One of the most frequently asked questions we receive is, "How much does burial insurance cost?"
For a healthy 50-year-old seeking $10,000 in coverage, an average burial insurance policy may range between $25 and $40. The premiums vary significantly based on factors such as gender, health, desired benefits, coverage amount, and more.
If you have significant health conditions or are over 70, your premium may understandably be a bit higher. While cost is a crucial consideration, it shouldn’t overshadow the primary focus. What truly matters is the potential financial burden you might leave behind for your family and loved ones without a policy.
Given the escalating costs of healthcare, funeral expenses, and general debt in our country, a burial insurance policy can significantly benefit your family.
According to a study by Credit.com, the average debt at death in the United States is $61,554. Who bears this responsibility when you pass away? Creditors typically deduct it from your estate, leaving minimal assets for your family. Depending on your location, your spouse could also be held responsible for property debts.
If your estate can’t cover a specific debt, a creditor usually has the right to seize whatever the loan paid for, unless an heir can afford to continue making payments. This includes your house and your car.
So, the critical question isn’t just about how much burial insurance costs. It’s about providing peace of mind, ensuring you don’t leave behind a financial mess for your loved ones.
The average cost of a funeral with viewing and burial is now close to $8,000. A death can impose upfront costs running into thousands of dollars for your loved ones. Cremations might be a slightly more economical option, depending on your final wishes, but they too can cost thousands of dollars.
While pre-paying may be an attractive option for some, it’s essential to understand how it works. Often, there’s little flexibility with options and money, and it may not necessarily be more cost-effective. Burial insurance funds offer full flexibility, as 100% of the benefit goes to your beneficiary with no contingency on how the money is spent. You can either specify in a will how you’d like the funds spent or leave it entirely up to them.
If you’re over 40 and anticipate needing financial coverage for your funeral and burial, a burial insurance policy could prove beneficial.