There are no certainties in life and, if you pass away suddenly, your family will be left to grapple with the shock of your passing as well as the many expenses that usually arise when a person dies. If you had no savings or insurance and your family is not in a financially stable position, they might find themselves in dire straits.
Even if you did have enough savings, unless you had a joint account, the bank will freeze your assets as part of your estate and release the money only after they get a copy of your death certificate. The non-availability of ready funds could prove problematic for meeting immediate expense requirements and even lead to familial strife over the issue of who is to pay.
Rather than risk that in the future, it will help to get a burial insurance policy now.
What is a Burial Insurance Policy?
A burial insurance policy is a life insurance policy that is meant to pay for all your final expenses. Most of us don’t consider this aspect when we get traditional insurance policies, but, given that the costs of funerals and burials are rising in the upward neighborhood of $10,000-$20,000, it is something we shouldn’t overlook.
The main benefit of having burial insurance in Texas is that it pays for the costs arising from the insurer’s death. So, your family will not incur any extra out-of-pocket expense in arranging for your funeral and burial. They may also be able to use part of the insurance payment to pay off any outstanding debts that you might have left behind.
Of course, the amount of money the deceased person’s family or beneficiaries will receive depends on the premium amount that he or she had paid during the term of the burial insurance plan.
Types of Burial Insurance Plans
Unlike traditional life insurance plans that offer coverage of $50,000 and up, burial insurance plans generally cap at $50,000. That is because the insurance is only to cover your funeral expenses, not to provide your beneficiaries with an income.
Before you buy burial insurance in Texas, you should familiarize yourself with the following terms:
Simplified Issue Policy
The insurance will determine if they should underwrite you a policy depending on your medical history. You don’t need to get a medical check-up, but they may turn you down if you smoke or participate in risky endeavors.
Guaranteed Issue Policy
They will underwrite you a policy regardless of your medical history but will charge you a higher premium.
Level Benefit Policy
The grant of this policy depends on your medical history, and your family will receive the full death benefits from the date that the company issued the policy.
Modified Benefit Policy
Your beneficiaries would receive the full death benefits only if the policy had been in place for 36 months before your natural demise. Otherwise, they will only get a limited amount. In the case of your accidental death, however, they will receive full benefits, regardless of how long the policy was in effect.
Term Life Insurance
If you pass away during the term of the plan, there will be a policy payout. However, if you are alive when the policy expires, you will need to take out a new term life burial insurance. Generally, insurance companies charge a higher premium by age. So, the older you are, the more you will have to pay to the insurance company.
Whole Life Insurance
If you get a whole life burial insurance, it will provide you with insurance coverage for the entirety of your life.
the Best Burial Insurance Policy Available in the MarketAs more people realize
the necessity of getting burial insurance, these policies are becoming big
business for insurance companies. To stay competitive, they offer different
deals to make their policies seem more financially viable to customers.
You can make this to work in your favor. Instead of buying a burial insurance policy from the first company you encounter, get in touch with all the local insurance companies and get their policy quotes. You can then compare their prices and services, and figure out which company is offering the best burial insurance in Texas.