Burial Insurance, Part Two: How and Where to Purchase Burial Insurance
Once you’ve decided that you’d like to purchase a burial or funeral insurance policy as part of your final plans, the real challenge comes into play. There are countless burial insurance providers out there (which range from funeral homes to traditional insurance companies), and you have options when it comes to choosing the right one.
Know Where to Look
Be wary of anyone contacting you about burial insurance (as opposed to the other way around). Although there have been recent crackdowns on scams and dishonest companies preying on uneducated buyers, there are still predatory companies out there. While it’s perfectly fine to set up a meeting with an insurance provider who comes to you, make sure you also contact a few companies of your own choosing. You can compare and contrast their offers that way.
Talk to your current insurance provider. Oftentimes, the same company you rely on for home insurance, auto insurance, and life insurance also offers burial insurance options. Because you already have a relationship with the company, you can get good deals and/or work with someone you already trust.
Contact a funeral home or cemetery directly. Funeral homes rarely double as insurance companies, but they may have recommendations and discounted options available if you purchase a burial insurance policy through them. This is an especially ideal option if you’d like to also pre-arrange a funeral with that particular home.
Know What You’re Shopping For
Every burial/preneed/funeral insurance policy is different, and one of the most important distinctions to look for is whether you’re looking at a whole life or term life policy.
Term life policies almost always end after a certain amount of time (either when you reach a certain age or when a certain amount of time passes), and if you don’t require the burial insurance before that time is up, you don’t get a payout. This is a much more common option for traditional life insurance, and shouldn’t be part of your burial plan. Instead, look for a whole life policy that will last until you die and ensure that your beneficiary receives the full payout.
Making Funeral/Burial Insurance Decisions
It’s a common practice for insurance agents to wish to sell you a policy during the time of your consultation or meeting. While there’s nothing wrong with this, don’t feel pressured to sign up for any kind of insurance until you talk with your family and financial advisor.
Your family may have input on how much of a burial insurance policy they’d like you to take out, or they may wish to contribute to the premium costs themselves. A financial advisor can let you know whether or not you’d be better putting your money elsewhere.
Above all else, it’s important for you to feel good about your decision to take out burial insurance. The entire point is to provide peace of mind for both you and your loved ones—not to add stress to an already difficult decision.
For more reading on Burial Insurance, read Part 1 and Part 3 of our blog series, About Burial Insurance.