What is Burial Insurance?
Burial Insurance is a basic form of life of insurance designed to cover funeral and burial costs in the event of death.
In exchange for a monthly or annual premium, the beneficiary indicated in the policy is paid a fixed sum at the time of the policy-holder’s death, in order to cover associated costs.
The beneficiary may or may not use all of the money to cover these costs.
What are the different types of Burial Insurance?
As with any insurance policy, there are various levels of Burial Insurance with different premiums and payouts.
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For example, an individual expecting a very large funeral will typically purchase a larger policy with higher premiums and a larger payout.
Is Burial Insurance effective immediately?
Some policies are effective immediately, while others have a waiting period.
A level benefit policy means that the full benefit is in effect immediately, while a graded benefit policy indicates a waiting period (usually one or two years) before the full benefit is in effect.
Who can purchase Burial Insurance? Is a medical exam required?
Insurance companies set their own policies on who can purchase this type of insurance.
Many companies only offer Burial Insurance to people between the ages of 50 and 85, although some companies offer policies to individuals outside that range.
Medical exams are typically not required, although a medical questionnaire is completed by the applicant.
Approval for Burial Insurance is often very easy to obtain.
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