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Burial Insurance in Estate Planning | Lifease Health

Overview

Including burial insurance in estate planning is the best financial strategy. It protects your loved ones and ensures wealth preservation. 

If you want to grow your assets and ensure the financial protection of your loved ones, include burial insurance in estate planning. It will help your family to cover final and other expenses. 

This guide will explain estate planning and burial insurance. It will also highlight how including burial insurance can enhance your financial strategy.

Estate Planning

Estate planning is an essential part of financial policies. It maintains and distributes the assets of a person. This process provides financial assistance to your family after your death. 

Burial insurance is considered one of the key parts of estate planning. Since it covers your debts and other expenses, it protects your property. Additionally, it secures the future of your loved ones. 

Burial Insurance

Burial insurance is a life insurance that is also called funeral insurance or final expense insurance. This insurance is permanent and has no expiration. It offers coverage for your entire life. You will get the coverage only when you pay the monthly premiums. 

Premiums

Premium is the main aspect of funeral insurance. Premium is the amount that the policyholder has to pay every month. Paying the premium amount keeps your life insurance activated. If the insured does not pay the monthly premiums, his insurance may get deactivated. 

Funeral insurance is one of the affordable life insurance plans. The premium amount does not increase or decrease. However, your age and gender can change the amount of the premium. The amount is less for females and young applicants than for males and older applicants. 

Additionally, the policy and coverage you are selecting also affect the amount. For example, if you want maximum coverage or death benefits, you will have to pay a higher premium. 

Death Benefits

Death benefit is the assistance your loved ones receive after your death. It is given in the form of money or services. Typically, the beneficiary receives the benefits. A lump sum of money is given to cover final expenses. 

One of the best things about burial insurance is that the beneficiary is free to spend the money. Primarily the money is spent to cover the funeral costs. It also covers other expenses such as:

  • Medical bills
  • Outstanding bills
  • Residential care
  • Mortgage 
  • Transportation
  • Other additional expenses 

There is a death benefit flexibility in burial insurance. This flexibility helps your loved ones in protecting their assets. 

Burial Insurance

Burial Insurance Estate Planning

Final expense insurance is important in estate planning. It helps your loved ones to cover your end-of-life expenses. It is one of the best financial supports your family can have. With the help of burial insurance, your family can cover your medical expenses and outstanding debts. 

Moreover, it prevents them from borrowing money from relatives or friends. And, without requesting a loan, they can cover all the burial and funeral costs. 

Typically, families borrow money or request loans to cover the costs of the funeral services. This can lead to outstanding debts or mortgages. To prevent your family from debts, get a final expense insurance. This insurance helps your family to cover burial expenses with ease. 

Estate Planning With Burial Insurance

Estate planning with burial insurance is the best financial strategy. By planning your estate with life insurance, you can protect your assets. You can also grow your wealth with the help of burial insurance. It allows you to:

  • Protect your loved ones financially
  • Cover outstanding debts
  • Offer immediate cash
  • Fulfil your wishes
  • Presser wealth
  • Easy estate settlement process 

Protect your family financially

The top benefit of estate planning with burial insurance is the financial protection of your family. No doubt your loved ones are financially secured with final expense insurance

If you include final expense insurance in estate planning, there is no way they will face any financial challenges. It helps to reduce financial burden. 

Cover Debts

Debt coverage is another reason for including burial insurance in estate planning. Debts can consume your wealth like a parasite. However, final expense insurance will cover your debts, protecting your assets. 

Your family does not have to think about covering your debts. Final expense insurance will take care of them. 

Organize Your Funeral

You can plan your funeral and organize it as you want. With burial insurance, arranging your funeral is easy. 

You can add your final wishes and ask whatever you want. This will reduce the confusion and disputes in your family. Also, it will give you and your family a peace of mind. 

Easy Estate Settlement Process

You can have an easy estate settlement process with funeral insurance. Funeral insurance has an easy settlement process. Pay the premium and get access to funds.

Immediate Cash

In case of immediate assistance, final expense insurance offers immediate cash. With this assistance, your loved ones can cover your debts or final costs. 

Preserve Wealth

Another main reason to include burial insurance in estate planning is the preservation of wealth. You can preserve your wealth for your heirs and spend the money accumulated from cash value. Burial insurance includes cash value. This cash value helps to grow your estate. 

Furthermore, the death benefits of final expense insurance are given to the beneficiaries tax-free. Now you can pay your bills without taxes. Also, you can replace your wealth that is lost due to taxes and expenses.

Burial Insurance Benefits

Burial insurance is a common financial asset that provides future financial security for families. While many people are familiar with the basics of burial insurance, they often overlook the main benefits and services. 

No Medical Exam

Anyone can obtain burial insurance since it does not include any medical exam. This makes this life insurance one of the best policies.

If you have any serious medical problems and seeking life insurance, then funeral insurance is the best plan for you. Without taking a medical test, you can get the benefits you want.

Fixed Premiums

The premium amount does not change in funeral insurance. Neither it increases, nor does it decrease. It will remain the same.

Guaranteed coverage

Once you get the insurance, the coverage is guaranteed. You will receive the coverage for a lifetime and there is no delay.

Death benefit flexibility

The chosen beneficiary is allowed to spend the money to cover any expenses. With the death benefit, your loved ones can cover your funeral costs. However, there is no limitation. They can cover other expenses as well, such as:

  • Medical bills
  • Credit card bills
  • Debts
  • Hospice care 
Final Expense Insurance

Types of Burial Insurance in Estate Planning

There are four major types of burial insurance. These types include:

  • Term life insurance
  • Whole life insurance
  • Variable insurance
  • Universal life insurance 

Term life insurance

Term insurance provides protection against an insured for a specified period. This life insurance has a date, typically 1, 5, or 10 years. Also, it offers coverage for seniors up to a certain age. 

If the insured dies, term life pays proceeds to the designated beneficiary. And it renews with higher premiums each time. However, it is cheaper and provides the most immediate coverage per dollar spent. This makes it popular among consumers.

Whole life insurance

This type of life insurance offers protection to the insured for a lifetime. The policyholder pays the same premium amount throughout the policy period. It includes cash value that grows tax-deferred. You can use this cash value as an income source.

Variable life insurance

The death benefits fluctuate in variable life insurance. The cash value also fluctuates based on investment experience. 

Variable life insurance offers higher death benefits and cash value. However, it has a high risk of negative investment performance.

Universal life insurance

This life insurance has an investment option. It also involves a term contract. This allows you to pay premiums and change insurance amounts. 

The cash value reflects interest earned at prevailing rates. It has guaranteed rates for one year and no lower than specified in the policy.

Bottom Line

Financial strategy burial insurance is the best strategy for protecting your family and assets. If you are a senior adult and want to secure your family’s future, include burial insurance in estate planning. It will help you preserve your assets and grow your wealth. So, do not wait and get a final expense insurance today. 

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Why final expense insurance should be included in estate planning?

Including final expense insurance in estate planning helps to grow your property. You can preserve your assets with final expense insurance as it covers your final costs, medical bills and debts. 

Is burial insurance worth including in estate planning?

Yes, including burial insurance in estate planning is one of the best financial strategies. 

What is the best life insurance that offers maximum coverage?

Whole life insurance is one of the best life insurance plans. It offers coverage for a lifetime. 

Which life insurance plan is the cheapest?

Term life insurance is one of the cheapest life insurance plans. If you have a low budget then get term life insurance. But keep in mind that it provides coverage for a limited time. 

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