When shopping for life insurance coverage, there are several factors to be mindful of when it comes to how the premium rate is determined. The same will typically hold true, regardless of the type of life insurance that a person is purchasing - including burial insurance.

While many people may have traditional life insurance coverage, it may often need to be supplemented with a burial insurance policy in order to cover the additional final expenses that a person will have at the end of life. This way, you can help to ensure that loved ones will not have to pay these large expenses.

What is Burial Insurance and How Does It Work?

Burial insurance is a type of life insurance that is purchased for the primary purpose of paying off one's final expenses. This type of coverage is oftentimes also referred to as either final expense insurance, or simply as funeral insurance.

Today, the cost of a funeral can be in excess of $10,000 - especially when also factoring in the price of a person's headstone, casket, burial plot, transportation, memorial service, and other related expenses.

By having burial insurance, an individual can help to ensure that his or her family members or loved ones will not have to pay such high bills at an already difficult time in their lives. As with other types of life insurance, the death benefit on a burial insurance policy can typically be received by the beneficiary free of income taxation. In many cases, the death benefit on this type of life insurance plan may also be signed over directly to a funeral home.

How Are the Premiums for Burial Insurance Determined?

There are several criteria that are taken into consideration when a life insurance company is determining the amount to charge an applicant for his or her burial insurance premium. These include the following:

• Age - One of the primary considerations that is taken into account by the insurance carrier is the age of the applicant. Typically, burial insurance is sold to those who are between the ages of 50 and 80 - although there are some insurance companies that will offer their burial insurance policies to applicants who are older. Because the premium price is based in large part on a person's life expectancy, the price will tend to be higher for older applicants. Therefore, the younger a person is when he or she applies, the lower their premium price will be. The good news is that burial insurance is usually less costly in comparison to traditional life insurance coverage.
• Health - While many traditionally underwritten life insurance policies will require that an applicant undergo a medical examination as a part of the application / underwriting process, most burial insurance policies do not. this is due in large part to the fact that these plans do not offer large face amounts of coverage. However, if an applicant has a serious health condition, he or she may still have trouble qualifying for this type of coverage - depending on the insurance carrier.
• Type of Coverage - The type of insurance coverage that is chosen will also make a difference in premium cost. Most burial insurance policies are permanent life insurance - and because of this, once an individual has been approved for the coverage, the amount of the premium will typically be locked in throughout the remainder of their life. In addition, provided that the premium continues to be paid, the life insurance company will not be allowed to cancel the policy for any reason - even given an insured's increasing age, or if the insured contracts a serious illness or disability.
• Insurance Company - The actual insurance company that is chosen for one's policy will also play a part in how much an insured pays for their premium. What many people may not realize is that - just like many other types of products and services in the marketplace - the premiums that are charged on life insurance can differ a great deal from one carrier to another, even on similar coverage, and even when an applicant for coverage has the same criteria on the application for coverage. Therefore, it pays to shop around prior to making a final determination on one's policy of choice - as it can save a great deal on premium cost over time.

How to Shop for the Best Premiums on Burial Insurance Coverage

When shopping for the best premiums on burial insurance coverage, your course of action should ideally be to go with either a company or an agency that has access to more than just one life insurance carrier. This way, you will be able to more directly compare policies, benefits, and premium prices in an unbiased manner - and from there, you can then determine which will work the best for you and your coverage needs.

If you are ready to move forward with the purchase of a burial insurance policy, we can help. We work with many of the top burial insurance carriers in the marketplace today, and we can assist you in obtaining all of the important information that you will need in making an informed purchase decision. When you are ready to proceed, just fill out the form on this page to get your first set of quotes.

Should you find that you have any additional questions regarding what factors affect burial insurance premiums - or even if, you just have a question about life insurance in general - please feel free to contact us. We can be reached directly by phone, toll-free, by dialing 541-400-9040.

We understand that the purchase of burial insurance can be a big decision. You want to ensure that you are obtaining the right amount of coverage from the best carrier for your needs. We can help you to obtain the protection that will provide both you and your loved ones with the protection and the peace of mind that you deserve. So, contact us today - we're here to help.