What Kind of Expenses does Burial Insurance Cover?

Burial insurance is one of the most common forms of life insurance because it is fairly straightforward in nature. If the policy holder should meet with an untimely demise, the insurance will cover the burial costs so as not to burden the family finances. Burial insurance is generally inexpensive and often purchased by seniors as a practical way to pay the costs of a funeral while the family is suffering through this trying time. This is always heartbreaking to lose someone from a family. Although death is the ultimate truth of life, but at the end of day you’ll definitely miss someone who was always close to you. In the death event, one can hardly think about other things. Thus if you had arranged everything, then family member can take part in your funeral without any hassle. Funeral insurance takes care of everything you need in such event.

While many people have burial insurance coverage, many times it is not enough to match the rising cost of funeral expenses. This is normally because this type of insurance is purchased years in advance and often does not keep up with the rising costs of funeral expenses.

The Typical Cost of a Funeral:

Today, the cost of burial insurance expenses has risen to an average of $9,000. While this average does vary from state to state, in most cases $9,000 will cover the typical costs of a funeral. This is an important figure before for several years after the turn of the 21st century the average cost of a funeral was often described as being just $6,000.

This means that there are many people who may have purchased burial insurance that now does not cover the basic costs of a funeral. This means that the insurance may be thousands of dollars short which results in a financial burden to the family or a funeral that is lacking in basic services. Here after reading this article, you will come to know where your burial insurance benefits will be invested, how much the cost has risen up from last decade and how you should calculate a reasonable coverage amount to be on the safer side. You should never wish to leave some cost on the family.

What does a Typical Burial Insurance Cover?

Here are the typical services that are covered by burial insurance. While there may be some variations from state to state, these are the most common services that occur during a typical funeral. This is the breakdown of costs in a typical funeral that is covered through standard coverage.

  • Casket or Urn: $2,300
  • Visitation: $1,000
  • Cost of Cremation: $600 – $1,000
  • Cost of Embalming: $600
  • Headstone: $2,000
  • Hearse: $100 to $500
  • Digging & Filling the Grave: $1,000
  • Flowers: $100 to $500
  • Cost of the Plot: $1,000
  • Miscellaneous Costs: $600

These are the typical expenses, although there may be other additions as well. But on average it is typical for a family to spend $9,000 to $10,000 on a funeral service.

The Cost of Burial Insurance Today:

While the cost of a funeral has gone up considerably over the years, the actual costs of burial insurance to match those costs have gone up very little by comparison. There are several reasons for this, but one of the primary ones is that as an inexpensive form of life insurance, the difference between $6,000 and $9,000 in terms of benefits translates to a few dollars per month in premiums.

Burial insurance costs in terms of a monthly premium can be a little as $20 to $35 per month depending on a number of factors which may include the age and relative health of the policy holder. Basically, the older you are, the higher premium will be. Obviously the burial insurance for seniors over 80 will be higher than burial insurance over 70. The difference in premiums is probably not that significant, but why would you pay more when there are opportunities to pay less. Thus the suggestion is to get a coverage as soon as possible and make sure your sudden death does not come as a burden on family.

One option is “pre-funded” burial insurance that will adjust in premiums to cover the rising costs of funeral expenses. You can choose between different policies so that your family can be covered financially in case the worst should occur. Today with the help of the internet, it is easy to compare between different prices and even you can purchase an affordable policy right sitting at home.