As people have become more aware of the high costs of funerals, they have started considering options like buying a funeral plan.
The number of burial insurance policies being sold in the next five years is expected to grow from 2 million to 4 million. This increase in popularity may be due to the rising cost of funeral services and a growing sentiment that death can happen at any time.
But how to get the best insurance quote? Gary P. Cubeta, founder of Insurance for Final Expense, states that several factors determine the right final insurance quote to cover your after-death expenses.
So, if you are planning to buy final expense insurance, it's always a good idea to be familiar with the detrimental factors to make the most of it.
What's the Purpose of Funeral Insurance?
Funeral insurance is a type of life insurance that covers the costs of your funeral and burial.
Funeral insurance is not just about covering the cost of the funeral itself. It also covers expenses such as transportation to the cemetery, burial plots, and headstones or memorials. Funeral insurance can be used in conjunction with a traditional life insurance policy, which may cover living expenses should the insured person become disabled or pass away unexpectedly.
Burial insurance provides a lump sum payment for funeral costs when families most need it. The policy helps lessen financial stress on grieving family members by covering a death-related expense that life insurance may not cover.
Factors That Affect Final Expense Insurance Coverage
Most people don't like to think about their final expenses, but it's a necessity. Many considerations must be made before buying final expense insurance.
Income and Age Factor
Your age and the amount of income you have impact the final expense insurance quote.
Income and age are two factors that can affect how much a person pays for a final expense plan. Income affects how much premiums will be because people with higher incomes typically pay more than those with lower incomes.
Age can affect how much someone pays for coverage because older people pay higher premiums than younger ones since they are at greater risk for medical problems and more likely to use health care.
Health Status of The Insured
Insurance companies use the insured's health status to determine what type of coverage you are eligible for. If you have a long history of maintaining good health, you may qualify for better rates than if you have an account of chronic illnesses or are older.
There are two ways of establishing the health status of an insured person.
- First, the company can accept a physician's statement that lists all the medical conditions of the insured person, such as high blood pressure, diabetes, or stroke.
- The second is to have an in-person examination by a qualified physician chosen by the company.
Number of Dependents
Dependents are people who rely on the insured for financial support. The larger your family, the more likely it is that they will need to depend on you financially, and so this will increase the cost of your final expense insurance quote.
Gary P. Cubeta of Insurance for Final Expense suggests that the funeral insurance quote can be reduced by adding fewer dependents or increasing your deductible. For example, if you have a spouse and two children on your final expense plan, your monthly premiums would be higher than if you had only one child.
Types of Funeral Insurance Plans Available Today
Funeral planning is a difficult task that requires financing. The cost of a funeral varies from $7,000 to $10,000. An average person spends around two years of their salary on funeral expenses. The cheapest way to pay for a funeral is through an insurance policy.
Types of funeral insurance plans available today:
- Funeral Benefits Plan
The insurance company pays the total cost of the funeral service and ceremony up to a predetermined limit. This type without the need for any additional life insurance coverage.
- Prepaid Funerals
This type provides you with an affordable payment option for all future funerals in advance or instalments over time.
- Funeral Only Plan
The insurer pays the cost of your funeral up to a predetermined limit, but not other services such as medical expenses.
In addition to all the financial considerations, it's also important to ask yourself what matters most in your life and then make sure that your intentions are reflected in your choice for funeral coverage.
The best way to find a good deal on funeral insurance quotes would be through comparison-shopping on different sites. It will allow you to compare prices and policies before you commit to one provider.
Hannah Gilbert is a freelance writer who offers ghostwriting, copywriting, and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.