Planning for end-of-life expenses is something that people need to be prepared for financially, and one simple way to do that is through burial insurance. The global burial insurance market is expected to reach 291.10 billion USD by the year 2024 and is expected to grow to 425.20 billion USD by the year 2031, registering a compound annual growth rate (CAGR) of 5.6%. Primarily meant for ensuring that the costs of the funeral and other associated older-related expenses are met, burial insurance serves as a means of ensuring that the policyholders and their family members are at ease. We will see how it works and the reasons why burial insurance is such a key aspect of financial planning.
What is burial insurance?
Burial insurance, more commonly referred to as funeral coverage insurance, is a form of life insurance that covers the funeral and burial costs, among other expenses related to funerals. This type of insurance is cheaper as compared to traditional life insurance since it covers a lesser amount, which is from US$ 5,000 to US$ 25,000. All of this is to make sure that people never have to deal with financial concerns when they are grieving over the loss of a loved one.
Types of Burial Insurance Policies
- Whole Life: As its name suggests, whole life burial insurance remains on the applicant’s whole life as long as the premium payments are done. The insurance accumulates in cash value and pays for the death of the insured individual. This type is best for people who wish to get insurance coverage throughout their entire life.
- Term Life: This particular insurance is known to cover individuals for a specific period of time, which could be 10-30 years. If the individual still remains alive after the specific period, the coverage ends. However, if the insured passes away within the specified duration, the beneficiaries are entitled to the death benefit It is moderately cheaper than whole life insurance, but the policy does not have cash value.
- Pre-Need Insurance: Such insurance is purchased through funeral directors and is related solely to the contract signed for particular funeral products and services. This insurance also allows individuals to select products and services that they would like their family to use in the event of their death. The policy shields the individual from any price increases in the event of inflation.
Why You Need Burial Insurance?
- Financial Security for Loved Ones: In the average United States, family members end up paying between USD 7000 and USD10000 for a funeral. Departing family members usually do not have money readily available or do not want to dip into their funds; burial insurance takes care of those expenses, relieving the financial burden on the family.
- Easy To Get: Compared to ordinary life insurance, burial insurance has less rigorous underwriting criteria. Some policies don’t require medical exams so that the elderly and others with health issues can obtain them.
- Less Worry: It eases the worry of life insurance owners and their families by making it possible to know that the costs associated with the end of life are paid for. It allows a person to prepare for what must be done without leaving uncertainty as to how to pay it.
Conclusion
For those who aim to alleviate the financial strain to the family members, burial insurance is a sensible and considerate option. Knowing the various kinds of burial insurance and their features, you can pick the right one for your life’s plans. For your family's welfare and protection, funeral cover insurance ought to bring you the peace of mind so that you can concentrate on what is essential, burying all worries.
