For some aging adults, burial insurance and pre-need insurance can be considered for financial relief with end-of-life expenses.
Handling end-of-life expenses and arrangements isn’t easy or enjoyable, but it is necessary. Many aging adults need to turn their focus to these tasks in order to lower the burden on their loved ones and ensure that they have what they need lined up. One of the options available is burial insurance, but is it worth it?
What is Burial Insurance?
Burial insurance is usually a whole life insurance policy with a minor death benefit that is meant to help cover funeral expenses. With this policy, you name a beneficiary who can file a claim for the benefit—typically, these funds are then used to help pay for various funeral and burial expenses. These policies do not require extensive health exams, as their rates are generally determined by age and gender.
What are the benefits?
Burial insurance can benefit the elderly who are preparing for end-of-life accommodations. Some of these benefits include:
- Lowering the financial and mental burden on loved ones. Burial insurance is highly specialized and can be a good option if you don’t have another avenue of financial relief.
- Obtaining financial relief for end-of-life expenses even if you have health issues that may limit other policies.
- The financial aid goes directly to your beneficiary so they can use those funds as they see fit to cover any expenses that come up, both expected and unexpected.
What about Pre-Need Insurance?
Pre-need insurance and burial insurance are very similar, but they have a key difference. With burial insurance, you name a beneficiary who files a claim and receives the payout. With pre-need insurance, you contract with a funeral home of your choice and obtain highly specialized insurance that covers the specific services you want for your funeral. In this case, the funeral home receives the payout.
This can be a little bit easier on your loved ones due to the fact that they do not need to file a claim or handle arrangements. However, it also means that only services provided by the funeral home will be covered. Any other expenses that come up could fall to your loved ones if you don’t have any other financial assistance in place.
Is it worth it?
Whether burial or pre-need insurance is worth it really depends on your circumstances and situation. They do have their upsides, but they’re not the right choice for everyone.
One of the best things you can do to help yourself is speak to a trusted benefits advisor. They will help you go over how these policies may or may not help you so that you can make an informed decision. They might even know of better options if burial or pre-need insurance is not the right fit for you.
Contact Aging Benefits Advisory Today!
If you need help navigating the world of senior health insurance, our advisors at Aging Benefits Advisory are here to assist. Take advantage of our free consultation to ensure that you receive the plan for your budget and needs. We specialize in Medicare Advantage, Medicare Supplements, Dental, Vision, and Final Expense insurance for the senior market of Pinellas County, Pasco County, Manatee County, Hillsborough County, Polk County, Sarasota County, Citrus County, and Marion County, Florida. If you would like a free consultation, contact us online or give us a call at 727-266-0355. For more information, follow us on Facebook, Pinterest, and YouTube.