Burial insurance works similar to other types of life insurance in that it pays out a fixed sum of money upon the policyholder’s death. The amount of the benefit will depend on the type of policy chosen and the coverage limits purchased. The two primary types of burial insurance are whole life policies and term life policies. With a whole life policy, the owner of the policy pays a monthly premium and is covered until their death, while a term life policy only covers the owner for a certain amount of time; typically 1, 5, 10, 15 or 20 years. The main difference between the two is that whole life policies provide the policyholder with a guaranteed benefit and provide funds that can be used for any purpose, whereas a term life policy only pays out if the policyholder dies within the policy term.
One great benefit of burial insurance is that it pays out very quickly, typically within 48 hours of the policyholder’s death. This means that the family of the deceased will be able to lay their loved one to rest without having to worry about the cost of a funeral or other associated expenses. It also takes away the burden of having to ask for help from friends and family when it comes to covering these costs.
Another major benefit is that burial insurance policies are relatively easy to obtain and are available to people of all health status and incomes. They are typically also more affordable than traditional life insurance, so they are often a good choice for those who cannot or do not want to purchase a much higher amount of life insurance coverage. Get a burial insurance quote.