How does Burial Life Insurance Work?

​​When thinking about how you will arrange for final burial expenses including your funeral costs, you may be confused by your options. What’s more is that thinking about death isn’t something most people like to do, and so emotion can sometimes get in the way of making sound decisions.
 
By learning what you need to know about burial life insurance now, you can ensure that you make a decision that will be the best for those you leave behind.
 
The first thing is to understand the differences between a day one burial life plan and a graded death benefit life insurance policy. Some life insurance companies will call these policies final expense life insurance, they are really just permanent guaranteed issue whole life insurance policies.
 
Graded death benefit plans ask no health questions and anyone can qualify no matter your health.  With a day one burial policy, it will typically only ask up to 6 health questions.
 
Burial Whole Life Insurance vs. a Pre-Paid Funeral Life Insurance Plan.
With burial whole life insurance, the people you leave behind would be able to pay for your burial expenses and there could still be money left over with which they can support themselves and cover other miscellaneous costs, tax-free. Owning your policy has many advantages versus a pre-paid funeral plan. What’s more is that a burial whole life insurance policy gives your beneficiaries the freedom to decide how the money can be used, while a pre-paid funeral plan forces you to designate all of the money towards the funeral expenses at the funeral home in which the plan was purchased.
 
This begs the question, then, of what a person would do if they happened to move to a different state or how you would get your money back if you decided you didn’t want to be buried after all, but would prefer cremation.
 
Another shortcoming of the pre-paid funeral plan is that it leaves no death benefit for beneficiaries. It goes without saying that if they knew all the facts, most people would probably want to leave their loved ones with a little extra money.
 
One of the biggest and less-obvious advantages of a burial life insurance policy is that these policies are often more affordable than a pre-paid funeral plan, as long as you’re in good health. Then, when it comes time to making payments on your policy, you also have many different payment options.
 
As you can see, burial whole life insurance offers much more flexible and even affordable coverage than a pre-paid funeral plan. Consider how each works carefully before making your decision.

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