What Options Do You Have When Buying Final Expense Insurance?

When you apply for burial insurance, it means you are ready to take control of how you want to leave this world. You won’t have to depend on your beneficiaries to provide for your final rites. You can decide how your burial and funeral rites would be arranged.
More and more senior citizens are applying for burial insurance because they feel good about setting their affairs in order till the last detail. The beneficiary has to follow the instructions regarding the funeral. Articles by Gary P. Cubeta from Insurance for final expenses help you find out more about this type of insurance policies from providers like AARP final expense insurance.
Here are some of the options that one can pick from while choosing burial insurance.
  1. Standard Burial Insurance
This insurance is offered by many insurance providers, including some life insurance companies. It will help you to set aside funds when you pay your premiums. On your death, the beneficiary will receive the payout. With the money, they can pay for the burial costs like funeral home services, memorial services, transportation costs, paying for the casket, flowers, making a tombstone, and all other related expenses.
After taking care of the funeral expenses, the remaining amount can also pay off any debts that the deceased might have had, unpaid medical bills, or mortgage payments. This type of insurance can be purchased by the elderly without going through any medical examinations. All they have to do to qualify for the insurance is to answer specific basic questions about their health and lifestyle.
  1. Pre-Need Funeral Insurance
This insurance also takes care of the final expenses after one has passed away. However, unlike standard burial insurance, the payout from this insurance goes directly to a funeral home instead of being handed over to a beneficiary. Many insurance service providers can help you get this insurance, and individual funeral homes can provide you with this service. The money is paid to the funeral home almost immediately after the person’s death.
This kind of insurance is useful if you want to avoid higher costs in the future. It can help you save money because you are basically paying for the services at present, and even if the costs increase later, the funeral home will still respect your budget and work within the money set aside. However, if you have taken a plan for a higher amount and your funeral costs become cheaper in the future, your beneficiary will not receive the difference.
You can also choose between the various kinds of premiums for burial insurance.
  • Stepped Premium
With this policy, you have to renew your insurance each year. You pay lower premiums at first, but the amount increases with age. Your beneficiary will get the full amount no matter when you die after you have started paying your premiums. However, at any time you wish to discontinue and decide not to renew your insurance, you are at perfect liberty to do so.
  • Leveled Premiums
With this kind of policy, your premiums are locked for life. You might have to pay slightly higher premiums, but they will never increase, no matter how expensive things get otherwise. You will pay the same premium as long as you live.
  • Capped Premiums
With this kind of premium, you don’t have to keep on paying premiums anymore, although your coverage will continue once you have reached a specific pre-decided limit. The limit could be set as per your payout amount or your age.
Each insurance provider brings some of their perks and benefits to the table when they sell insurance. Some providers, like AARP final expense insurance, have excellent rates. A comparison between the various providers and their premiums rates will help you decide which plan is the best suited.
All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.