When it comes to choosing the right type of policy, many people are torn between burial insurance vs life insurance. It is not surprising since both types of policies are very similar in a sense, but there are differences that you will need to know in order to make the right choice for your needs.
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The purpose of both types of insurance is that the beneficiary will have sufficient funds to cover all the expenses that the policy holder left behind. However, there is a difference in emphasis of each type of insurance.
If you’re stuck between these two, this article will help you to decide. Just read out the full article and make sure you understand the pros and cons of both types of coverage.
Also called funeral insurance, this is designed to cover the burial expenses of the policy holder and usually nothing more. This type of insurance is calculated to provide enough benefits to ensure that all the costs of the funeral are covered. This is generally a low cost insurance policy for those who have little in the way of debt and may be advanced in age. Read more about burial insurance costs and coverage.
This is a very popular form of insurance because it is generally inexpensive, simple to obtain and is available for those with health issues as well as being advanced in age. However, there are generally limitations to the amount provided in the benefits so its primary use in one that covers funerals alone.
Life insurance in general is broader in nature as it not only can cover funeral expenses, but also the debt built up by the policy holder over the years as well. This is the type of policy that is designed to protect the family from the financial burden that is incurred when a loved one passes away, particularly a person who is the breadwinner.
By covering the funeral, any accumulating debt and leaving behind enough money to hold the family over until they can get back on their feet, this type of policy can be really helpful at least in terms of handling the financial part of the loss.
Burial Insurance vs Life Insurance – Take Your Own Decision:
When comparing both types of policies, the first thing that most people will notice is that the burial insurance is generally less expensive while offering fewer benefits. This is the perfect policy for those who only need to cover the funeral expenses and nothing more. This makes it the perfect policy for seniors who have little to no debt and are on a tight budget.
Life insurance however has more requirements and even the no health exam policies often ask health questions. This type of policy is more expensive, but it does provide greater benefit potential to protect the family from the loss of a breadwinner. Plus, a legacy can be left behind as well which will help the beneficiaries in a number of ways from preparing for college, retirement or some other endeavor. This is the type of policy best suited for those who are reaching their senior years and are in good health as well.
Choosing between which policy is best for the needs of you and your family will be one that takes into consideration your budget to afford the premium payments while ensuring that all expenses are covered.