There are different types of insurance plans intended to help with specific areas of life. Burial insurance is a type of insurance plan that pays benefits upon your passing. So, how does it help?
Burial insurance can seem like a frivolous expense. But it offers benefits that can help your family upon your passing.
Covers Burial Costs
Burial insurance pays benefits to the beneficiary mentioned in the plan upon the policyholder’s death. The benefit amount is for covering the expenses of the burial ceremony including the memorial service and other costs related to the funeral. You can even choose the funeral home as the beneficiary.
For instance, if you need to buy burial insurance in Texas; you can choose the funeral home of your choice in the city or town you live in and make them the beneficiary. In case you don’t have family living in the same place; this can be an ideal choice for taking care of your burial expenses.
With the help of burial insurance, you can have the kind of funeral you want without having to worry about your family or relatives having to spend the money from their own pockets.
Provides Funds for other Expenses
There can be other expenses also, which you can cover with burial insurance. There can be legal bills, due tax amount, any other debt owed by the policyholder to handle upon someone’s sudden demise.
These unpaid bills then become the responsibility of the surviving family members. It may not be possible for them to pay the bills comfortably or without taking on the additional financial burden. You can avoid all these hassles by simply buying burial insurance. The funds available upon your passing can be utilized for these expenses.
You can even withdraw some or all of the funds of your burial insurance benefits in your life if you suddenly need urgent money. Yes, doing so will affect your final benefit amount upon your death. But at least access to the policy funds is likely to offer you some peace of mind for emergency situations.
Gives your Family Relief
Funeral costs can get very high. Even the simplest of ceremonies can cost quite a lot. With burial insurance, you can be at peace that your surviving family members won’t have to go through the financial stress of planning your funeral. Imagine your family having to experience financial stress in addition to the sadness of your passing! You can spare them the hassles of arranging the funds for the funeral and simply have a peaceful time to say final goodbye to you.
Other Benefits
It is easy to buy burial insurance. There are no conditions attached for its purchase such as doctor checkups to qualify for one. Your insurer may ask you a few questions and you can qualify to purchase the policy.
You can even buy the policy online. An independent insurance company or agent can help you understand the process before you buy it. Some people may need to wait for a period of two years before the benefits of the policy can be used. Others have to go through no waiting period. Their burial policy benefits begin from the day of the approval of the application.
You also don’t need to spend a lot of money on paying its premium. You can purchase the policy with minimal coverage also. You need not spend large sums of money if you have no desire to do so. One of the best things about buying burial insurance is that it is quite inexpensive to buy but provides real benefits to your family upon your passing. The premium amount also remains the same for burial insurance. So, you don’t accrue additional expenses for paying the premium amount with every passing year.
It is a type of permanent policy with no term expiration date. The policy doesn’t expire as long as you are current with your premium payments.
Permanent policies also offer tax benefits. Due to the cash-value component of permanent policies, you can get some tax benefits on your burial insurance. Your insurance agent can help you find the right policy with the right benefits.