Final Expense plans through Monumental Life can alleviate the financial burdens caused by the passing of a loved one. Monumental Plans include the Legacy Safeguard program -- an invaluable asset to you and your family. Watch the video and see what Legacy Safeguard can do for you and your loved ones.
Do You Need Burial
You have probably seen ads for this type of coverage. Sometimes it is called burial insurance, funeral insurance, a final expense policy, or senior life insurance.
A burial insurance policy is, basically, a whole life insurance policy with a small face value when compared to other types of life policies.
Typical death benefits range from $2,500 – $25,000. They are usually marketed to people in middle age or retirement age. A typical policy may accept applicants from 50 to 80, though I have seen them go up to age 85. It is meant to cover final expenses that crop up after a person passes away. This could be the funeral, burial plot, travel arrangements, setting debts, and other associated bills like this. However, it is important to note that the death benefit is paid out in cash to the beneficiary. They are free to use the money any way they choose.Simplified vs. Guaranteed Issue
Insurers have designed these policies so that older people, between about 50 and 80, have a fairly easy time applying and getting accepted. Simplified issue policies ask very few health questions, so most people can qualify. Guaranteed issue policies ask no health questions.
If you can qualify, simplified issue rates are lower. You should also get an immediate death benefit with no waiting period.
If you cannot qualify for simplified issue, a guaranteed issue plan may still be a good option. It will cost a bit more, and there is usually a waiting period that must be satisfied before the full benefit will be paid. Most of the time,premiums will be refunded if the insured person passes away before the waiting period has expired. Sometimes the premiums will even be refunded with interest.
It is important to select the best policy for your own situation, and not to just purchase the first policy you happen to see advertised in a magazine or on TV.
Who Needs Burial Insurance?
Funerals are expensive, and some estimate that an average US funeral can cost $8,000 – $10,000 or more. An policy may be an affordable way to make sure there is cash to pay for this.
The proceeds from the policy will be paid to the named beneficiary, and not to the funeral home. That person can use the cash in any way they need to. So the beneficiary, or beneficiaries, can keep any money that is left over.
Who Buys Final Expense Insurance?
Sometimes older people purchase a policy for themselves. Sometimes family members, like grown children, will pay the premiums. It can be a tough subject to bring up, but a lot of times it is a big relief to handle the problem of end of life expenses.
How Much Does A Burial Policy Cost?
As with any type of life insurance, the premium will depend upon the age of the insured person,their health, where they live, and of course, the insurance company.
Should You Buy Final Expense Insurance?
There is not one right answer to this question for all people. If you already have plenty of extra money set aside for end of life expenses, this may not be the right product for you. But if your family is operating on a tight budget, a burial policy can be an affordable way to make sure these expenses are covered