Approximately 10,000 baby-boomers leave the workforce and retire every day. However, many of these new retirees will lose their life insurance benefits once they do leave the workforce. This could potentially leave their family members and loved ones with the financial burden of burial expenses should they die without sufficient life insurance coverage. Death is inevitable, so it is a wise decision to make the necessary preparations to ensure that your final expenses are covered by a burial or final expense policy, instead of leaving those costs to your family members or loved ones. Most people have heard of burial insurance, however, most do not understand entirely how it functions or why it’s necessary. The following FAQs will help to clarify things you may not quite understand about burial insurance.
- What is Burial Insurance?
Also referred to as final expense insurance, this type of policy has the benefit of the designation of payment for burial expenses. A 
moderately budgeted funeral and burial costs approximately $10,000. You are able to purchase a burial insurance policy that covers your final expenses, rather than leaving such an enormous bill for your surviving loved ones.
- Which Type of Life Insurance Works Best for Insurance?
Whole Life Insurance is the better choice as a burial insurance policy due to the fact that it remains active for your lifetime, as long as you pay your premiums. Lower priced insurance policies, such as Term Life Insurance expires, which means you will survive your policy.
- How Much Burial Insurance Should I Purchase?
This will be dependent on whether you prefer a traditional burial or cremation, and on the amount, you would like for your beneficiary 
to spend. Most insurance providers offer benefits ranging from $1,000 to $25,000. It will be important to contact a reputable and licensed broker regarding the average costs of a funeral in your area because the prices do vary from state to state. Nationally, the average cost for a moderately priced standard funeral is about $10,000, with cremation costs averaging $5,000. Policyholders can elect to purchase additional insurance in order to cover final expenses such as nursing home costs and other acquired debts.
- Is it Required to Use the Burial Insurance Death Benefit for Funeral Expenses?
No, your beneficiary may use the death benefit in any manner they choose. Your insurer’s responsibility is to relinquish payment to the named beneficiary. With that being said, it is wise to choose someone that you trust to handle your final wishes.
- What Is the Maximum Age that I can Purchase Burial Insurance?
The majority of insurers will offer burial or final expense insurance to policy applicants until the age of 85. However, be forewarned, it is not a good idea to wait until such an age to purchase burial insurance because the cost of your coverage is based on your age at the time of purchase. The older you get, the more expensive the policy will be.
- Will my Monthly Payment Increase as I Get Sick or Older?
Once you have purchased your burial insurance policy, your periodic premium cannot increase as you become older or ill. This payment is guaranteed to remain consistent for the duration of the policy.
- Can the Insurance Company Cancel my Policy?
The only reason your policy can be canceled is if you do not pay your periodic premium (monthly payment). There are no other allowable reasons for the insurer to cancel your burial insurance policy.
- What Happens if I’m Ill and I Need to Purchase a Policy?
In the event that certain health issues prevent you from purchasing a standard policy, most insurance companies will offer a 
“guaranteed issue” policy that does not require medical questions or a medical exam. However, this type of policy has a waiting period of 2-3 years before the insurer will pay the death benefit relating to natural causes. Fortunately, they will pay the death benefit if the death results from an accident, starting the first day of coverage. The cost of a guaranteed issue policy will be more since the insurer does not require underwriting information relating to the applicant.
- Can I Purchase More Than One Type of Insurance Policy?
Yes, many people carry multiple insurance policies designated for different circumstances. For instance, a large term insurance policy will pay off your debts and replace your income, a mortgage protection policy will pay off your home, and a burial insurance policy will cover the funeral and burial expenses.
- Where do I Obtain the Best Price for Burial Insurance?
Even though you can purchase burial insurance directly from the insurer, it is more logical to seek out a reputable licensed agent because you are not charged for their expertise. Independent insurance agents represent many of the best companies that provide burial insurance. Furthermore, the agent will shop around for you and assist you in the purchasing process.