You get bombarded by them constantly.
They'reon the TV. They're on the radio. Almost every minute on any platform with advertising is filled with them. There's just no escaping them, and honestly,that's a good thing. They are quite important.
We are, of course, talking aboutinsurance ads. As annoying as each individual commercial may be, we do advisethat you have some insurance for the various aspects of your life (Especiallyif you drive a car. It's very illegal to do so without auto insurance!). Nevertheless, most people are well informed about the various types you canpurchase for yourself. There's home, auto, pet, and life insurance, just toname a few. And while most people are familiar with these very generic types ofinsurance, it's the nitty gritty details that may confuse us all.Unfortunately, we cannot explain the whole spectrum of insurance policies toyou. However, we can help you with the subjects we do know plenty about: Life vs. Burial Insurance. It's important to know the difference. Continuereading on to learn more.
LifeInsurance
In a way that dementia is an umbrella term forAlzheimer's (the two terms are not interchangeable), so is Life Insurance withBurial Insurance. Alzheimer's is just one type of dementia, while BurialInsurance is just one type of Life Insurance. However, we should back up andexplain Life Insurance first.
To qualify for Life Insurance, you may have totake a medical exam. The direct results of those tests may dictate what rateyou qualify for. It's just another reason to stay in good health! Individualswith better medical records tend to get better rates. Once you are approved,you agree to pay a preset amount of money periodically to the insurancecompany.
You might be thinking, "Why would I pay money to an insurance company who'sonly going to payout after I die?" Well, most of us realize the importance oflife insurance to help our loved ones continue covering their regular expensesin the event of our passing. Life is expensive, there's no doubt about it. Andthis could be doubly disastrous to your loved one if they depended on some ofyour income to pay the bills. The purpose of Life Insurance is to ensure thatthere's enough money to settle outstanding debts and continue to provide foryour family's needs. That's not such a bad thing, is it?
It's considered a long-term financial securitymeasure and there is a wide spectrum of different options, depending on yourneeds. When you're in the market for insurance policies to protect yourbeneficiaries, you need to make sure you understand what you're shopping forand what your purchase options are.
Popular types of life insurance include Term Life and Whole Life Insurance. Thedifference being Term Life has a set limit of years that it can cover you, usually with limits of 15-to-30 years. Whole Life Insurance does not expire. Itcovers you up until your last day.
BurialInsurance
One key difference between Burial Insurance and Life Insurance is that a Burial Insurance policy does not require amedical exam. To get an approval, you just need to answer a few medicalquestions and clarify your medication history. Once you qualify, most insurancecompanies can issue your policy in just a few days. Once in force, a Burial Insurance policy can pay your funeral expenses quickly. It'll cover costs thatmay include your burial plot, cemetery fees, grave marker, casket, cremation,embalming, flowers, hearse, and other final expenses. In fact, some BurialInsurance policies have the ability to pay benefits in as fast as 24 hourswithout a death certificate. This is the main reason why most funeral homesaccept it as direct payment without additional requirements. This can be agreat advantage when covering your death-related expenses.
Burial Insurance is a tool you can use to helpyour loved ones pay for your final expenses. It is considered a type of Life Insurance policy, but it offers a smaller benefit amount than traditional term Life Insurance because its focus is smaller. As with all insurance, the cost isbased on your age and health when you start.
When you take out a Burial Insurance policy,you intend to shield your loved ones from the complications of paying for yourfinal expenses. Regardless of how you intend to be celebrated, you'll want somefunds set aside for the final arrangements. This type of policy eliminates theneed for loved ones to pay these expenses out-of-pocket. Unlike traditionalterm, whole life, and universal life policies, Burial Insurance is specificallydesigned to cover one-time and short-term expenses. It isn't meant to replaceincome or cover large expenses like purchasing a home or paying for college. Itisn't a type of retirement plan or investment either.
Its primary use is covering funeral costs, butyour beneficiary can use it for any end-of-life expenses like unpaid medicalbills, outstanding credit card debt, or various bills accrued in the month ofyour passing (phone bill, utility bills, car payment, etc.).
ResearchBefore You Decide
Before making a final decision on Burial Insurance vs. Life Insurance, or both, research it first. Not all companies provide you with the same typeof policies. If you're only looking to coverthe basic costs of your loved one or self, then consider choosing Burial Insurance. However, if you'd like them to have extra money to cover expensesoutside of the funeral arrangements, select the Life Insurance policy thatworks best for them. Familiarizeyourself with each detail to verify that this is the correct insurance policy foryou and your beneficiaries. Not understanding all of the details ahead of timecould cost your surviving loved ones much aggravation and more grief. Beingfully prepared will make the entire process of planning your funeral mucheasier to deal with. Ultimately, you may want to consider purchasing both typesof policies to provide the ideal protection to your family.
