Burial insurance is a good example of this point. It is a great financial tool for certain groups of people who want a little extra financial protection relating to covering their final expenses. It is not a good tool for others. Knowing whether it is right for you comes down to knowing your financial position and your expectations for the future.
Here are three groups of people who tend to benefit from burial insurance:
1. Seniors without Life Insurance
Believe it or not, purchasing life insurance is no longer the foregone conclusion it used to be. There are plenty of seniors today who, for whatever reason, never chose to purchase whole or term life. Yet now they are over the age of 60 and beginning to consider their own mortality. Because of their age, whole or term life may no longer be either practical or affordable. Burial insurance is a good option for them.
Burial insurance provides a way to pay for their funeral and burial expenses so that family members are not burdened with those costs. At the same time, it is very affordable for almost every consumer. There is actually no good reason for seniors in this group to not have burial insurance if they can afford it.
2. Working Couples
Today’s working couples may find there are other things they want to put their money into rather than life insurance. For example, saving up 15% to 20% for a down payment on a home can be quite a financial endeavor. These young couples do not necessarily need to replace lost income in the event one of them dies, so a term or whole life policy may be overkill for their circumstances.
Once again, burial insurance provides a way to cover those end-of-life costs at a very affordable price. The couple can choose a very good policy that does not cost a lot, thereby enabling them to put as much money away for a down payment as possible. They may consider term or whole life after they purchase their home and begin raising a family.
3. Those without Investments
In a perfect world, everyone would be involved in several different kinds of investments in order to secure their retirement and pay their end-of-life expenses. Nevertheless, this is not a perfect world. There are many American households that simply cannot afford to invest. Yet it does not change the fact that the passing of a family member will cost a significant amount of money.
Purchasing burial insurance will certainly not provide a retirement nest egg or make one independently wealthy. However, it will relieve surviving family members of the expenses related to burying a lost love one. Better yet, it is an affordable way to cover those expenses.
