- 1 Do You Know How Much A Funeral Costs?
- 2 Do You Have That Much Amount In Your Savings?
- 3 How Much Does A Burial Insurance Cost?
- 4 Some Other Ways To Pay For A Funeral
- 5 Conclusion
If there’s one thing we are certain of in life, it is death.
So, if you ever give a thought about what will happen after we die?
I have an answer for you.
Your loved ones mourn their loss and often struggle to arrange the money needed to organize a funeral for your departed soul.
Now, the problem of arranging for the final expenses by your loved one will go away, if you simply get burial insurance.
With several insurance options available out there, it is difficult to determine whether or not you need burial insurance at all.
After all, who knows when our time will come? am I right?
So, in case you don’t already have an extended life insurance plan, we have listed 5 ways to help you decide if it is worth investing in burial insurance?
Do You Know How Much A Funeral Costs?
According to the National Funeral Directors Association, a burial may cost you $7,640 on average.
And guess what?
This does not even include expenses for a vault, which is another $9,135.
Wow, dying really is expensive these days!
If you think the cost ends there, you’re wrong.
If you want a cremation casket, you’ll have to pay $6,645 on average.
Don’t want a casket or an urn?
Fine, then it’ll be just $5,150.
All of these costs do not cover for flowers, obituary, monument, or a marker.
Do You Have That Much Amount In Your Savings?
If the answer to this question is yes, then you can stop reading now.
But again, what if you get into a financial crisis in the future?
I mean, nobody can tell when they will die.
So, it is always wise to have a separate safety net?
And if you don’t have that kind of cash lying in your bank account, I’d suggest you get burial insurance.
You can also get a simplified issue life insurance by answering just a few yes/no questions or get a guaranteed issue life insurance, that anybody can apply for.
This policy covers the entire cost in case of an accidental death
However, if someone dies of natural causes before the term of coverage ends, the insurance company refunds only the premiums paid until the time of their death.
Knowing The Difference Between Life Insurance And Burial Insurance
Life insurance comes with many options and burial insurance is one of them.
Let me clarify some of the insurance types-
Term life insurance –
This is a great plan that covers your mortgage or your child’s college tuition if something happens to you.
You can choose the amount of your coverage as well as the length of the term (ranging between 5-30 years).
Whole life insurance –
If you’re looking for a lifelong coverage, Whole life insurance policy is your best bet.
Although the premiums are a bit higher compared to the term life insurance, your beneficiaries will get the death benefit regardless of when you die.
Oh, and the value of cash also increases at a predictable rate.
Universal Insurance –
This is somewhat similar to whole life insurance, but there is no guarantee that the cash value will increase with this plan.
Then again, it is less expensive that comes with an option for lifelong coverage.
In simple words, if you cannot afford to pay for expensive life insurance premiums, get burial insurance, so your family won’t be burdened with your final expense.
How Much Does A Burial Insurance Cost?
Unlike life insurance, the premiums for a burial insurance policy are comparatively lower and need less medical information.
It may cost you $50 per month on average, depending on the coverage you choose.
Premium rates usually depend on your age, gender, and health.
It is more cost-effective to get burial insurance since it has a lower face value than other life insurance.
This is designed only to pay for your final costs and provide for the kind of goodbye you hoped for.
Some Other Ways To Pay For A Funeral
If you still don’t want to get burial insurance, you have some other options like a Payable on death (POD) account, funeral trusts, trusts, or savings account.
But let’s face it, the money will not magically appear there, and you will have to deposit a chunk of money every month to these accounts or trusts.
So, why not just get burial insurance?
This way, you’ll have money saved for your final cost and if you outlive the term of your coverage, you will get your money back without having to pay taxes on the premiums refunded to you.
It’s a win-win!
Funerals are not just about getting a casket or an urn.
It’s the day your family and friends will get to see you for the very last time.
They will remember all the memories they shared with you and relive those experiences at that moment.
So, if you want to bid farewell in style, it’s important to have the financial backup to be able to pay for flower arrangements, music, food, and so many more hidden costs that you don’t even know of yet.
Since it is the final expense you’ll ever have to bear, make it count.
Get burial insurance, and if God of death arrives, at least you know you will get a proper funeral for a peaceful afterlife.