If you already have life insurance, you may feel as if burial life insurance is not necessary. The life insurance may already cover some of your expenses, but there are many reasons why you may be better off with burial life insurance as well.
Burials Eat Away at Savings
The medical expenses and burial costs can be enough to wipe out an entire lifetime of savings. The most common cause of debt is medical expenses. Regardless of how much you save, in many cases, the savings are just not enough to pay for a burial.
Burial Life Insurance Frees Up Life Insurance Benefits
If you have a life insurance policy, this may pay for burial expenses. However, it might make more sense to purchase burial insurance and save your life insurance payout for other benefits. Someone's death can lead to unexpected expenses, such as legal expenses and medical expenses. Therefore, you'll want to have life insurance benefits left over to pay for these expenses.
Other Benefits Might Not Be Enough
You may receive benefits that will pay for the burial depending on your circumstances. For example, Medicare allows for up to $1,500 to be allocated toward burial expenses. Social Security provides $225. While these will certainly not pay for all of your burial expenses, they can help to lower the cost. Also, veterans receive burial benefits, but they have a cap of $2,000.
Even with all of the benefits that may help you pay for burial expenses, the cost of burials has risen continuously and it can, therefore, be challenging to pay for the burial of a loved one. For example, burial plots have become more expensive. The materials that are used to pay for funerals have also gone up in price.
Funerals Are Becoming More Expensive
You can expect the price of a burial to range from $7,000 to $9,000. The largest expense is the cost of the casket. This is followed by the fees associated with basic funeral services. After that, there's the embalming, hearse, ceremony, viewing, preparation, and service vehicle costs. Some family members are forced to resort to cremation even if this wasn't the wish of the deceased in order to save money. However, cremation can also be expensive and you'll only be paying half as much for the casket. For that reason, it's a good idea to have the extra insurance and peace of mind that comes from purchasing burial life insurance.