Millions of people prefer life insurance to cover their funeral expenses.
According to the Life Insurance Barometer Report 2020, 84 per cent of the policyholders bring in expenses to buy life insurance.
Burial insurance is a mode of life insurance plan designed especially for final expenses. It can also be coined as final expense insurance or funeral insurance.
Funeral costs are enormous, and this is one of the primary reasons why the older section of the population is going for life insurance.
To resolve this issue and make things simpler, burial insurance has been introduced. It brings you better options.
This is the only option for families with no savings to complete the absolute rights and bring out the final expenses.
Read along to know more about how burial insurance works, helps the deceased’s family, and covers every cost-effectively.
Who Needs Burial Insurance?
If you think you need to contact the best insurers for your funeral coverage, try to get to funeral directors in Sydney. They are the best at offering services to your beneficiary once you pass.
The death benefit payout money can always be passed on to other workers after covering the funeral costs.
However, one needs to understand who requires this burial insurance. Here is a group of people who need it.
- Ones who have limited savings, and that is not enough to cover the funeral costs.
- Ones with no life insurance coverage.
- People with outstanding debts can get burial insurance.
- Ones who don’t have a well-off family or financially active friends to cover their funeral costs and burial business.
- Those who don’t wish to burden their family with funeral costs after they pass away.
- Those who wish to pay off their debts and medical bills.
- Ones who wish to have a distinct insurance policy for final expenses.
- Ones who don’t want to spend their savings on funeral expenses.
- Ones who want to leave behind a charitable disposition to a person important to them.
Types of Burial Business for you
Either you can go for a non-medical burial plan that involves a brief medical checkup or prescription records, or you can go for an insurance plan with no health questions.
Such a policy with no health questions guarantees life insurance acceptance. However, non-medical burial insurance policies are of three different types, including:
Level Benefit: If you have no answer to the health questions, a level benefit plan is the best for you. They keep you covered immediately, and with your first payment, approval is given to the beneficiary.
After the approval, the entire insurance amount will be given to the beneficiary when you pass away. There is no waiting period.
Graded Benefit: It can be considered a medium-term option for the insured. The insurer visits your health profile, and it might get riskier.
You can qualify for this option if you answer the health questions. The charges are around 15 to 40 per cent more than your policy. They provide partial protection to the insured for the first two years of the policy.
Modified: A modified plan is perfect for high-risk applicants. The insurance company charges around 15 to 50 per cent more on specific premiums. The waiting period for such policies is two-year again.
Final Verdict
Burial insurance is not so popular yet, but it is one of the significant saviours for people.
Especially for the ones who leave behind their family with fewer savings, burial insurance covers all of their funeral costs and eliminates the stress on the family.
However, burial insurance needs a beneficiary to take charge of everything. There are other essential things you need to know about the coverage.
Luciana joined our team as a mum blogger in 2020. A dedicated mum to a lively daughter and a dog, Luna, Luciana brings authenticity and passion to every post. Her expertise in parenting and lifestyle topics offers practical, relatable advice for real-life situations.