Burial Insurance, which is also called death insurance by some insurers, is a policy which allows you to take care of the funeral costs involved when you leave this earthly plain. Having a policy that caters for these needs is a great way to ensure that everything is ready for your departure and your relatives are not left with footing the bill. There are several choices you can make when it comes to insuring your life and it is a sensible idea to investigate it further.
Basic death insurance means that you can make sure that at the very least your funeral is all paid for before you leave this earth. A policy known as Pre-Need Insurance is available which is specifically designed for this purpose. They are available through funeral homes and it is these homes that are the beneficiary of the policy. This ensures that the funds are paying the funeral costs and nothing else.
The most basic form of death insurance is called a Pre-Need Insurance Plan. This policy provides money that can only be used to pay for the funeral costs; it is not permitted to use the money towards any other payments. Typically, Pre-Need Insurance is available from funeral parlors and funeral directors, who incidentally, are the only organizations that can be made the beneficiary of this kind of plan. Essentially, this ensures that the money is not allocated to anything else but the funeral expenses.
The unique thing about these two types of policy is that you are entitled to name any beneficiary that you want. A friend, spouse, colleague or your children could all be picked by you as the named beneficiary. Insurers usually suggest that it is wise to discuss the policy with the beneficiary to ensure that they are clear on your wishes. Make it clear if there are any particular people or organizations that you wish money to be paid to in the event of your death. Unless you discuss these issues with the beneficiary, it is worth mentioning that they can spend the funds in any way they wish if not told otherwise. It is commonly the case that if any of the funds are left unallocated they belong to the named beneficiary.
It is recommended that if you opt for a single policy or nominate one of your children as a beneficiary, the policy is best put into a form of trust. This is due to tax issues which may affect the policy and death benefit if not within the confines of a trust. Taking out a joint policy for you and your partner is a viable option, however it should be noted that many insurers will only pay out one time and that is when the first death occurs. The remaining partner will not have any death benefit paid out once they have passed away.
In respect of death insurance policies there are two main options to pick from. You could have Term Life Insurance; this basically means that the policy will run for a set period of time. If there are no claims made due to death during this time, then the policy ceases to continue. Whole Life Insurance is a policy that will run up until the event of your death and is not limited to a set timescale. Generally speaking, the premiums for the latter option are a bit more than that of the former option.
Obtaining a policy for death insurance is a simple and easy process which can be carried out face-to-face, online or by telephone. Most insurers now have a website on the internet where application forms are available to fill in directly. It is possible to avoid having to have a medical examination or answer questions about your health with some of the policies that the insurers offer.
Finding out about and buying death insurance is quick and easy. These days you can apply or buy via telephone, internet or in person, if you prefer. Insurers now have their own sites online where it is possible and convenient to fill in a quick application form. Usual circumstances dictate that the insurer will not ask for you to answer questions relating to your medical history or request a medical exam.
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