Laying a loved one to rest is very expensive for most people. It used to be that family members would pool their funds or would be able to pay for services over time. Today, though, most funeral homes require payment in full at the time that their services are rendered, and the average cost of a funeral can exceed $7,000.
Preplanning can be a helpful way to deal with these expenses. Two of the most common types of preplanning include purchasing either traditional life insurance or burial insurance. A number of key benefits can make burial insurance a better alternative than life insurance. These advantages include:
- Less Stringent Underwriting Requirements. An applicant is not required to undergo a medical examination in order to purchase burial insurance. Although approval is still not guaranteed, the more relaxed underwriting requirements can help many individuals who would not otherwise qualify for life insurance coverage obtain funds for final expenses. Forgoing a medical exam can also lead to a faster policy-approval time and thus obtaining coverage much sooner than if the applicant were required to go through an underwriting process.
- Affordability. Burial insurance is usually more affordable, as these policies’ premiums (payments) typically remain constant until age 100, which, at current life expectancies, means that most burial insurance policyholders will have, in effect, their premium stay the same for life.
- Peace of Mind. Even greater than the actual amount of the benefit that is received is the peace of mind that survivors can have in knowing that expenses will already be taken care of when their loved one passes away. This frees the survivors from worries of major financial matters and enables them to focus on other important matters during an already difficult time.