Purchasing cremation insurance an important step for many
Cremation insurance is a category of final expense insurance designed to cover cremation-related expenses. According to insurance expert Gary P. Cubeta of Insurance for Final Expenses, applicants are generally not required to undergo medical assessments to qualify for a cremation insurance policy.
Unlike life insurance policies, acceptance of a cremation insurance scheme is almost guaranteed. The policies are typically for seniors who are at least 50 years old. The beneficiaries may use the payout to cover any death-related expense ranging from post mortem expenses to the urn cost.
Cremation insurance policies are very similar to burial insurance policies and follow the same structure. Studies show that more than 60% of adults in America no longer insist on religious funerals for themselves or family members. This fact has made cremations almost as common as burials in America.
How Cremation Insurance Works
Cremation insurance is opted for by seniors of children of seniors who want to ensure that the insured person’s final expenses are covered and paid for. The coverage for the policy may range between $1000 and $40000. Persons who opt for cremation may not choose to have a funeral. So, cremation insurance may end up being cheaper than funeral insurance.
The average cost of a cremation insurance policy is between $15 and $25 per month. Insurance experts recommend a coverage limit of up to $10000 to ensure the policy covers the funeral, final medical expenses, and other miscellaneous costs.
The insured person is required to pay monthly, quarterly, or yearly premiums to the insurance companies. When the insured dies, the company pays the coverage amount to the insured’s beneficiaries. The beneficiary may use the money to pay off the cremation expenses, funeral expenses, or other expenses.
Benefits of Cremation Insurance Policies
Customers are becoming more concerned about ensuring cremation expenses, medical expenses, and other related expenses are provided for since the wake of Covid-19. While providing for cremation expenses and death-related expenses can be an emotionally challenging task, doing so will help avoid unexpected financial struggles.
Covers a Wide Range of Costs
Cremation expense insurance can cover cremation expenses and transit costs of people attending the funeral, debts and mortgages, final medical expenses, legal expenses, the rise in cremation charges due to inflation, etc.
Cost-Effective in the Long Run
If you already have life insurance coverage, payment of cremation insurance premiums may seem like an additional expense. The fact that cremation insurance premiums tend to be higher than standard life insurance premiums is justified by the shorter policy period.
Data shows that Americans don’t consider cremation expense insurance plans until they are at least 55 years old or diagnosed with a terminal disease. So the insured pays the premium for a much shorter term.
Opting for cremation insurance also ensures that the life insurance coverage is wholly available to benefit survivors of the diseased. Your family will not have to use your assets to cover the cremation expenses or other final expenses.
Coverage Based on Needs
You can customize the insurance coverage based on your needs. The most standard policies are called “Direct Cremation” policies cover only the expense of cremation. They cost a maximum of around $1300.
“Direct cremation with a viewing” policies cost a maximum of $2000 and allow your kith and kin to view the body one extra time before cremation.
“Full-blown funeral with a cremation instead of burial” policies offer more coverage and include funeral costs. The cost usually starts from $4000, and the upper limit depends on your coverage needs. You could choose a basic plan that provides expenses up to $7000 or higher plans that offer coverage of up to $40000.
Easy Application Procedure
The application procedure is simple and straightforward. Since the onset of Covid-19, most insurers allow telephonic and online applications. The applicants don’t have to go through strict medical examinations or check-ups. Your application will not be rejected based on medical conditions. Even persons with terminal medical conditions are accepted.
The waiting period for cremation insurance is concise. It takes as little time as 24 hours for the insurance company to approve a cremation insurance application. The short waiting period is owing to the lenient eligibility criteria.
Cremation Insurance Can Be of Great Support to Your Family
Dealing with losing a loved one is hard enough without worrying about cremation expenses and funeral expenses. By opting for cremation insurance, you are ensuring the financial security of your loved ones. The cost of funerals and cremations is expected to double in the next ten years because of the rising inflation. A cremation insurance policy that considers the rising inflation rates could give your family extra protection.