Burial And Cremation Insurance, Final Expenses Insurance In The Fort Collins And Loveland Area!
Understanding the Different Types of Funeral Insurance
Dealing with the loss of a loved one is difficult and stirs
up a lot of emotions. While you expect to feel sad and go through the grieving
process, you might not be prepared to handle the high costs related to honoring
your loved one's memory.
In fact, you may be surprised that funeral, burial and other services can add
up to thousands of dollars. The financial aspect can cause unnecessary stress
during a sensitive time in your life. On top of that, there are a myriad
options that can become confusing.
Fortunately, you and your loved ones can plan ahead. As part of the preplanning
process, you can get financial security with insurance. There are three main
types: burial & cremation insurance, preneed funeral insurance and final
expense insurance. Since they differ slightly, it's important to understand how
each of them works.
Burial & Cremation Insurance
Simply referred to as burial insurance, this type of policy offers coverage for
funeral and burial expenses upon your death. Also called funeral insurance, it
covers cremation costs as well. Depending on the specific policy that you
choose, it will pay $5,000 to $25,000. However, some policies have higher
benefits.
In general, a burial insurance plan can cover just one person or an entire
family. The beneficiary can be whomever you want, and the insurer will pay the
benefit directly to the beneficiary when you pass away. Best of all, your
beneficiary can use the money for more than burial costs.
For example, let's say that your burial insurance covers $20,000. In scenario
A, your beneficiary might spend all of that benefit on a funeral and burial. In
scenario B, the beneficiary may only need to cover $5,000 for a cremation and
service. With the other $15,000, your beneficiary can pay off outstanding
credit, legal, medical and other debt.
You can get burial insurance from a life insurance company, but some funeral
homes offer policies as well. Because of that, you could have the option
between a term or life policy. When you apply, you don't usually need to
undergo a medical exam first. If you qualify and sign the contract, you'll pay
a small weekly or monthly premium, which never changes. Some other benefits
include:
- You usually apply for a policy over the phone.
- The coverage starts as soon as you sign the contract and make the first payment.
- You may qualify even if you have health issues.
Preneed Funeral Panning &
Insurance
Like burial insurance, preneed funeral insurance sets aside funds for your
funeral. However, it covers predetermined costs and may even protect against
inflation by locking into current prices. The main difference, though, is that
is doesn't pay the benefits to a beneficiary upon your passing. Instead, the
benefits are paid directly to your chosen funeral provider.
Because of these differences, preneed funeral insurance takes the guesswork out
of making funeral arrangements. You work with the funeral provider to make all
of the arrangements. As a result, the cost of this insurance is directly
related to the options that you choose. When you pay for the policy, it stays
in effect for life. Then, your loved ones can focus on healing rather than
planning your funeral.
Final Expense Insurance
Final expense insurance is more like burial insurance than preneed funeral
insurance. The reason is that you pay a premium for the policy and get to name
a beneficiary. Also, most policies cover $5,000 to $25,000 in expenses
depending on what you choose, and they're effective as soon as you sign and
make your first payment. Because of that, scenarios A and B above apply to this
type of insurance plan as well.
However, a difference with final expense insurance is that the policies
typically have medical or age limits. For instance, you might pay a higher
premium if you have certain health issues. Despite that, you don't have to
undergo an exam to qualify for a policy. Instead, you must swear that, to the
best of your knowledge, you're in good health.
Other Preplanning Cremation & Funeral Factors to Consider
If you have trouble choosing between these insurance policies, it can help to
consider the other factors that go into preplanning a funeral. Mainly, knowing
whether you want to be buried or cremated can lead you in the right direction.
When you choose burial, your funeral expenses could be much higher than if you
choose cremation. Some of the fees include the burial plot, grave liner, groundskeeping,
perpetual care and other maintenance. Of course, you also have to purchase a
casket.
With a cremation, you don't have to worry about burial plot expenses unless you
want your remains buried. However, you'll need a casket or alternative container
to use for the cremation. You also need a container for your cremated remains.
There are a range of options at a variety of price points.
Prepaid Cremation & Funeral Services
In addition to these burial and cremation expenses, there are fees for viewing,
memorial and funeral services. However, you can spend as much or little as you
want on these options. After considering these factors, you'll have a better
foundation on which to make a decision for funeral insurance.
© By Jennifer Connell