Life Insurance vs. Burial Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What is the Difference Between Burial Insurance and Life Insurance?

Burial insurance and life insurance are both designed to provide financial support after a person’s death, but they serve different purposes and have distinct features.

Burial Insurance

  • Purpose: Specifically intended to cover funeral and burial expenses.
  • Coverage Amount: Typically offers lower coverage amounts, usually between $5,000 and $25,000.
  • Policy Type: Usually a type of whole life insurance policy.
  • Underwriting: Often has simplified underwriting, sometimes with no medical exam required.
  • Premiums: Generally have higher premiums per thousand dollars of coverage compared to traditional life insurance.
  • Age Consideration: Often marketed to older individuals.

Life Insurance

  • Purpose: Provides financial support to beneficiaries, which can be used for any purpose, including debts, living expenses, education, or funeral costs.
  • Coverage Amount: Offers higher coverage amounts, often necessary to support dependents or cover significant debts.
  • Policy Types: Includes term life insurance (for a specified term) and whole life insurance (permanent coverage).
  • Underwriting: Typically requires more comprehensive underwriting, including health questions and possibly a medical exam.
  • Premiums: Varies widely based on policy type, coverage amount, term, and the insured’s age and health.
  • Flexibility: Beneficiaries can use the death benefit for various needs, not just funeral expenses.

Key Differences

  • Coverage Scope: Burial insurance is specifically for funeral expenses, whereas life insurance covers a broader range of financial needs.
  • Policy Size: Burial insurance policies are smaller in coverage amount compared to life insurance policies.
  • Cost-effectiveness: Per unit of coverage, life insurance often offers more value for the premium paid, especially for those in good health.
  • Ease of Qualification: Burial insurance is easier to qualify for, especially for older or less healthy individuals.
Life Insurance And Burial Insurance

How We Can Help

At The Annuity Expert, we understand the emotional and financial stress that comes with planning for the future. With over 15 years of experience as an insurance agency, annuity broker, and retirement planner, we are committed to finding the best solution for you at the lowest cost. Our core mission is to provide tailored financial support that aligns with your unique needs and preferences.

The main problem we solve is ensuring that you have the right type of insurance to meet your specific goals, whether it’s covering funeral expenses or providing comprehensive financial support for your loved ones. We recognize that navigating insurance options can be overwhelming and emotionally taxing. The fear of leaving your family unprotected or burdened with expenses is a common concern. We empathize with these worries and are here to guide you through the process with care and expertise.

Life Insurance Vs. Burial Insurance

What We Recommend

  • Step 1: Initial Consultation
    • During our initial consultation, we will assess your individual needs and preferences. This step allows us to understand your financial goals and provide personalized recommendations. The main benefit of this step is gaining clarity on your options and setting a solid foundation for your financial planning.
  • Step 2: Tailored Policy Selection
    • Next, we will help you select the most suitable insurance policy based on our assessment. We will explain the details of each option, ensuring you make an informed decision. The main benefit here is the confidence in knowing you have chosen the best policy to protect your loved ones.
  • Step 3: Implementation and Ongoing Support
    • Finally, we will assist with the implementation of your chosen policy and provide ongoing support. This includes regular reviews and updates to ensure your policy continues to meet your needs. The main benefit is peace of mind, knowing you have a dedicated partner managing your financial security.

Features and Benefits:

  • Personalized Service: Tailored advice and policy selection to meet your specific needs.
  • Expert Guidance: Professional support throughout the insurance process, ensuring informed decisions.
  • Ongoing Support: Regular policy reviews and updates to keep your coverage aligned with your goals.
  • Simplified Process: Easy qualification for burial insurance and comprehensive support for life insurance applications.

Addressing Common Objections:

  • “I don’t think I need insurance.”: Without insurance, your loved ones could be burdened with significant expenses and financial strain.
  • “It’s too expensive.”: We offer cost-effective solutions tailored to your budget, ensuring you get the best value for your investment.

Neglecting to secure the right insurance can lead to financial hardship for your loved ones, leaving them unprotected and burdened with costs. By working with us, you will experience the relief of knowing your family’s future is safeguarded. The positive outcome is a sense of security and peace of mind, knowing you have made a responsible and caring decision for your loved ones.

Contact us today for free advice or a personalized quote.

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Frequently Asked Questions

What is better, life insurance or burial insurance?

Burial insurance covers funeral and burial costs, while whole life insurance provides financial support to your family for their living expenses. Life insurance replaces your income, pays off debts, finances your child’s college, funds your spouse’s retirement, and can cover final expenses.

Which type of insurance would most often pay for funeral expenses?

An everyday use for life insurance is to cover the expenses associated with a funeral. When purchasing a policy, you can select a beneficiary who will receive the death benefit in the event of your passing.

Is life insurance the same as a burial?

Life insurance policies pay the insured individual’s beneficiaries upon their death. On the other hand, burial insurance grants a fixed amount of money specifically for covering the costs of funeral expenses. It’s essential to note that standard life insurance policies may not provide a payout if the individual passes away due to natural causes. In contrast, some burial insurance policies may cover those instances.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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