Pros and Cons of Burial Insurance Programs

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When it comes to planning for the future, it’s important to consider all aspects of your life, including what will happen when you’re no longer here. Funeral expenses can be a significant financial burden on your loved ones, which is why many people choose to invest in a burial insurance policy. But what exactly is burial insurance and what are the pros and cons? In this post, we’ll take a closer look at this type of insurance and help you determine if it’s right for you.

The Good:

  • No medical exams: One of the biggest advantages of burial insurance is that you don’t need to take a medical exam to be eligible. Approval is typically fast and can be done within 10-15 minutes.
  • All health issues can be insured: No matter what your health condition may be, you can still get coverage with a burial insurance policy.
  • Permanent whole life coverage: With a burial insurance policy, you’ll receive permanent whole life coverage with a fixed price.
  • New coverage available up to age 90: You can still get coverage at an advanced age, with some insurance companies offering policies up to age 90.
  • Fast claim payouts: When it’s time to file a claim, the payout is typically fast and efficient.
  • Tax-free cash payment: The death benefit from a burial insurance policy is tax-free, which means that your loved ones can use the money for anything they need.

Recommended Read: Pros And Cons Of Purchasing Burial Insurance When You Have Pre-Existing Conditions

The Bad:

  • More expensive than other life insurance options: Burial insurance policies are generally more expensive than other life insurance policies, especially if you have a pre-existing health condition.
  • Low coverage maximums: With burial insurance policies, you’ll typically only be able to get coverage of up to $50,000 or less.
  • Premiums could exceed death benefit: Over time, your premiums could end up being more than the death benefit.
  • Does not lock in funeral costs: The death benefit from a burial insurance policy will not lock in funeral costs at the current prices.
  • Waiting period: Some insurance companies include a 2-year waiting period, which means that your loved ones will not be able to access the death benefit during that time.
  • May not be enough to cover all expenses: The death benefit from a burial insurance policy may not be enough to cover all of your funeral expenses, especially if you have a more elaborate funeral in mind.

In conclusion, burial insurance can be a good option for individuals who want to ensure that their loved ones are not burdened with the cost of their funeral expenses after they pass away. However, it’s important to consider the pros and cons and determine if it’s the right choice for you. If you have any questions or concerns, be sure to speak with a licensed insurance professional for further guidance.