A Comprehensive Guide To Life Insurance For Funeral Costs
Life insurance also provides beneficiaries with the insurance policy that provides death benefits which is called life insurance for funeral costs. In general you can use this money the way you want to. However there is a type of policy for seniors which is known as funeral and burial policy. This policy covers final expenses such as burials, funerals and other end of life cost.
What is funeral insurance?
These policies are compared to the other types of small policies. The face value of such policy is from 1000 dollars to 25,000 dollars. This policy helps beneficiaries with expenses when their loved ones pass away. Life insurance companies have developed this insurance policy so that middle class families can have policies within the budget. They are even very easy and simple to apply. They have also been developed in such a way so that older people can easily get accepted for this type of policy. You will also find guaranteed issue which means all the applicants are accepted in the right age bracket. However in such case applicant will not get immediate death benefit. They will use a graded death benefit instead of health issues. This means insuring people will not get the full amount of the policy if he passes before the period of insurance expires.
Graded death benefit
For instance a policy having 3 years time period before full benefit is paid.Over that time period insured person will get the full amount of money. If the insured person passes away before that time period ends, in such case his family will get some percentage and in some cases only premiums are refunded. So make sure you are using the right type of insurance policy because every policy is having specific details.
How policy pays for the funeral?
Let us say you purchased a policy of 25,000 dollars and made your daughters beneficiary of the policy and each of them got half. Your daughters are also responsible for making your funeral arrangements. When the time came it was found out that the funeral cost is only 10,000 dollars. This included burial, funeral and other end of life cost. Both of your daughters agreed to chip in 5000 dollars to cover all the end of life cost. The rest of the money can be used by your daughters the way they please.this way funeral policy works.
What is funeral insurance?
These policies are compared to the other types of small policies. The face value of such policy is from 1000 dollars to 25,000 dollars. This policy helps beneficiaries with expenses when their loved ones pass away. Life insurance companies have developed this insurance policy so that middle class families can have policies within the budget. They are even very easy and simple to apply. They have also been developed in such a way so that older people can easily get accepted for this type of policy. You will also find guaranteed issue which means all the applicants are accepted in the right age bracket. However in such case applicant will not get immediate death benefit. They will use a graded death benefit instead of health issues. This means insuring people will not get the full amount of the policy if he passes before the period of insurance expires.
Graded death benefit
For instance a policy having 3 years time period before full benefit is paid.Over that time period insured person will get the full amount of money. If the insured person passes away before that time period ends, in such case his family will get some percentage and in some cases only premiums are refunded. So make sure you are using the right type of insurance policy because every policy is having specific details.
How policy pays for the funeral?
Let us say you purchased a policy of 25,000 dollars and made your daughters beneficiary of the policy and each of them got half. Your daughters are also responsible for making your funeral arrangements. When the time came it was found out that the funeral cost is only 10,000 dollars. This included burial, funeral and other end of life cost. Both of your daughters agreed to chip in 5000 dollars to cover all the end of life cost. The rest of the money can be used by your daughters the way they please.this way funeral policy works.