Burial Insurance Vs Life Insurance – What’s The Difference?
Posted in Final Expense Burial Insurance last updated on February 9, 2023
Burial Insurance is a type of whole life insurance designed to cover the final expenses like the funeral and burial or cremation. There are no medical exams for burial insurance and you can get approved in minutes.
But is burial insurance right for you?
In this article we are going to go over all of the different types of life insurance for seniors, how to know if burial insurance is right for you, sample prices, and the best companies for seniors.
If you simply want quotes fill out our quote form or give us a call and we will find the lowest pricing for you.
Table Of Contents
- Is Burial Insurance The Same Thing As Life Insurance?
- What Are The Benefits Of Burial Insurance?
- Can Life Insurance Be Used For Burial?
- Does The Beneficiary Have To Use The Funds For The Funeral?
- Can You Use A Deceased Person’s Bank Account To Pay For Funeral?
- How Much Does Burial Insurance Cost?
- Different Types Of Life Insurance For Seniors
- Best Burial Insurance For Seniors
Is Burial Insurance The Same Thing As Life Insurance?
Yes. Burial insurance is a type of whole life insurance product. It’s only called burial insurance because it’s designed for those type of expenses. Other names for this product are called funeral insurance and final expense insurance. It is all the same product under different names depending on the company.
What Are The Benefits Of Burial Insurance?
A few benefits of burial insurance…
- Monthly payments are locked in once you start it
- Death benefit will never go down
- Most people qualify for immediate coverage with no waiting period
- Will never expire
- Guaranteed payout no matter how you die
- 100% tax free payout to your beneficiary
You don’t want to get a policy with a company that does not adhere to the above benefits. Some companies only sell burial insurance with waiting periods at higher monthly payments. You can save a lot of money every year for the same amount of coverage by letting us shop the market for you.
Can Life Insurance Be Used For Burial?
If you have a life insurance policy of some kind already, your beneficiary can absolutely use the funds from that policy for whatever they want, including the burial. While burial insurance plans are designed specifically for this purpose, other types of life insurance can fill this need as well.
Keep in mind that burial insurance policies pay out usually within 48 hours after death, while other types of life insurance can take weeks or months to pay out. While they can help your loved ones pay for the funeral and burial, if you want something to get to them fast burial insurance is the best option for that.
Does The Beneficiary Of A Life Insurance Policy Have To Pay For The Funeral?
Your beneficiary is under no obligation to pay for any of the final expenses if they don’t want to. The insurance company only cares about paying out the money to the beneficiary and closing the file. That’s why it’s important to select a beneficiary you trust to do right by the money.
If there is any money left over from the life insurance policy after the funeral and burial or cremation, your beneficiary keeps the difference.
Can You Use A Deceased Person’s Bank Account To Pay For The Funeral?
Banks can sometimes refuse to release any money to the family from the bank account until probate is granted. This depends on the bank that you use. It’s important to set up something with your bank beforehand if you’re going to do this.
How Much Does Burial Insurance Cost?
The price of burial insurance depends on your age, health conditions, and lifestyle like smoking or not. It also can vary greatly company to company. You can fill out our quote form to get accurate quotes for different coverage amounts, but here are some sample quotes from a great company, Mutual Of Omaha.
| Age | Male $10,000 | Female $10,000 | Male $20,000 | Female $20,000 |
|---|---|---|---|---|
| 50 | $30.68 | $24.31 | $58.15 | $45.41 |
| 60 | $43.76 | $32.87 | $84.32 | $62.53 |
| 70 | $74.61 | $53.24 | $146.01 | $103.28 |
| 80 | $139.73 | $98.43 | $276.26 | $193.66 |
Different Types Of Life Insurance For Seniors
There are plenty of other options for seniors for life insurance. If you want free quotes from all of the top companies for any of the below insurance products give us a call.
Term Life Insurance
Term life insurance lasts only for a set amount of years, after which it expires and you have no coverage at all. For this reason, term life insurance is very cheap compared to burial insurance or other types of whole life insurance, which have a guaranteed payout upon death.
Accidental Death
Accidental death insurance is also very cheap compared to burial insurance but only pays out in the event of an accident. Health issues, like heart attacks, do not constitute an accident. 99% of the time people do not die from accidents. Some accidental death policies last for life and some expire at a certain age.
Whole Life
While burial insurance is a type of whole life insurance, there is a maximum amount of burial insurance you can get. Larger whole life plans such as 100k are available to seniors, but can be very expensive depending on your age.
What Is The Best Burial Insurance For Seniors?
Click here to read our full guide on the best burial insurance companies for seniors.
The best burial insurance company for you depends on many factors. What is your age? How much in coverage are you looking for? Do you have any significant health conditions?
We at Seniors Mutual are an independent agency that can find the best burial insurance prices for you in the market. We do not care which company you go with.
A company that is best for you might not be the best for your spouse or loved one in the family. It’s important to work with an independent agency to find the best prices possible. The difference can be a savings of hundreds of dollars per year!
If you want quotes you can see some quickly by filling out our quote form or giving us a call. If you are ready to move forward with a burial insurance policy we can get you approved with the lowest priced company for you in minutes! We look forward to working with you.
