How to Choose Burial Insurance Coverage

Many of us worry about passing the cost of final expenses to our spouse or other loved ones when we die. The National Funeral Directors Association reported the median price of a funeral is $7,360.

Even more problematic, statistics show costs are trending up. Between 2004 and 2014, the median cost of an adult funeral rose nearly 29 percent, which sounds reasonable when compared to the 87 percent surge from 1980 to 1989. Topics related to final expenses represent difficult areas to address with family, even with adult children. But engaging them gives you a head start on managing expectations before they become an issue. Communication is key.

Why Burial Insurance

Burial insurance is a simple and specific form of insurance coverage. Benefits are available to use for funeral expenses and other bills left behind when a person dies.

For people with high-risk health problems, or are older and otherwise would have difficulty with term life insurance, burial insurance is a solid option. With burial insurance, applicants cannot be turned down. Most burial insurance does not require medical exams and the policy stays active as long as premiums (which never increase) get paid.

Finding the right insurance is simpler when you consider these factors:

  • Competitive rates
  • The number of policy options
  • Strength of benefits
  • Customer reviews

Rates might differ from state to state, based in part on local rules and regulations. California, for example, has restrictive burial laws. Many states require the participation of a funeral director in the burial process no matter what options are chosen. And be wary of prepaid burial plans, which differ from insurance in a lack of flexibility and privilege. With prepaid burial plans, you lose assumed liberty to direct the final arrangements as you see fit.

As with any major expense, it makes sense to plan ahead and prepare a budget based on what can be afforded. Burial insurance is one way to take control of end-of-life planning while making things even a little easier on loved ones during a difficult time.

 

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