Burial Insurance Explained
Burial insurance,
also known as final expense or simplified life insurance is
essentially a whole life insurance product with a simple
application process and small face value. Typical face values
range from from $5,000 to $25,000 although policies can often
be written outside of that range. This type of insurance is
designed to be conveniently purchased without the requirement
of a medical exam or a complex questionnaire. Applications can
be completed over the phone, only a few health questions are
asked and no home visit is ever required.
This type of
policy is ideal where the primary concern is the payment of
final expenses such as:
- Medical
Bills
- Funeral
Expenses
- Outstanding
Debts
- Administrative
Expenses
Aside from the
simple application process this type of insurance
features:
- An
accumulating cash value that is available for emergency
expenses.
- A death
benefit that never decreases.
- Premiums that
never increase.
- Policy cannot
be canceled regardless of age or health as long as premiums
are paid.
- Accelerated
death benefit: Receive up to 50% of the death benefit early
if diagnosed with a terminal illness.
Types
of Final Expense Insurance
Immediate Full
Death Benefits are generally available to qualifying
applicants when no serious or immediate health concerns are
presented.
Graded Death
Benefits are available when serious health concerns are
presented. Graded plans provide limited benefits during the
first few years of the policy.
Guaranteed
Issue Benefit Plans may also be available to you if your
health makes you ineligible for for the standard or graded
burial insurance products. These are available regardless of
health and provide a graded benefit that provides a full death
benefit after three years of policy payments and limited
benefits before that.
Typical
Payment Plans Available
A Level Pay
Plan calls for premiums to be paid for the life of the
policy.
A 10 Pay
Plan calls for premiums to be paid for 10 years.
A Single Pay
Plan requires only one premium payment.
10 pay and single
pay plans will often include an annual growth rate on the death
benefit.
To find the cheapest life
insurance, you need to compare prices and policies to
find the perfect coverage for your situation. If you
need to know more about burial insurance and life insurance
in general you can read more.
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