Burial insurance plan, also referred to as final expense or pre-need insurance plan, is designed to offer coverage for seniors to take care of their funeral expenses. In general, the burial insurance for seniors is available to persons between fifty and eighty-five years old. The report and statistics say that young and middle-aged people are more likely to go for a term or permanent life coverage whereas seniors prefer funeral coverage only due to its simplicity and inexpensiveness.
Types of Burial Insurance:
There are two types on offer in the USA today, the Guaranteed Issue and the Simplified Issue.
The Guaranteed Issue plan for burial insurance is the type where applicants are already guaranteed to get accepted for despite their condition or circumstances. It is extremely valuable and massively popular for millions of people across the US right now. This is because you are not required to undergo any medical tests or examinations. This type of policy is available at a cost that is slightly higher – an amount that makes it possible to provide peace of mind and extensive coverage without the usual medical checks and health questions. The monthly rates will be higher for older persons. In addition, the Guaranteed Issue policies normally require persons to make payments for two years at the very least before they can use/withdraw their plans.
The Simplified Issue plan is considered the preferable option by most and it’s associated with lower costs which give an affordable burial insurance policy. However, applicants have to answer more questions and do a medical examination to qualify for coverage under this plan. As soon as the medical screening results are in, the plan can be given directly in line with the applicant’s current circumstances and health condition. With it, persons are granted peace of mind completely and quickly. There is really no better way to remove a huge financial burden from dependents/family members than to ensure that a perfectly tailored insurance policy is purchased at the right moment.
At this point, it’s worth mentioning that burial insurance policies/plans will work similarly to the term life or whole life insurance policies. Term life policies provide coverage for the policyholder’s life for a specific period, such as ten years, after which the policy is terminated and the cover is no longer available. Whole life policies provide coverage from the time that it’s bought until the policyholder’s death. The policyholders have to give the name of the beneficiary who would receive the money after death at the time when they are purchasing the plans.
When it comes to choosing between the two types of burial insurance coverage, there is really no right or wrong choice as it will come down to personal preferences and the plan that is best suited for your needs. After all, the two types of policies are geared towards the same result and naturally will cover most of the expenses which might otherwise burden your family after death.