None of us like to consider our own mortality, but we all have to go at some point. The rising cost of cremation and funeral expenses means that you may need to take action to ensure that there is sufficient money set aside to prevent your family being left with a large bill from a funeral home.
A burial life insurance policy ensures that there will be sufficient money in your estate to cover your final resting expenses when you're no longer with us. The sooner you start to pay the premiums, the less expensive it will be.
Funeral Insurance Plan Provides Help with Cremation & Funeral Expenses
Don't rely on the state as an alternative to burial insurance as payment has been capped at a very modest level since 2003. Aside from the fact that even the most basic funeral now costs £1,515, you're unlikely to qualify for any help and assistance unless you're on state benefits, such as pension credits.
The NAFD stated that: "The government's social fund grant, available to the poorest bereaved families who qualify, is inadequate for even the simplest ceremony." In other words, you're family is going to be left with a shortfall that will need to be made up elsewhere.
Who Can Take Out Burial Life Insurance?
A final expense life insurance policy is an option for both men and women who are aged between 50 and 80. Provided that you fall into this age range, you're guaranteed to be accepted. You'll pay the insurer a monthly payment for the remainder of your life or until you've paid sufficient premiums.
All death insurance policies specify that you'll need to survive for at least 1 or 2 years before a claim can be lodged. If you don't survive for this timeframe, the policy provides a rebate that is at least equivalent to the cumulative value of the premiums you've paid into the plan.
What's the Cost of Final Expense Life Insurance?
Women live for longer than men. For this reason, you'll normally find that it is up to 25% cheaper to take out burial life insurance for a woman than it is for a man. The older you are at the commencement of the policy, the higher your premiums will be as you're statistically more likely to pass away.
A 73-year-old woman can take out £4,635 of burial insurance from Liverpool Victoria (LV) for just £38 per month. However, the same level of coverage for a man costs £47 per month. Always trawl the market for the best deal as rates vary considerably between different insurers.
Do You Need Burial Insurance?
If you have savings set aside or your family are willing cover your final resting expenses, you probably don't need to take out burial life insurance. If your family will struggle to meet these costs you should seriously consider taking out a funeral insurance plan.
The earlier you start to make payments, the more affordable the premiums will be. If you fail to pay the premium, coverage will stop immediately. Unlike other whole life insurance policies that you may have taken out, death insurance has no cash-in value because there is no investment element.
Sources
Smithers, Rebecca. (8 May, 2010). "Funeral costs jump almost 50%" The Guardian.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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