Burial insurance, better known as funeral insurance is a type of insurance designed to cover the cost of internment and memorial services. Today, most people, especially the seniors are getting funeral insurance to deal with the burial and funeral services costs when they pass on.
Most of these individuals don't want to leave financial burdens to their loved ones, given that it is already a time of grief and pain. Cremation, burial, medical costs, music, and flowers are some of the expenses that these insurance policies cover. However, there are various considerations that an individual should make before purchasing funeral insurance. Some of them include the arrangement and expense of the funeral, the location of the cemetery, cost of the casket and much more.
Apart from these considerations, he or she needs to know the pros and cons of funeral insurance:
Cash To Cover Funeral Arrangements
The insurance provider will give the grieving ones cash to use for the funeral arrangements. The cash amount usually depends on the policy that the dead relative had purchased.
Chosen Funeral and Burial
One of the great things about having funeral insurance is that when the person dies, they will have the memorial and internment services done according to their will. He or she will have a burial that they think they deserve.
Bonus Monthly Payouts
Another pro with funeral insurance is that the loved ones left behind by the insured will be receiving monthly bonus pay from the insurance provider. This cash is expected to help in covering bill expenses, food, and utility.
Funeral Insurance Policy Might Not Be An Investment
The person who chooses to take funeral insurance will not have control on how his or her money is endowed. Also, some providers offer very little interest, and some policies tend to be overpriced. What this implies is that some policies can cost more than the funeral coverage, meaning that they will be paying more premiums than what is to be compensated during a claim.
The Policy May No Pay In Full
Some providers offering burial insurance practice waiting periods. These periods tend to reduce the benefits of the insured, and there are times where there can be no benefits altogether. This means that the policy can decrease in value as time goes by.
With these pros and cons, a person needs to evaluate their situation carefully before making a decision. These ups and downs will also help in choosing a policy that is best suited for their needs.