Burial insurance is meant to cover your medical bills, debts, and funeral expenses. Purchasing the right policy can be a little tricky than other life insurance policies. So, before you speak up to your agent about it, you must know the ins and out of any burial insurance policy.
Gary Cubeta from Insurance for Final Expense says most people don’t consider doing homework and look at platforms like insuranceforfinalexpense.com. In this way, they end up paying more in premiums; not knowing what to ask and what to expect can affect your chances to get burial insurance that’s best for your interests.
You can benefit a lot by avoiding the following mistakes people make when opting for a burial insurance policy. Following is a list of 5 mistakes you should avoid while buying burial insurance.
Not Comparing Quotes From Different Companies
Many are not aware of the facility to request quotes from insurance companies. With no quotes, it becomes difficult for you to know the burial insurance policy cost of various companies. The chances are that you may lose out on a better policy at a lower cost.
Before you decide to buy any burial insurance, you need to have quotes from different insurance providers. Finding burial insurance providers is not difficult. A basic Google search can get you a list of several burial insurance companies.
Requesting a quote is the best way to find the right burial insurance policy for you at affordable prices. Moreover, you can get a quote instantly for free. You will not be under any obligation to pay or select the insurance company. Make sure to utilize this benefit and compare quotes from different companies.
Having different quotes will help you understand what the policy might cost you. It will also help you analyze which policy provides good returns and benefits on the money you would be paying.
All online insurance companies offer instant burial insurance quotes by filling out some details about you. For example, by filling in details like birthdate, state, gender, estimated coverage, etc., a quick quote tool, you can get an instant quote.
Try to get quotes from all the reputed insurance providers for comparison and see which can offer you good coverage at the most affordable rate.
Incorrectly Estimating Your Insurance Coverage
You might want burial insurance to manage your burial expenses, support your family financially, or pay off your debts. Therefore, the amount that your policy is paying should be enough for all these things. Most people end up with a policy that does not have enough coverage because they don’t have an estimated amount.
To check if your insurance coverage is adequate, you can start by estimating your final expenses. It helps you determine how much amount you need to meet the end-of-life costs. Many tend to overlook the aspects of funeral expenses. It includes not only a typical funeral cost but also the following:
- The funeral home’s rental fees
- Transportation expenses to the cemetery
- Service fee for the officiant
- Additional final send-off costs such as the ceremony.
Understand that not every policy is the same, and the coverage you require would also be different from someone else. Your coverage should fulfill your needs and should compensate for your financial expenses.
Having a low coverage policy will not serve the purpose you opted for the burial insurance, or a high coverage will make you pay higher premiums than needed. You must calculate the amount that would be enough to pay for your final expenses and other financial obligations.
Little Or No Knowledge of the Underwriting Process
Every burial insurance company has its underwriting process to qualify or disqualify a client. You must know that even if you are disqualified by one company, you can be eligible for another. The underwriting process involves asking for personal details and health information.
Lying is a big no while answering questions, as this is why many people get disqualified too. Ensure you give correct information about your medical condition, financial status, medical bills, and prescription.
Based on the information provided by you, the underwriter can tell you whether or not you can get the premium you were initially quoted. This process can take some a week, but you can take the help of an agent to make this process easier.
Overlooking The Waiting Time
Most people don’t consider the waiting time while buying a burial life insurance policy. Imagine you purchased a policy with a two-year waiting period. But Unfortunately, you died in the first year of your policy. It means your family will get no benefits even after paying for a year. You can avoid such a situation by going through the companies that offer burial insurance without any waiting period.
You are most likely to face a waiting period if you are diagnosed with cancer, congestive heart failure (CHF), dementia, cirrhosis, heart attack, or take a guaranteed acceptance of whole life insurance. Every insurance provider has their list of conditions on which you’ll have to wait to get the full benefits. So, go through it and see if you can get an insurance policy without a waiting period in any company.
Not Checking The Claim Settlement Ratio
Most people fail to get their claim as they never checked the claim settlement ratio of the company. This ratio denotes the efficiency rates at which an insurance company settles the insurance policies. Therefore, you must check the claim settlement ratio of the company before buying any policy.
A healthy ratio tells you that the insurance company is reliable. Choosing a trusted company will give you peace of mind that your beneficiary will not have trouble getting the money you have saved.
Finally, it is essential to go through all the terms and conditions of the burial insurance policy. Review the documents thoroughly before you invest in a policy. Overlooking these vital aspects is another mistake that many people commit. Make sure all the conditions laid down by the insurance provider are favorable to you.
Every policy has a cooling-off period of 15 to 20 days. So, if you don’t agree to anything, you can return your policy and get your premium back, minus the insurance agency costs. Prior knowledge of all the aspects of a burial insurance policy can help you make informed decisions while opting for it.