How Much Burial Insurance Do I Need?
Determining the total monetary value of your burial insurance policy will vary depending on a number of personal factors. Typically, burial insurance companies offer policies starting at $1,000 in value, and generally max out at $25,000. Consumers can purchase a policy in any amount between $1,000 and $25,000 in increments of $1,000, but other options are available. The best way to determine the most accurate policy for your needs is to speak with a licensed insurance agent that can personalize a policy specifically for you. However, to get a basic idea of the amount of the burial insurance coverage that you will need, there are three basic steps:
- Step 1: Research the potential cost of your funeral expenses and determine your total financial need
- Step 2: Consider any personal or legal costs that will need to be paid, as well as any inheritance that you wish to leave with your family members
- Step 3: Combine the funeral costs and personal amounts to get a total coverage amount. Once you have totaled up the costs of your needs, compare policies from different companies to estimate the monthly cost to obtain that coverage
You will likely have many questions as you determine the costs of your final arrangements and personal needs, or may want help comparing companies to find a monthly premium that works well with your budget. We would love to hear from you and assist you in the process. Call 800-260-8919 to speak to a representative and get a free quote on a policy built specifically for you.
Step 1: Research Funeral Service Costs
Funeral related expenses often cost more than most people imagine. The basic needs for a funeral can add up quickly, and administrative costs and services provided by funeral homes can go overlooked when writing a budget for final expense needs.
Under the Funeral Rule, a law created in 1994, any providers of funeral services or products must provide an itemized list of all products and services they provide, as well as prices, before they attempt to sell them to you. This list is called a General Price List, or GPL, and will help you avoid paying extra for any services or products that you might not want or need. When shopping for funeral service items, be sure to ask your funeral home or service provider for a GPL to help you compare prices and determine the most accurate budget for your needs.
According to the National Funeral Directors Association 2012 report, the average funeral cost $7,323, however, everyone’s circumstances are different. To learn more about the specific costs involved visit our funeral costs page. This will help you decide which items you and your loved ones will prefer to have at your funeral service and get a detailed estimate on the total cost for your service. Keep in mind that burial laws vary by state, and not all states require you use each of these products
Of course, there are always situations that will cost more or less than others. Perhaps you live outside of a city in a rural area where land is more affordable. Similarly, you may be familiar with your local church and minister, who might be willing to officiate at your service for no charge. Regardless of where you reside, ask to see a GPL that will explain all costs, service fees, and additional charges in advance to help you budget appropriately.
Step 2: Consider Additional Costs – Personal, Legal, and Inheritance
In addition to covering the costs of basic products and services for a funeral, many people choose to purchase a policy that will cover any unexpected personal or legal financial issues that may arise after they pass away. Because a burial insurance policy fully matures upon the death of the policy holder, 100% of the value of the policy is passed to the beneficiary and can be used not only to pay for funeral expenses, but for other costs as well.
Many people do not consider the possibility of the loss of income upon the passing of a loved one. Any funds received from a burial insurance policy can be put towards paying for necessary items such as a house payment, utilities, or any other expenses that might be impacted due to the loss of income from the passing of a family member.
Similarly, legal counsel is sometimes needed to help mediate or oversee the dividing of assets that belonged to a loved one who has passed on, and this guidance comes at a steep cost. Money from a burial insurance policy can help cover the cost of any needed assistance from a legal professional.
Finally, many who are shopping for a final expense plan desire to leave financial assistance to their children, grandchildren, or other relatives in the form of an inheritance. Funds from a final expense policy can be used to provide these financial benefits to family members or loved ones.
Although everyone’s individual needs vary, it is usually a good rule of thumb to purchase a policy that provides a small amount more money than is needed for just your funeral costs, so as to not leave your family on the hook for any unexpected costs. Remember to keep these often forgotten costs in mind as you are determining how much burial insurance you need.
Step 3: Determine Your Needs and Compare Policies
Once you have made an itemized list of funeral service related needs, simply combine the total cost of these products and services with the amount you estimate you would like to leave with your family to cover other expenses.
- Funeral costs and fees + Additional expenses = Funeral insurance policy value needed
This total amount will give you a very good idea of how much burial insurance you will need to cover your financial obligations. Once you have a total amount that will cover all of your needs, you will want to shop around to compare rates and plans from different companies as monthly premiums, qualification requirements, and available policy amounts will vary by provider.
We have tried to make the shopping experience simple by providing free burial insurance quotes. To speak with a licensed professional who can help customize a policy that fits your needs and budget, fill out our form or call 800-260-8919 to get started immediately.
How Much Will Burial Insurance Cost?
Funeral insurance costs depend on your age and the amount of coverage that you desire. Generally speaking, the monthly premium ranges from $10-60, but can vary depending on tobacco use, health complications, and the location where you reside. Although there are a few factors that determine your monthly costs, burial insurance is still generally a more affordable than life insurance, in addition to being easier to qualify for. In addition to your monthly premium, there is usually a small annual service fee that is charged once a year.
We would love to help you build an accurate quote on a burial insurance policy that fits your specific needs. To speak with a licensed professional who can provide you with a free, no-obligation quote, call 800-260-8919 to get started.