Everybody should include burial and funeral insurance as part of their long-term financial planning. This is because the average cost of a funeral in the US is between $7,000 and $10,000, while the average balance in savings accounts among Americans is $3,500. This can put additional pressure on your loved ones.
Since most people buying burial insurance are either retired or nearing retirement, affordability is a top priority. In this article, learn how to buy the best burial insurance at the lowest price.
Factors Affecting Burial Insurance Premium
When prospecting for the best low-priced burial insurance packages, you need to consider the factors that affect the insurance package. There are quite a several factors, but the most important ones are:
- Age – Age is the main factor that determines your premium. As you age, you’re going to have to pay more to get yourself covered.
- Current and Past Health – Your current health condition and previous medical conditions are also considered when determining the premium. The healthier you are, the less premium you can expect to pay.
- Coverage – What you want to get coverage on determines how much you’d have to pay. Please note that there are two main types of funeral expenses: burial insurance and preneed funeral insurance. Which type you opt for will affect the total cost of the insurance package.
- Insurance Company – Finally, the company you’re selecting as your insurance carrier will affect the premiums because not every company charges the same rates. This is something you need to compare at your end.
There are other factors in play, like your gender, the state you’re in, and the seasonal offers that companies might be running. Gerber Burial Insurance and other carriers always run some offers to attract customers.
Here are some ways by which you can get the best low-priced burial insurance packages:
Apply for Burial Insurance as Early as Possible
Above anything else, you should start looking for a burial insurance package as early as possible. Generally, every type of insurance rate increases by 8-10% every year of age. This is because insurance carriers are taking a greater risk at covering an aged person than a younger one. Therefore, they tend to charge more. Burial insurance is offered for people aged 50 to 80, but you can buy it even in your 40s.
Calculate Your Final Expenses and Buy a Plan Accordingly
Burial insurance premiums depend on what you want to get coverage on. To calculate your total final expense. These expenses include embalming cost, cremation cost, casket cost, headstone cost, transport cost, funeral service provider fees, among other costs. Once you’ve figured out the total cost, you can select a package accordingly.
Go with an Agent Instead of a Broker
Many people are confused between an insurance agent and a broker. An agent is employed by an insurance carrier, while a broker is independent, offering packages from multiple carriers. Gerber’s agent will only provide Gerber Burial Insurance packages, while a broker can offer plans from various carriers.
Gary P. Cubeta is an experienced broker operating Insurance For Final Expenses. You can get expert advice on your burial expense and insurance package price planning. As mentioned earlier, it’s ideal for planning as early as possible.