Growing more common ever year, burial insurance is a way for seniors to prepare for their death ahead of time. By not leaving the details and financial burden of the funeral to loved ones, seniors can rest easy knowing that everything is taken care of.
In grief over the loss of their loved one, families often spend more then they need to on funeral arrangements because they are making decisions based on emotion – purchasing a more expensive casket then needed, adding on extras to the service that aren’t necessary. With burial insurance and planning, some of these decisions can be made ahead of time and not left to the grieving family. Also, by having burial insurance the financial responsibility of the funeral doesn’t fall on the family.
There are several types of burial insurance and seniors can choose the plan that best fits their family’s needs. These vary from full planning to just monetary planning.
Cash Payout Plan
With a cash payout plan, the insured will choose a certain amount of coverage. They will pay in full or pay premiums up to the amount they want covered. With this plan the person generally doesn’t choose what types of services they want, they just plan to have money enough to cover funeral and burial costs. Upon the insured’s death, the family gets the money that was left in the burial insurance policy. The family then uses the money to plan the details of the service, from purchasing the casket to deciding on headstones and everything in between.
The prepayment play allows the insured to plan every detail of their funeral and burial services. They choose their casket, they choose if they want music at the service, they pick their headstone, they plan their obituary and what papers it will run in. With the prepayment plan, the services are purchased ahead of time at today’s prices. The insured does not have to worry about inflation or the policy not having enough money in it. Everything is paid for in advance with the policy. This can help seniors know how much money they need in their policy because they are choosing exactly what will be used at their services and know exactly how much it will cost.
Paying into an insurance program has a lot of the same features as the prepayment plan in that the insured chooses what services and items they would like for their burial. They would meet with the funeral director and dictate their wishes for casket, service type, flowers and the like. However, in this case, they do not prepay for these services. They pay into their burial insurance plan and the money accumulates much like the cash payout plan. Upon their death their family is given the money and then they pay for the services that the deceased has chosen. Because the items are not purchased ahead of time, prices may increase over the years and the family might have to pay an additional balance to make up the difference.