Every person will face the expenses of death one day. When someone dies without leaving behind a large estate or burial insurance, the family suffers due to the expenses incurred from a funeral. Therefore, it is important to buy funeral insurance to protect the surviving family.
A good reason to buy funeral insurance is to cover the final expenses. The basic funeral costs, cemetery plots, grave markers and flowers can be expensive if funeral insurance is not available, and the funding for these funeral expenses can become a burden for the family members. Funeral costs have been increasing each year. Therefore, the need for burial insurance is extremely important to cover the cost of a funeral if someone does not want to leave behind unpaid debts for the family to pay.
Some funeral homes will offer individuals an opportunity to plan their own funerals. They will be able to make all of their final arrangements before their death, which enables them to know what their funeral expenses will cost. A traditional funeral will involve buying a casket, vault, obituary notices, flowers, limousines and other items. The funeral director will give the individuals a list of the prices for each detail of the pre-planned funeral. This method allows them to buy a policy that will be large enough to cover their death expenses. This prevents the surviving family from having to deal with the funeral details at a loved one’s death, and the pre-planned funeral will relieve stress from the family at a difficult time.
If the wage earner was to pass away, the financial debts could be overwhelming for the family. Medical bills, funeral expenses and regular debts may be left unpaid without the benefit of burial insurance. The unpaid debts could cause the family to lose a home or other necessities, since there might not be enough money to cover the extra financial obligations. Nobody wants to leave his or her family unprotected financially at his or her death. Therefore, securing funeral or burial insurance will be protecting the family against possible financial disaster.
Every person should prepare for the future by buying an adequate amount of burial or funeral insurance. Death is hard enough on the survivors without them having to suffer from the large debts of a funeral. Individuals should consider buying funeral insurance to show their loved ones that they care about their future needs.
Don’t settle for the first quote you get from an insurance broker or website. Take the time to compare policies among several companies. Some companies may offer discounts that others don’t, so it’s worth taking the time to get as much information about the policies as possible before committing to one.
Know your needs
Every person is different, with different levels of need when it comes to health insurance. A young, single, healthy person can get away with a less comprehensive policy than a family or even an older single person can. Will you need maternity benefits, have preexisting conditions, or special medical needs to take into consideration? While people with serious medical conditions may find coverage costs more, others with relatively good health can get very reasonably priced basic policies by knowing the right level of coverage to buy.
Choose your terms wisely
If you are between jobs or expect to be obtaining group insurance in the near future, a short term policy could be a great way to save money. By just covering the basics for a shorter period of time, you can reduce the amount of money that you spend on premiums. Of course, if you don’t know how long you’ll need the individual policy for, the insurance companies can help you with a longer-term policy, too.
Live a healthy lifestyle
Premiums are usually higher for people with serious medical conditions, those who are obese, and for smokers. By simply making some lifestyle changes, you can qualify for lower premiums with most companies. Plus, by exercising, eating right, and giving up tobacco you will feel better and be healthier, so it’s a win/win situation for you.
Prevention is important
Many basic policies offer coverage for preventive services such as checkups and immunizations for a very good reason; preventive medicine keeps you healthy and lowers you health care costs. Healthier people are less expensive to provide benefits for, so the savings are passed on in the form of lower premiums. Stay healthy and catch any illnesses before they become serious by scheduling regular checkups and get any recommended immunizations, including flu shots. You’ll feel better and have more money in your pockets for the effort.
Consider a higher deductible
If your employer offers a high deductible health insurance policy, you may want to consider signing up for it, especially if they provide a portion of your deductible in a Health Savings account. This can be a great way to get lower premiums and still have great benefits with a slightly higher deductible than usual.
Finally, Medicare Supplement Plan F includes coverage for any Medicare Part B excess costs. These costs occur when a doctor charges more than Medicare Part B reimburses. A doctor is permitted to charge 15 percent over Part B’s reimbursement. For example, if Medicare pays $100 for a visit, the doctor is allowed to ask you to pay up to $115. Medicare Supplement Plan F is one of the only plans that covers Medicare Part B excess costs.
In addition to the standard Medicare Supplement Plan F, there is also a high deductible version of the plan. While this plan has a higher deductible than other comparable plans, the premiums are lower. This plan is ideal for individuals who are in better health and wish to save money up front.
Overall, Medicare Supplement Plan F provides the best value for your money. It covers significant expenses that you would have to pay out-of-pocket on other plans. Plan F is the most popular Medigap plan for a reason–it provides you with substantial savings and peace of mind.
When you are looking at these two policies, it is important for you to know the difference. With life insurance, when you die, the person who is named as the beneficiary of your policy will receive a lump sum of money from the insurance company. They can use this money for any purpose. With burial insurance, the money from the insurance company is for covering the burial costs only. It goes to pay for the casket, the burial plot, the burial clothes, and funeral home costs.
Size of the Estate
Burial insurance is not for everyone. One of the factors that you have to look at when you are trying to decide whether you want to buy this type of policy is how big your estate is. If you are planning on leaving a sizable estate to your beneficiaries, then buying a burial insurance policy may not make sense. They can simply take a few thousand dollars out of the estate or the insurance payout and pay for the funeral. If the size of the estate is very small, then it might make sense to get a burial insurance policy.
Planning in Advance
If you are the type of person who likes to plan every detail out in advance, then it might make sense to purchase a burial insurance policy. You can work with the funeral home of your choice to figure out all of the details of your burial. At that point, the funeral home will be able to give you a costs for everything that you have selected. Then you can purchase a burial insurance policy to cover the costs of the process. This way, there are no question marks about what you want when you pass away. You also know that your loved ones won’t be burdened with paying for any of the funeral.
Buying burial insurance is a personal decision that you have to make based on your situation. If you decide to get a policy, make sure that you have a good idea of how much you’ll need.
Welcome to the site. I’m hoping to help guide you through any insurance questions you might have. I’ll be posting from time to time on questions and opportunities that I often see in my own business. However, if you have an insurance related question you would like an answer to, feel free to email me or leave a comment on one of the posts and I will try to answer it.
I would also always recommend that you consult the insurance professional you regularly work with before making any decisions based on any advice you might find here. I will try to keep my advice and tips fairly general, but each person and family’s financial situation and insurance needs are going to be different. Remember that what suits one individual might not be a good fit for another.