Life insurance is necessary for every individual to protect their families and provide financial security after they pass away. There are various varieties of insurance policies available in the market depending on your budget, medical history, ailments, income, and family structure.
If you are a healthy, young, and earning individual, availing of full-fledged life insurance is a piece of cake. This is because there is a long list of insurance companies out there catering to each budget type. However, if you are suffering from or diagnosed for a terminal disease or have arrived towards the end of your life, your chances of getting life insurance are slim.
According to insurance experts like “Gary P. Cubeta” from “Insurance for final expenses”, policies like Mutual of Omaha Burial Insurance are a type of life insurance that dedicates itself to funeral costs and provides some respite to your mourning family. This insurance also pays the death benefit of your policy to your beneficiary. This insurance policy is also dedicated to people who cannot avail of a life insurance policy because of their ailments or age.
There is a common assumption that burial insurance is the same as funeral insurance. However, the assumption is entirely false. If you are a senior over 70 and are looking to avail of burial insurance, here is some vital information about its coverage that you mustn’t ignore-
What is Burial Insurance?
Burial insurance, also sometimes called funeral insurance or final expense insurance, is a type of whole life insurance policy that will take care of the funeral costs and provides death benefits to the beneficiary. While the death benefit is not a huge amount, it still reduces some amount of financial load from your family’s shoulder.
As opposed to conventional life insurance covering several different aspects of your life, burial insurance only covers the funeral costs and death benefits. Hence, such policies are available at lesser costs, within the range of $5000 to $25000.
Burial insurance is still a new concept entering the market, and hence, not many people are aware of it. This type of insurance plan is specifically designed for people who cannot avail of any other insurance policies due to their age or deteriorating health. This type of insurance is also beneficial for people who cannot afford a full-fledged life insurance policy.
Factors Affecting Burial Insurance
Burial insurance is one of the best and most affordable life insurance policies, especially if you are a senior over 70. Various policies such as Mutual of Omaha burial insurance are available out there for you to choose from.
However, you must understand the insurance’s coverage and the factors affecting it. As mentioned before, burial insurance is not extravagant. It only covers your funeral expenses and provides death benefits to your beneficiary after your demise (covering other small debts, in some cases). Having said that, it is easy to get and affordable to avail.
The cost of burial insurance, in general, is affected by a variety of factors. These factors include age, state, gender, usage of tobacco or smoking habits, coverage amount, and type of death benefit that you are looking to seek.
Usually, the premiums you have to pay to get this insurance are directly proportional to the age factor. Hence, the older you are, the costlier the premiums get. Although this factor may discourage you from getting burial insurance, there are various insurance providers out there who can provide you this policy within your budget restrictions.
Common Reasons to Avail the Insurance
One can come up with many reasons to explain why availing of burial insurance is a good option. The basic reason why you should use this insurance policy is to protect your family from paying for the funeral costs while mourning your demise.
The insurance policy may also cover other small debts other than the burial costs. Moreover, this policy pays directly to your chosen beneficiary, gives you a fixed level cost to avail the insurance, etc. This policy is also easy to qualify for and hence, the perfect option for you.
Burial insurance such as Mutual of Omaha burial insurance is a variant of a whole life insurance policy specially designed to aid people who do not have the right age, medical history, health, or financial ability to apply life insurance policy. This policy covers your funeral costs and pays a certain amount to your beneficiary.
Thus, it is a kind and a gesture of goodwill towards your mourning family after your demise. However, before availing of this policy, you must understand its intricacies, coverage, and other aspects to make the right choice.