Burial insurance
Do you want to be laid in a casket lined with velvet after your death? Would you prefer to go to your grave in blue satin? Have you already decided where would you rest in peace and what type of funeral service would be held?
Then a burial insurance policy is exactly you require to fulfill your wishes! This funeral or burial insurance will let you pick and pay for anything and everything in advance, from the flowers at the service to the plot of your burial!
Sounds appalling? May be! But it's not irrational at all! With the funeral expenses mounting, burial insurance is the call of the day!
What is Funeral/ Burial Insurance?
Funeral or burial insurance also referred to as "preneed insurance" covers all your funeral overheads including the products and services. By preplanning the minutiae of your funeral and paying for them beforehand, you can have the memorial service of your choice. Thus the mourners can grief and need not worry about the funeral costs.
While other types of insurances like accident insurance, theft insurance, life insurance and et al focuses on the financial strategy of "what if", the preneed insurance or burial insurance concentrates on the subject of ?when?. People buy it more for their personal satisfaction rather than financial advantages.
The coverage alternatives are determined by the tastes of individuals. There is no archetypal insurance plan as such as "preplanning of one's own funeral" is distinctly a personal choice.
As these polices are absolutely individualized you can include almost everything in them for except some cases where the amount of funeral expenses are specified. You can select the services and products that you would prefer and the funeral director or insurance agent will write the policy covering the particulars.
One of the biggest and reliable burial insurance companies in USA is the Monumental Life. Other renowned preneed insurance companies are Forethought Life Insurance Company and Life Insurers Council.
What Products and Services can you pre-purchase?
The following are the products and services that you can purchase beforehand-
- A Coffin/Casket
- Grave marker
- Grave Liner or Burial Vault
- Flowers at the Service
- Funeral Vehicles
- The Burial Plot
- Cremation
- Digging and filling the grave
- Embalming (if required)
Who are the actual buyers?
Bruce Dalzell, the President of Life Insurers Council (a trade association for the Funeral Insurance) says that these days the senior citizens are independent enough and a majority of them indulge in such expenses. Moreover they don?t want to overburden their dear ones with their funeral expenditure!
Why the need of Funeral/ Burial Insurance?
People are prepaying and preplanning their final arrangements much ahead because of the following reasons-
- Increase in Funeral Expenses- The NFDA(National Funeral Directors Association) states that since the last thirty years the interests of the consumers in funeral preplanning is gradually growing. The recent trend is to prefund these rites.
The AARP (American Association of Retired Persons) says that the funeral outlays have really gone up these days. The average expenditure for an adult funeral varies from $4,500 to $5,500. About one-third of $10,000 is spent solely on the coffin and $2,400 is used for under-ground entombment. Hence the largest number of burial insurance polices are bought by the elderly Americans.
- Less Reliance in Trusts- In the past, a certain sum of money was set aside in the form of trusts for meeting funeral expenses. However people couldn?t rely much on these trusts as tax liabilities were involved. Hence the burial insurance policies became much popular.
The Debate
Apparently buying a burial insurance policy looks like a simple purchase.
But of late there have been much controversy and rumors within this industry. Particular allegations have been raised that the aged people have been fooled and made to overpay in premiums than what is actually obtainable in the returns. So Florida and other states are aiming to prohibit such policies.
Tips for buying Funeral/Burial Insurance
Ensure the following before buying a burial policy -
Check out the laws on burial insurance of your state.
Find out the amount of plan value that is obtainable in death benefits.
Before buying any burial insurance policy make sure that the license of the company, agent and funeral director is authenticated.
Ensure that the funeral arrangements can be rearranged at any funeral home at any time. (For example, when you move to some other place)
The site of the grave should be spelled out by row, plot and section.
The burial insurance policy should state in details what kind of outer burial urn/container and marker have you bought.
Check if all costs including the cost of digging, filling and marker-installation are incorporated within the cost of the plot.
Enquire what happens if the cemetery of your choice runs out of burial space or its ownership is changed.
Know what options you have if the cemetery of your choice runs out of money and fail to pay on your arrangements.
Check out the contingencies if in any case the objects which you have chosen are not available at the funeral time.
Make certain that the funeral policy is received by you in a timely manner.
Ensure that you receive one statement (at least) with the details of your account's status every year.
Acquire a thorough knowledge about everything and also enquire what may happen if you want to cancel your policy.
So after buying a burial insurance policy keep your worries at bay as you will have your funeral, exactly the way you want it to happen!
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