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4 tips for buying burial insurance

Know before you buy. An insurance agent can help you find the right burial insurance policy for your needs.

When deciding what kind of life or burial insurance you need to purchase, you should know what sets each apart. Different from life insurance, funeral insurance policies pay for the costs of burial, whether traditional or eccentric. Life insurance provides an inheritance to your heirs. If you don't want them spending that on a funeral, which can be expensive, then it's best to have both.

Also known as final expense insurance, burial insurance and pre-need funeral insurance, funeral policies is usually a whole life policy rather than term life. Term life premiums are lower but will end at a certain age (75 or 80) after a specific period of time (10, 15 or 20 years). If it ends during your lifetime, there's no payout at death. A permanent whole life policy lasts a lifetime and pays upon death, no matter how old you are or how long you had the policy. Be sure you are buying a whole life policy when purchasing final expense insurance.

In fact, when purchasing burial insurance, you should ask your insurance provider these questions:

1. Will the premiums change over time?

2. Is there a waiting period before filing a claim?

3. What are the qualifications for this insurance?

4. What is the policy about pre-existing health conditions?

Alternatives to burial insurance, which tends to be more expensive than other types of life insurance, include pre-need funeral insurance or an underwritten term life policy.

Pre-need funeral insurance is whole life insurance tied to a funeral service prefacer. The cost of the funeral is locked in at the time you purchase the insurance.

A term life policy costs less and pays more. Some consumer experts suggest self-insuring for a better return on investment. This, of course, takes some self discipline.

You can get funeral insurance from just about any insurance agent, but be sure to go over the details. Policies differ by provider and even from state to state.

If you're looking for an agent, visit 101corpuschristi.com/insurance for some of the best agents in the area. A swipe or tap of the finger, or click of a mouse will link you directly to an insurance agent who can help you make the best choices for you and your family.

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