Most Americans go for comprehensive insurance policies so that they can leave a hefty amount of money in the form of benefits to their beneficiaries. The proceeds are usually used to cover funeral and burial expenses. Find why should you never overlook the last expenses insurance.
In some instances, your parents may not be in a position to arrange for burial insurance. But, firms like Gerber burial insurance help you with such a policy. You could act as a dependent and set up burial last expenses insurance in your parents’ names in such an event.
This way, you don’t have to worry about making last-minute arrangements to fund their burial expenses.
How much do funerals and burials cost?
As earlier stated, burial insurance, also referred to as last expenses insurance offers cash value. The benefits typically range from $1,000 to $100,000 depending on the insurer, your age, and prevailing health conditions.
According to data from the National Funeral Directors Associations, the average funeral cost in the US is around $9,000. Please note that this price doesn’t include any cremation costs, which start at $6,000, bringing the total to $15,000.
How much does burial insurance cost?
Just like life insurance policies, burial insurance policies vary in cost. The price depends on several factors, including the health, age, gender of the policyholder, and how large a policy you select.
On average, you can expect to pay anything between $50 to $10,000 a month for a burial insurance policy.
Burial insurance options
- Graded benefits burial insurance
For baby boomers with health concerns, burial policies with graded benefits could be the ideal pick. Why? Because they don’t have to undergo medical tests and are liable to receive life coverage.
Over time, the policy accumulates cash value, and the premiums remain the same. The critical difference between this policy and the others is that the part remains liable to receive only partial cover during the waiting period- usually two years since purchase.
- Burial insurance
This policy is particularly popular with millennial shoppers. If you are healthy and in good shape, you can get this policy without necessarily going through medical tests and examinations.
Like with the graded benefits insurance policy, the premiums remain unchanged throughout the policy’s life. The cover usually offers cash value benefits, which accrue over time. The proceeds can be used to cover funeral expenses.
- Term life insurance
It may be wise to get this insurance policy if your parents are in good health. It covers all the funeral costs that may arise later. Term life policies are one of the most affordable packages available in the market.
They also have lower premium rates, which stay constant for the entire duration of the policy. Unlike the rest, your parents will have to undergo a medical test to check their overall health status. The underwriters use the results to formulate the term of the policy.
Death is a reality; it’s bound to happen at some point in time; therefore, it’s to your advantage to work towards its preparation. There are numerous insurance firms offering various burial insurance policies, such as the Gerber burial insurance policy.
Take your time while picking a policy that matches your future needs. The quicker you work toward adopting a policy, the better.