Why Should You Research About Burial Insurance Products Before Actually Buying them?

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Burial insurance is usually bought by the insured to pay for their funeral or burial costs. The burial insurance product range in the market is extensive. With intensive marketing campaigns, agency advertisements, choosing the right insurance product can be an overwhelming task.

For example, you can read through the Foresters Final Expense Insurance review by Gary P. Cubeta of Insurance for Final Expense. In this review, you will know Forester’s offers different levels of benefits under burial insurance. But, how do you pick the right plan for your requirement?

What is Burial Insurance?

Burial Insurance is specifically bought to cover the expenses involved with a funeral, the reason why it is popularly known as final expense insurance. According to the Insurance Barometer Study by LIMRA, 84% of people buy life insurance products as a means to take care of their final expenses.

The usual coverage offered under this category of insurance product is around $5000 to $30,000. The application process for burial insurance is pretty straightforward. The premium costs may be higher as the insurers offer coverage with no medical exam.

Reasons Why You Should Research About Burial Insurance Products

Waiting Period

There is typically a two-year waiting period involved with a burial insurance policy. This means that if the insured person passes away before two years from the policy issue date, the beneficiaries do not receive the full death benefit.

Several insurance products come with a no waiting period clause. Your coverage starts the day you make the first payment. But the premium rates for these policies will be comparatively high. If you buy a policy with a waiting period, then understand the different levels of benefits offered.

Medical Conditions

Burial Insurance products do not require applicants to undergo any medical examinations. You may have to answer specific health questions, which give the insurers an idea of the risk they will be taking. Insurers also have a list of medical conditions they will cover and not cover.

For example, Foresters Final Expense covers below ailments, which are generally not covered by other insurers:

  • Depression
  • High Cholesterol
  • Multiple Sclerosis

The issue with no medical examination is that if you are in decent health and can pass an evaluation, you get clubbed with people with ailments. Burial insurance is appropriate for people with pre-existing medical conditions.

Benefit Type

If you do buy a policy with a waiting period and the insured passes away before the completion of the waiting period, then below are the common types of benefits offered:  

  • Graded
  • Level
  • Modified

 Depending on the insurer, the beneficiary will receive the premium amount and an additional percentage. For example, with graded benefit, one might receive 30% of the assured amount if the insured passes away in the first year, 70% in the second year. Or one might be paid back premium collected till the death of the insured plus an additional 10% in modified benefit.

Buying a burial insurance plan can save our loved ones from the burden of paying for an exorbitant funeral. Thus, it is essential you invest time into researching products before signing on the dotted line. You can read through the Foresters Final Expense review to know what to expect from burial insurance.