The costs of dying have reached record levels. It can cost upwards of $10,000 for a funeral plus a burial. Thankfully, a standard life insurance policy will cover the many costs of dying. Nevertheless, it won’t cover everything, including the funeral and the burial. You may be thinking that you can take out burial insurance on a relative. And you would be right. You can take burial insurance out for one of your relatives.
The One Restriction on Burial Insurance
You may be in a situation where your relative can’t afford or doesn’t want to take out a burial insurance policy on themselves. That’s fine. There’s nothing to prevent you from doing it for them. The only restriction is the relative still has to be alive. It’s even possible to take out burial insurance when someone is terminally ill and only days from death. The insurer will charge you a lot of money to do that, but they will still offer full coverage.
What Influences the Premiums?
In the case of taking out insurance for a relative, the premiums are influenced entirely by how old the person is and any existing health problems. If someone has a terminal illness, it will naturally cost considerably more to insure them.
How to Get the Insurance
Your relative must make any required medical documentation available during the application. Most life insurance providers also have this facility. You can talk to your existing provider for more information on the specific burial insurance policies they offer. Most applications are decided upon within a few days, so you can take out insurance at short notice if you feel it’s urgent.
Unfortunately, those who fail to take out burial insurance are left in a difficult scenario. Firstly, any outstanding costs will be removed from the deceased’s assets. This can destroy their ability to allow their children to inherit. On the other hand, if they have no assets it’s up to the surviving relatives to come up with the money for the burial costs. If you don’t have a few thousand dollars in your bank account, this could cause you severe financial difficulties.
Burial insurance for your relatives should be considered a financial necessity, if only to prevent you from receiving a demand in the mail. The cost of death is only going to rise as the years go on. Take action now and save any financial pain later.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.