Tuesday, August 29, 2017

Types of Funeral Insurance: A Brief Comparison

Insurance for life
A majority of people are unaware of the fact that they can also cover expenses for their burial in advance, just like a life insurance policy. After the death of a person, the family has to deal with financial issues along with emotional problems. Planning for your funeral beforehand can help you ensure that your family stays away from monetary difficulties and will be able to put you to rest without having to worry about the expenses of the ceremony. Burial insurance policy is a pre-funded method of arranging money sufficient to pay off post-death expenses.

On the basis of payment plans, burial insurance can be categorised as the following:

• Level Benefit:

No matter for how many months you have paid the premium, your family will receive full death benefits. You can take the policy only if you are currently within the age bracket of 45 to 89 years. Click here to know more about this and get a policy in your name.

• Graded Benefit:

The Graded Benefit policy is available for people between the age of 45 and 80 years. As per the laws, the company has to make full policy payment in case of accidental death. However, the receiving amount varies in case of non-accidental death. If the person has paid premiums for less than a year, the family will receive only 40% payment. If the person dies during the second year of taking insurance policy, the beneficiaries can claim up to 75% of policy. After two years of paying premiums, the family will be subjected to full payment.

• Modified Benefit:

You can get a Modified Benefit policy in your name only if you turned 45 to 75 years old on your last birthday. If the person dies naturally during the first or second year of paying premium, their family will get 110% of the premium paid. The payment will be 100% if the person has paid for three or more years. However, the family will be entitled to a full fund in case of the accidental death of the person.

When you get insurance, whether life or burial, you have to name your beneficiaries who will claim for funds after your death and receive funds as per the terms and conditions of the policy you chose. On the basis of beneficiaries, the burial insurance policy can be classified into following three types.

Family Members:

Many people choose life insurance policy so that their family can pay off expenses after their death. However, the insurance company takes some time to settle the payment. On the other hand, beneficiaries can claim the burial insurance policy immediately. You can entitle any family member to receive funds after your death.

Funeral Director:

It is not necessary to name a family member as beneficiary for burial insurance. You can contact a funeral home and sign a contract with them to arrange your funeral. They will make arrangements for burial on their own, but you will have to name the home director as beneficiary.

Funeral Home:

You do not need to specify a person as the beneficiary of your burial policy. You can name a funeral home as the beneficiary for the policy. The funeral home makes necessary arrangements for grave, burial plot, funeral cars and cremation. For such beneficiaries, get a policy that does not come with specifications on the usage of funds.

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