Term Life Insurance Q&A
- Why should I choose BeyondQuotes?
- Which companies do we represent?
- Is BeyondQuotes licensed where I live?
- Is my information confidential?
- Do you only offer rate quotes?
- How do we choose which companies to represent?
- How much Term Life Insurance do I need?
- What are "level" policies?
- What should be the term length?
- Is it worth insuring my spouse on my policy?
- Can you explain the difference between Term and Whole Life plans?
- I suffer form a pre-existing condition. Can I still be insured?
Applying for a Policy
- How do I apply for Term Life Insurance?
- How do I find the best value plan for my needs?
- What is the waiting period between applying and coverage?
Planning and Buying Burial Insurance
Burial insurance is a simple concept; it is a condensed whole life insurance plan solely for the purpose of covering the costs associated with funeral expenses. This may include flowers, transportation, burial plot and embalming costs, crematorium fees and ornamental urns.
Burial insurance can also be used for the purposes of paying outstanding debts such as credit cards and repayments on a mortgage before a probate settlement on the estate.
Planning for Burial Insurance
Arrange a meeting with a funeral director. Here you can discuss the benefits of burial insurance and the costs involved. These costs can vary due to several factors, such as options, size and location. These costs will also increase the more time you spend deciding, so time is of the essence. When meeting a funeral director, it usually pays to do a little prior research online so that you are can make suggestions of your own.
Cremation usually costs less than a burial, as there is no casket, headstone or plot involved. Urns can be buried, stored or given to a family member to keep.
Traditional burials involve a headstone, casket, burial plot and a concrete liner in which the casket will lie. Should you wish to lie in an open casket, then you must take into account embalming costs on top of other fees.
Environmentally friendly burials are gaining in popularity. This involves no embalming or casket to allow your remains to decompose naturally.
Choosing Your Burial Insurance Policy
If you already have a whole life insurance policy, you may wish to allocate part of the plan to cover final expenses. Your agent will assist you in this. Alternatively, you can buy a policy on top of your current life insurance plan to separate the two purposes.
If you choose a member of your family as the beneficiary on your burial insurance plan, they can then make the final preparations that you specified beforehand. This will need to be discussed at length with the beneficiary after you arrive at your decisions.
If you make the funeral director your beneficiary, they can then allocate the funds as required from the proceeds of your burial insurance policy. It is then necessary to have the discussion with the funeral director as to your wishes for the service and burial.
Payment Options for Your Burial Insurance Policy
There are options available for those wishing to buy burial insurance.
If you can buy your burial insurance plan with one single payment, your beneficiary will immediately receive the full value of the policy when you need it. They can then arrange your final expenses accordingly, no matter how soon the policyholder dies after buying the policy. Sometimes this option is only given to elderly clients, so it's important to consult an agent if you are looking to make a lump-sum payment early on.
A graded benefit policy will provide a certain amount of the face value depending on how many payments you have made. For example, if you choose a policy that will be paid for in 5 years, your beneficiary will only receive all the funds after 5 years; if you die before then, your beneficiary will only receive part of the funds and will have to pay the difference or choose cheaper options.
Traditional policies give the policyholder the total amount of coverage straightaway, provided you meet the regular premium payments. These terminate if the policyholder stops paying before
A traditional policy will provide full coverage immediately as long as you make the payments, but will be canceled if you stop paying.
Graded Benefit policies provide part of the face value according to how many premium payments you have paid. Let's say you opted for a 5 year plan. Should you die before the end of the policy term, you will only get a sum based on the amount of payments that you made, leaving you to either cover the remainder or think of a less expensive option.
This type of funeral insurance is usually available with no medical check-ups and it cannot be cancelled because of infirmity or age. The beneficiary can make use of the given benefits for any purpose.
Unlike term life insurance, these plans last for life as long as the monthly premiums are paid on time. These kinds of policies carry some cash value. If required, you can borrow against the cost of these policies.
If your premiums are paid continuously, then your chosen beneficiaries will receive the funds on the event of your death. The premium for these kinds of policies does not vary with time and the benefits do no decrease. The lack of medical examination makes it much easier for all the people to purchase Burial Insurance.
Based on the kind of funeral you wish to have, your funeral costs can vary dramatically. It is essential to understand these costs prior to purchasing burial insurance plans.
Even cremation comes with variable costs. The majority of funeral homes generally have a list of prices of all their services. It is advised to review this list to get an idea about the cost of your ideal burial ceremony. Nevertheless, one should always bear in mind that many funeral homes do not guarantee that their prices would not escalate over time.
It is beneficial for you to familiarize yourself with all the state and federal laws concerning funerals and insurance while reckoning burial insurance plans. It is essential to acquire at least one statement a year regarding the status of your policy. You are also advised to assess the cancellation terms of the policy with the involved cemetery or funeral home.