Final Expense Insurance vs. Burial Plans: Which One Is Better?

A very hard topic to address, but in the event of your death your family will have to burden with your funeral expenses if not plan beforehand. Individuals will plan their burial expense and star prepaying their funeral before passing away. While this is recommended, our agency believes buying a final expense insurance could be more beneficial to you in the end.

Burial Plans:

The most popular plan, some individuals will contact several funeral homes in order to obtain general pricing on cost from casket, burial plot, transportation and much more. The average funeral cost ranges from $7,000 to $9,000 dollars. Once everything is finish, the payments will be arrange giving you a peace of mind of having everything taken care off. For example, an average cost would look like the following:

While it is a great idea to plan your burial expenses beforehand, we believe obtaining final expense insurance could be more ideal for individuals.

Final Expense Insurance:

As the name explains, final expense covers all burial expense in the event of your death. Similar to a life insurance policy, the price is based on the health and age of an individual. Most policies range from $5,000 to $25,000 and will be paid to your beneficiary on the day of your death. As explain before, the premium will be based on your health and level you fall under on. For instance, life insurance is divided into four categories ranging from best to worst:

Level One: You are considered relatively healthy by the company.

(You may have mild health problems ranging from high blood pressure, cholesterol, and any low risk health related problems)

Level Two: Graded Death Benefit; Under certain provision based on a pass event that puts your health in a higher risk. This category will not pay the full policy funds for the first two years.

Level Three: Guarantee Issue, meaning they will eventually provide the fund if you pass away but could take years and could only pay a certain percentage in the first years.

Level Four: Accidental Death Benefits: Only provides the policy benefit in an event of the policy holder passing away from an accidental death.

Compared to a burial plan, which every item is paid beforehand, final expense insurance provides a check that may cover the full burial expense. While the average cost is $8,000, if you would obtain a $25,000 policy it will leave an extra cushion to pay any reaming debt you may have. We recommend final expense insurance for the reason that the cost may be different on the day of your death. A burial plan solely pays for the items you may need, while a final expense insurance provides the funds to purchase the items you need.

To obtain more information on Final Expense Insurance, call or text one of our agents to obtain a quote in minutes (619) 799 -9443

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