One of the many components of life insurance is burial coverage. While most people do not want to think about the costs associated with burial, it is a real factor to consider. Your loved ones will need to make these decisions if you do not do so. The key to remember is that planning in advance like this can reduce the stress and strain on your loved ones and provide them with the financial means to provide for these needs. Many times, the coverage in your life insurance plan can do just that.
What is It?
Burial coverage, also called final expense coverage in some policies, is a near immediate payment at the time of your death if you have an active whole life insurance plan. Some term life insurance plans may offer this coverage as well. Final expense coverage is often a fixed payment made at the time of your death to provide for your family’s immediate needs in making arrangements. This is often about $10,000, though the amount can vary. The funds are paid directly to the beneficiary. That person then uses the funds as he or she sees fit.
Why Obtain Burial Coverage?
Not all life insurance plans offer burial coverage. If your policy does not, you can often purchase a separate, additional level of coverage to meet these needs. Why should you do so?
- The premiums tend to be level throughout the time you have the life insurance plan in place (this may differ from one insurer to the next, but options for level premiums and coverage are often available).
- Your loved ones decide how the funds are used. You can choose a beneficiary who is willing and knowledgeable of your final wishes to make these decisions.
- You alleviate the financial strain of a burial, which can cost over $10,000.
Many times, the investment in final expenses coverage is affordable and it may be a part of your current whole life insurance policy. Take into consideration what this type of coverage could do for your family. It may be one of the best ways you can alleviate some of the stress at this time in their lives.
Review your policy with an agent. Call ECI Insurance Agency at (405) 373-2977 for more information on Oklahoma City life insurance.