Burial insurance, also known as final expense insurance, is a popular choice for individuals looking to cover their funeral and burial costs. However, despite its accessibility and practicality, many misconceptions surround burial insurance, causing people to overlook or misunderstand this valuable option. In this blog, we will debunk the most common myths about burial insurance and provide clarity on how it can help secure peace of mind for you and your loved ones.
Myth 1: Burial Insurance Is Only for the Elderly
One of the most common misconceptions about burial insurance is that it is only meant for seniors. While burial insurance is often marketed to older individuals, it is not exclusively for them. In fact, anyone over the age of 18 can apply for a burial insurance policy. For younger individuals, purchasing burial insurance early can result in lower premiums and long-term savings. The earlier you start, the more affordable your coverage may be, making it a viable option for individuals of any age who want to plan ahead.
Myth 2: If You Have Life Insurance, You Don’t Need Burial Insurance
Many people believe that if they already have life insurance, burial insurance is unnecessary. While it’s true that life insurance policies can cover funeral expenses, burial insurance serves a different purpose. Traditional life insurance policies often come with larger coverage amounts and are intended to cover a wide range of financial needs, such as paying off mortgages or supporting loved ones after you pass away.
Burial insurance, on the other hand, is specifically designed to cover funeral and burial costs. It provides a smaller, more affordable policy to ensure that your funeral expenses are paid for without reducing the funds intended for your beneficiaries. Additionally, burial insurance payouts are typically quicker, ensuring that your loved ones have immediate access to funds when they need them most.
Myth 3: Burial Insurance Requires a Medical Exam
Another myth is that you must undergo a medical exam to qualify for burial insurance, which deters people with pre-existing conditions from applying. However, most burial insurance policies do not require a medical exam. Instead, there are simplified issue policies, which only require you to answer a few health-related questions. Additionally, guaranteed acceptance burial insurance policies allow you to qualify without answering any medical questions or undergoing an exam, making them accessible to individuals with various health conditions.
While it’s true that health factors may influence premium rates, burial insurance is designed to be more inclusive than traditional life insurance, making it easier for individuals with medical conditions to secure coverage.
Myth 4: Burial Insurance Doesn’t Provide Enough Coverage
Some people believe that burial insurance won’t provide enough coverage to meet their needs. However, burial insurance is specifically designed to cover the costs associated with end-of-life expenses, including funeral services, burial or cremation, and other related costs. With the average funeral costing between $7,000 and $12,000, most burial insurance policies offer coverage ranging from $5,000 to $25,000, which is more than enough to handle these expenses.
For those concerned about additional costs, burial insurance can be combined with other life insurance policies to ensure comprehensive coverage. The flexibility of burial insurance allows individuals to choose coverage amounts that suit their specific financial needs.
Myth 5: You Don’t Need Burial Insurance If You Have Savings
While it’s possible to use your savings to pay for funeral expenses, relying solely on savings can be risky. Unexpected expenses can arise, or savings may be depleted due to medical bills, long-term care, or other financial obligations. Additionally, funeral costs often need to be paid upfront, which can put a strain on your loved ones if funds are not readily available.
Burial insurance provides guaranteed funds that are specifically earmarked for end-of-life expenses, ensuring that your family does not have to dip into their savings or take on debt to cover your funeral. It also helps preserve your savings for other purposes, such as passing it down to your loved ones or covering other financial needs.
Myth 6: The Application Process for Burial Insurance Is Complicated
Some people assume that applying for burial insurance is a lengthy and complicated process. In reality, applying for burial insurance is much simpler than applying for traditional life insurance. Most burial insurance policies have a straightforward application process, and many insurers offer online or over-the-phone applications, which can be completed in a matter of minutes.
Simplified issue and guaranteed acceptance burial insurance policies do not require medical exams, and approval can often be granted within a few days. The simplicity of the application process makes burial insurance an attractive option for individuals seeking quick and hassle-free coverage.
Myth 7: Burial Insurance Is Expensive
Another common myth is that burial insurance is expensive and unaffordable. In truth, burial insurance is designed to be affordable, especially when compared to other types of life insurance. Since the coverage amounts are smaller, the premiums are much lower than traditional life insurance policies.
Premiums for burial insurance vary based on factors such as age, health status, and coverage amount, but they are generally affordable for most individuals. Additionally, burial insurance premiums remain level, meaning that your payments will not increase over time, providing long-term affordability and predictability.
Myth 8: Burial Insurance Benefits Are Taxable
Some people worry that the payout from burial insurance will be taxed, reducing the amount available to their loved ones. Fortunately, burial insurance payouts are not considered taxable income. When the policyholder passes away, the full death benefit is paid to the beneficiary tax-free, ensuring that the money can be used for funeral expenses and other financial obligations without deductions.
This tax-free benefit offers peace of mind, knowing that your loved ones will receive the full amount they need to cover your end-of-life expenses.
How We Can Help
At Policy Ocean, we understand that misconceptions about burial insurance can lead to confusion and hesitation. Our goal is to provide clarity and help you find the right policy to meet your needs. We specialize in comparing rates from various insurers, ensuring that you get the most affordable and comprehensive burial insurance coverage available. Whether you’re looking for simplified issue, guaranteed acceptance, or graded benefit policies, we’re here to guide you through the process.
For personalized assistance and to compare burial insurance options, contact Policy Ocean today. Let us help you secure the financial peace of mind that burial insurance provides for you and your loved ones.
