Here are some reasons why people in Maryland might consider purchasing burial expense insurance:
Financial Planning: Planning for end-of-life expenses is a responsible financial decision. By purchasing burial expense insurance, individuals can ensure that their funeral and burial costs are covered, relieving their loved ones from the financial burden.
Protecting Loved Ones: When someone passes away, their family members or loved ones are often left with the responsibility of arranging and paying for funeral services. Burial expense insurance helps alleviate this burden by providing funds to cover funeral costs, which can be quite significant.
Fixed Premiums: Burial expense insurance policies typically have fixed premiums, meaning the premium amount remains the same throughout the policy's duration. This predictability allows individuals to budget and plan for their insurance premiums more effectively.
Ease of Qualification: Burial expense insurance policies often have simplified underwriting processes, making them more accessible to individuals who may have difficulty qualifying for traditional life insurance policies due to health issues or age. Some policies may not require a medical exam, and acceptance is typically guaranteed for applicants within a certain age range.
Now, let's discuss how burial expense insurance works:
Policy Purchase: To obtain burial expense insurance, an individual must apply to an insurance company and purchase a policy. The policyholder pays regular premiums (monthly, quarterly, or annually) to keep the policy in force.
Policy Coverage: The policyholder selects a coverage amount based on their anticipated funeral and burial expenses. The coverage amount can range from a few thousand dollars to tens of thousands of dollars, depending on the individual's preferences and the type of services they wish to have.
Beneficiary Designation: The policyholder designates one or more beneficiaries who will receive the insurance proceeds upon their death. Typically, beneficiaries are family members, friends, or funeral homes.
Claim Process: When the policyholder passes away, the designated beneficiary must contact the insurance company and initiate the claims process. They need to provide the necessary documentation, such as a death certificate, to verify the death.
Benefit Disbursement: Once the insurance company receives the required documentation, they process the claim and disburse the insurance proceeds to the designated beneficiary. The beneficiary can then use the funds to cover funeral and burial expenses, including costs associated with the casket, cemetery plot, memorial service, transportation, and other related expenses.
It's important to note that burial expense insurance is specifically designed to cover funeral and burial expenses and does not accumulate cash value like some other life insurance policies. The primary purpose is to provide financial assistance to cover immediate end-of-life expenses.
Get a burial life insurance quote.