Burial insurance, also referred to as funeral insurance, final expense insurance, or senior life insurance, is sold to people as an aid to help them overcome their financial loose ends before the end of their life. This insurance also reduces families’ burden to cover expensive funerals and other necessary expenses while also dealing with losing their loved ones. Aside from the extensive marketing tactics, burial insurance is just a variant of whole life insurance. Due to the increasing preference among the common public, more and more companies are introducing such financial aids.
The Mutual of Omaha Burial Insurance policy is one such option available in the market. Such insurance policies are beneficial because of their cost-effectiveness and easy availability. However, before buying burial insurance, you must be aware of its intricacies and workings. Here are some important pointers to help you understand and make the right decision.
What Is Burial Insurance?
Simply put, Burial insurance represents a type of life insurance specifically designed to cover funeral costs and other expenses after the loss of a loved one. The insurance also stands as a heartfelt gesture towards your family by taking away the burden of undue expenditure. Although it is heavily marketed as a crucial step towards your family’s well-being, it is just a variant of life insurance with an additional advantage of small death expenses. Your family is free to use this benefit for any purpose.
A long list of companies provides burial insurance to their customers and clients. However, the cost of such financial aid depends on your health. Commonly, the policies are made affordable for you after completing detailed medical insurance and if you’re not terminally ill. Although burial insurance may not offer much value per dollar compared to a full-fledged life insurance policy, it shall offer additional financial aid to families.
Workings of a Burial Insurance
According to the insurance guidelines, it is usually issued to people who have crossed 50. You also can avail of burial insurance for even a small amount of $10 per month depending on your prevailing health conditions, the company issuing the policy, and the plan you select.
While availing of an insurance policy, you must choose a beneficiary. After that, all cash benefits of the policy shall directly go to your chosen beneficiary. You also choose to pay the premiums either monthly or yearly, depending on your financial condition. As long as you consistently pay off your premiums, your burial insurance policy shall not expire. Lastly, your premiums’ value shall not increase, and you are permitted to pay the coverage amount till the age of 100.
Benefits of Availing Burial Insurance
Burial insurance policies are the preferred source to support your family after your passing away because they are relatively inexpensive. While a policy may be available at affordable rates, a life insurance policy shall cost you nothing less than $50,000 or $100,000. Moreover, the premiums for burial insurance are easy to afford. The same cannot be guaranteed concerning larger policies. Burial policies are now easy to avail through telephone, various insurance websites, or meeting an insurance provider.
You may not be subjected to a full-fledged and tedious medical examination while trying to purchase burial insurance. Such policies without any prior medical questioning are called guaranteed acceptance or guaranteed issue life insurance. They are usually provided to terminally ill patients who do not qualify for other life insurance policies. In such policies, if the insured person passes away during the waiting period, the beneficiary receives the premiums paid along with substantial interests.
Burial insurance is a growing concept provided by a large number of insurance companies, both small and large. It falls under the ambit of life insurance with additional benefits to financially support the grieving family. Various funeral insurance policies like Mutual of Omaha Burial Insurance are available to choose from. However, you must understand the implications of a burial policy and select the policy that fits your budget and financial conditions.