative for individuals who got denied for regular life insurance plans.
Can the Insurance Proceeds Be Used for Other Expenses Aside from Burial Cost?
The main use of burial insurance is to pay for funeral related services and products. However, the beneficiaries ultimately decide to use the insurance proceeds any way they see fit. This means if you have unsettled loans, debts, bills, or other expenses, your beneficiary can pay for it on your behalf using the burial insurance benefits.
What are Stepped Premiums?
Stepped premiums are a type of burial insurance payment calculated by identifying factors, such as sex, age, and amount of death benefits when the insurance policy is renewed. It is paid yearly. And increases as an individual grows older.
Stepped premiums are the best options for individuals who would want to get insurance at an early age. This is because stepped premiums cost less for younger individuals.
What are Capped Premiums?
Capped premiums are burial insurance payments that have a set monetary limit or age. This means if a person reaches the agreed limit, that person no longer has to pay for the monthly premiums but still keeps the insurance coverage.
For instance, if your burial insurance is capped at $7,000, you no longer have to pay for additional premiums once you have paid for this amount.
What are Guaranteed Premiums?
Guaranteed premiums are a type of burial insurance payment that guarantees that your beneficiaries will receive insurance proceeds after your death. Your beneficiaries’ benefits can either be the original insured amount of your policy or the exact amount of the monthly premiums you have paid for.
What are Leveled Premiums?
Much like regular premium payments, the cost of level premiums is calculated based on age, sex, and the number of death benefits. However, it differs from stepped premiums because the rates don’t increase for leveled premiums regardless of health or age changes.
Burial insurance is one of the best insurance products in the market today, and it is paramount that you get one for yourself. However, make sure that you only get one from a reputable and reliable insurance company. In this way, you are sure that your beneficiaries will get the insurance proceeds when the time comes.