You get bombarded by them constantly.
They're on the TV. They're on the radio. Almost every minute on any platform with advertising is filled with them. There's just no escaping them, and honestly, that's a good thing. They are quite important.
We are, of course, talking about
insurance ads. As annoying as each individual commercial may be, we do advise
that you have some insurance for the various aspects of your life (Especially
if you drive a car. It's very illegal to do so without auto insurance!).
Nevertheless, most people are well informed about the various types you can purchase for yourself. There's home, auto, pet, and life insurance, just to name a few. And while most people are familiar with these very generic types of insurance, it's the nitty gritty details that may confuse us all. Unfortunately, we cannot explain the whole spectrum of insurance policies to you. However, we can help you with the subjects we do know plenty about: Life vs. Burial Insurance. It's important to know the difference. Continue reading on to learn more.
In a way that dementia is an umbrella term for Alzheimer's (the two terms are not interchangeable), so is Life Insurance with Burial Insurance. Alzheimer's is just one type of dementia, while Burial Insurance is just one type of Life Insurance. However, we should back up and explain Life Insurance first.
To qualify for Life Insurance, you may have to take a medical exam. The direct results of those tests may dictate what rate you qualify for. It's just another reason to stay in good health! Individuals with better medical records tend to get better rates. Once you are approved, you agree to pay a preset amount of money periodically to the insurance company.
You might be thinking, "Why would I pay money to an insurance company who's only going to payout after I die?" Well, most of us realize the importance of life insurance to help our loved ones continue covering their regular expenses in the event of our passing. Life is expensive, there's no doubt about it. And this could be doubly disastrous to your loved one if they depended on some of your income to pay the bills. The purpose of Life Insurance is to ensure that there's enough money to settle outstanding debts and continue to provide for your family's needs. That's not such a bad thing, is it?
It's considered a long-term financial security measure and there is a wide spectrum of different options, depending on your needs. When you're in the market for insurance policies to protect your beneficiaries, you need to make sure you understand what you're shopping for and what your purchase options are.
Popular types of life insurance include Term Life and Whole Life Insurance. The difference being Term Life has a set limit of years that it can cover you, usually with limits of 15-to-30 years. Whole Life Insurance does not expire. It covers you up until your last day.
One key difference between Burial Insurance and Life Insurance is that a Burial Insurance policy does not require a medical exam. To get an approval, you just need to answer a few medical questions and clarify your medication history. Once you qualify, most insurance companies can issue your policy in just a few days. Once in force, a Burial Insurance policy can pay your funeral expenses quickly. It'll cover costs that may include your burial plot, cemetery fees, grave marker, casket, cremation, embalming, flowers, hearse, and other final expenses. In fact, some Burial Insurance policies have the ability to pay benefits in as fast as 24 hours without a death certificate. This is the main reason why most funeral homes accept it as direct payment without additional requirements. This can be a great advantage when covering your death-related expenses.
Burial Insurance is a tool you can use to help your loved ones pay for your final expenses. It is considered a type of Life Insurance policy, but it offers a smaller benefit amount than traditional term Life Insurance because its focus is smaller. As with all insurance, the cost is based on your age and health when you start.
When you take out a Burial Insurance policy, you intend to shield your loved ones from the complications of paying for your final expenses. Regardless of how you intend to be celebrated, you'll want some funds set aside for the final arrangements. This type of policy eliminates the need for loved ones to pay these expenses out-of-pocket. Unlike traditional term, whole life, and universal life policies, Burial Insurance is specifically designed to cover one-time and short-term expenses. It isn't meant to replace income or cover large expenses like purchasing a home or paying for college. It isn't a type of retirement plan or investment either.
Its primary use is covering funeral costs, but your beneficiary can use it for any end-of-life expenses like unpaid medical bills, outstanding credit card debt, or various bills accrued in the month of your passing (phone bill, utility bills, car payment, etc.).
Research Before You Decide
Before making a final decision on Burial Insurance vs. Life Insurance, or both, research it first. Not all companies provide you with the same type of policies. If you're only looking to cover the basic costs of your loved one or self, then consider choosing Burial Insurance. However, if you'd like them to have extra money to cover expenses outside of the funeral arrangements, select the Life Insurance policy that works best for them. Familiarize yourself with each detail to verify that this is the correct insurance policy for you and your beneficiaries. Not understanding all of the details ahead of time could cost your surviving loved ones much aggravation and more grief. Being fully prepared will make the entire process of planning your funeral much easier to deal with. Ultimately, you may want to consider purchasing both types of policies to provide the ideal protection to your family.