No one wants to think about the end of their life. However, the last thing we want is to burden our loved ones with financial woes when we do pass. The typical household in 2020 carries an average debt of $137,063, which can be passed onto our family members.
To ensure that your family won’t have anything to worry about in the future, you need to get end of life insurance. However, when you begin your research, you will find that there is life insurance and burial insurance. Those are two completely different policies, so it is important to understand the differences between them.
Life Insurance: A Long-Term Measure
Life Insurance is considered a long-term financial security measure. The primary purpose of life insurance is to help our loved ones cover expenses should we pass away. You need to ensure there is enough money to settle any debts and to provide for your family’s needs. This is especially important for younger families. The key elements to life insurance, which has several types, include:
- Payment of a lump sum or monthly compensation
- Policy amount that can be in the millions.
- Medical exam
- Family history and occupation are often a factor.
- Depending on the type of insurance, payout may be delayed or meted out.
- Depending on the type of policy, it can expire.
- Does not accumulate cash value
One of the primary reasons to purchase a life insurance policy is that it replaces your income when you pass away. But even if you already have a policy, it is a good idea to supplement it with burial Insurance.
The Benefits Of Burial Insurance
Burial insurance is specifically designed for your loved ones to cover your funeral expenses. While it is a type of life insurance, the benefit amounts are smaller. There are several advantages to getting burial insurance if you have no life insurance or want to supplement your current policy. These include:
- Policies are usually never more than $25,000.
- A lump sum is paid almost immediately upon your death.
- In most cases, it does not require a medical examination.
- The coverage is issued based on the health questions on the application.
- The policy does not expire as long as you pay the premiums.
- It accumulates cash value.
In today, the average funeral runs between $7,000 and $12,000 for basic services. That cost does not include the cemetery, gravestone markers, or items like flowers and limousines. Even if you choose to be cremated, it is between $6,000 and $7,000. A burial insurance policy will eliminate the need for your loved ones to pay out of pocket for those while waiting for your life insurance policy to come through.
When it comes to buying burial insurance in , Total Insurance Solutions is the team you want to have on your side. Since we are insurance brokers, we do not work for the insurance company but for you. We will find you the best insurance for your needs by looking at multiple companies to get you the best price.
The last thing you want to do is to leave your grieving family the added stress of scrambling for money to pay for your final expenses. To learn more, visit https://burialinsurancenetwork.com and give us a call to see how we can give you peace of mind.