Burial insurance, also known as final expense insurance, can provide you or your family with affordable life protection and it pays in addition to all other insurances that you have. Burial life insurance can be used for any need.
Burial life insurance provides permanent coverage, level premiums and accumulates cash value.
A burial insurance policy assures you coverage for the rest of your life. A burial insurance also gives those you leave behind the flexibility to pay the remaining expenses and debts that may be outstanding. Beneficiaries can use the death benefit to pay for funeral costs, credit card debts, car payments, etc. This form of life insurance protects your loved ones by providing for funeral and burial expenses. This makes a burial insurance policy different from a burial protection policy exclusively covering burial costs.
Burial insurance is simply a type of policy for which you pay a premium, and the benefit goes to the funeral home. The policies can be written in a variety of ways. For example, you can pre-select everything you want at your funeral, from type of casket, to service accessories, number of cars, and so forth. When you have made your selections, the funeral director can add all the costs and sell you an insurance policy with a face value that will cover your choices. Usually you will receive some sort of guarantee that the costs will not exceed the face value of your policy.
With another type of final expense policy, you simply choose a face value that you do not want your funeral to exceed. When you die, the benefit will go to the funeral director first. However, if the face value exceeds the actual cost at the time, any additional funds should go to a contingent beneficiary. It's something you have to ask about as many funeral directors will assume that they are to have the entire face amount regardless of costs unless your contract indicates something different.
Burial insurance allows you to choose the coverage amount appropriate for your circumstances. You can choose the policy for your personal needs. Burial insurance policies are simplified issue meaning there is a short application and no medical exam.