Burial insurance, also known as final expense insurance, is an important consideration for many individuals, particularly seniors. However, with its growing popularity come a number of myths and misconceptions. These myths can create unnecessary confusion and even deter people from making informed decisions about their financial future. In this post, we aim to debunk some of the most common myths about burial insurance, ensuring you have the knowledge to make the best choice for you and your family.
Myth 1: Burial Insurance is the Same as Life Insurance
One of the most pervasive myths is that burial insurance and life insurance are identical. While both are types of insurance, their purposes and coverage amounts differ significantly.
Life Insurance: Generally, life insurance policies are designed to replace income and help with long-term financial needs like mortgage payments, college tuition, and other significant expenses. They usually have larger benefit amounts, ranging from $100,000 to several million dollars.
Burial Insurance: Conversely, burial insurance is specifically intended to cover funeral and burial costs, which typically range from $5,000 to $25,000. This makes it a more focused and affordable option for those wanting to ensure their end-of-life expenses are covered.
Myth 2: Burial Insurance is Too Expensive
Another common misconception is that burial insurance is prohibitively expensive. This myth often arises from a lack of understanding about the different types of policies available and the flexibility they offer.
- Affordable Premiums: Burial insurance policies can be quite affordable, especially when compared to traditional life insurance. Monthly premiums can range from as low as $20 to $80, depending on factors like age, health, and the coverage amount.
- Flexible Payment Options: Many insurance providers offer flexible payment plans, allowing you to choose a schedule that fits your budget, whether it’s monthly, quarterly, or annually.
For accurate price comparisons, consider using Noble Financials instant quote tool.
Myth 3: You Need a Medical Exam to Qualify
Contrary to popular belief, most burial insurance policies do not require a medical exam. This makes them an accessible option for seniors or individuals with health issues.
No Exam, No Problem
Instead of a medical exam, applicants typically answer a few health-related questions on their application. The underwriting process is simplified, and approval can be quick, often within a matter of days.
Guaranteed Issue Policies
There are also guaranteed issue policies available. These policies do not require any health questions or medical exams, making them an excellent option for those with pre-existing conditions. However, they may come with a higher premium and a graded death benefit during the first few years of the policy.
Myth 4: Burial Insurance Doesn’t Offer Enough Coverage
Some people believe that burial insurance won’t provide sufficient coverage for their final expenses. However, this is usually not the case if you choose the right policy.
- Customizable Coverage: Burial insurance policies are often customizable, allowing you to choose a coverage amount that aligns with your anticipated final expenses.
- Supplemental Coverage: If you have existing life insurance, burial insurance can serve as a supplementary policy to ensure all your financial needs are met.
Using tools like A funeral cost calculator can help you estimate your needs and choose an appropriate coverage amount.
Myth 5: Young People Don’t Need Burial Insurance
While it’s true that burial insurance is most commonly purchased by seniors, it’s a mistake to assume that younger people don’t need it. Here’s why:
- Lower Premiums: Younger individuals can lock in lower premiums by purchasing a policy early. Over time, this can result in significant savings.
- Peace of Mind: Having burial insurance ensures that unexpected end-of-life expenses won’t burden your loved ones, regardless of your age.
Even if you’re young and healthy, it’s worth considering burial insurance as part of your long-term financial planning strategy.
Ultimately, understanding the facts about burial insurance can help you make informed decisions and provide peace of mind for you and your family. For expert guidance and to compare policies from over 20 reputable companies, schedule with Noble Financial Agency. Our licensed agents are here to offer impartial advice, ensuring you find the best policy tailored to your needs.
Call 1-877-343-4648 To Speak With a Licensed Independent Agent!