Benefits of Opting for Burial Insurance with No Waiting Period

Burial insurance is a part of a whole life insurance policy. It helps in paying for your funeral or burial costs or any other bills and outstanding expenses. The death benefit ranges between $5000 and $25000. The amount does not reduce as long as you pay your premiums weekly, monthly, quarterly, or annually. Your beneficiary will be handed the money after your death.

According to Gary P. Cubeta from Insurance for Final Expense, burial insurance with no waiting period offers the full death benefit from the day the policy is issued. Your beneficiary will receive the full death benefit even if only once payment has been made. In the case of natural or accidental death, the beneficiary will still receive the entire amount.

Who Can Qualify For No Waiting period?

Not every senior can qualify for a policy without any waiting period. It is mainly due to medical reasons. Most insurance companies do not require you to take a medical exam. But they might ask you to answer medical questions on the application. A positive reply to any of the questions would immediately disqualify you from the coverage.

Many insurance companies will accept an applicant with a medical condition. But the insurance will have a waiting period of around two to three years. It means that the company will only pay the full death benefit after the waiting period is over.

Increasing Funeral Costs

Nowadays, an average funeral in North America costs between $7,000 and $9,000. The cost includes the funeral home services, burial, and headstone installation cost. While grieving, the last thing you would want to see is a large funeral or cremation bill. Since funerals are costly, many families end up suffering financially.

Hence, burial insurance with no waiting period is the easiest possible way to save your family from any form of burden after your death. If you think that money saved aside will cover these expenses, you must understand that funeral costs continue to increase over a while. That is why burial insurance is becoming a necessity for everyone nowadays.

What Do You Mean By Level Benefit?

A level benefit means that your beneficiary will receive the amount immediately. It has no waiting period. Mostly these are for people in good health. The premium of this policy is also less than the graded or modified policies. People purchase level death benefits to relieve their families from any future stress.

For example, if a healthy 34-year old purchases a burial policy with a level death benefit of $500,000, the beneficiary will receive that $500,000 even if the policyholder dies in a week or the next forty years.

Level death benefits provide a level of certainty to the insurer. Level death benefits are expensive because the value of the death benefit declines every year. Over time it ends up reducing the insurance company’s liability.

Other Types of Death Benefits

  • A graded benefit is apt for individuals with minor health conditions such as systemic lupus, liver disease, Parkinson’s, or COPD. The waiting period for it is up to two or three years. Only after the period gets over, the benefit will be available. The beneficiary will get thirty percent of the death benefit if the insured dies within the first year. The percentage would increase by forty percent in year two. Death in the third year or later will pay 100% of the death benefit.
  • A modified benefit is apt for people with health conditions such as cancer, aneurysms, angina, alcoholism, and stroke. It has a waiting period of not more than two years. If you die due to non-accidental reasons before the waiting period ends, the beneficiary will get a premium with a percentage.  If the death happens in the second year, the beneficiary will receive it with a higher interest.  

Assurance for Your Family’s Future

As the expert Gary P. Cubeta from Insurance for Final Expense says, one of the most significant reasons for purchasing burial insurance with no waiting period is to provide your family with peace of mind. A minimal amount of premium every week, month, or year will leave you with an assurance that your family does not have to struggle after you die.

Whether it is in the upcoming days or the next forty or sixty years, your family will be able to grieve peacefully. For people whose family largely depends on them, a burial insurance policy ensures that the beneficiary receives the death benefit if they die during their coverage period.

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