Break Through The Jargon: Death Insurance Explained
Burial Insurance, which is also called death insurance by some insurers, is a policy which allows you to take care of the funeral costs involved when you leave this earthly plain. Having a policy that caters for these needs is a great way to ensure that everything is ready for your departure and your relatives are not left with footing the bill. There are several choices you can make when it comes to insuring your life and it is a sensible idea to investigate it further.
Basic death insurance means that you can make sure that at the very least your funeral is all paid for before you leave this earth. A policy known as Pre-Need Insurance is available which is specifically designed for this purpose. They are available through funeral homes and it is these homes that are the beneficiary of the policy. This ensures that the funds are paying the funeral costs and nothing else.
Other options of death insurance you can pick from differ from this basic package. Some policies are quite liberal and the amount that is paid out after your death can be paid to anything else, as well as the cost of the ceremony. After your death, any outstanding debts or expenses can be paid using the death benefit the beneficiary is given. When looking for these options, they will either be titled as burial insurance or final expense insurance.
The advantage of these types of policies is that you pick the person who receives the death benefit. It could be a spouse, colleague, your children or a friend. It is recommended that after taking out a policy, you discuss with the beneficiary where you would like the funds to be allocated. You may have specific requests about who should be given a payment from the monies received. It is worth noting that the beneficiary will be given the money to use as they see fit unless you do this. Also, any cash that is left over belongs to the named person themselves.
The benefits of burial or final expense insurance include being able to choose who you wish the beneficiary to be. It could be a close family friend, one of your children or a business associate. Whomever you choose, it is recommended that you talk to them about what you want to happen with the benefit after you have passed away. If you have certain people of companies you wish to receive some money, then this should be pointed out to the beneficiary after the policy is started. These policies allow the beneficiary to spend the money as they see fit if there have been no specific instructions from the deceased. Nominated beneficiaries are also normally able to keep any left over money as their own.
When searching for death insurance policies you will find that there are two main types to choose from. Whole Life Insurance is designed to last from the moment it starts until the time of your death. There is no waiting period to contend with if you choose this option. Term Life Insurance lasts from the time a policy is started until a pre-determined end date; thus it is limited by a set period of time. If you die whilst the policy is still active, then the beneficiary will receive the benefit. If not, then the policy is simply cancelled. You will find that the premiums payable for the latter policy type is normally cheaper than the premiums for the former type.
Obtaining a policy for death insurance is a simple and easy process which can be carried out face-to-face, online or by telephone. Most insurers now have a website on the internet where application forms are available to fill in directly. It is possible to avoid having to have a medical examination or answer questions about your health with some of the policies that the insurers offer.
Finding out about and buying death insurance is quick and easy. These days you can apply or buy via telephone, internet or in person, if you prefer. Insurers now have their own sites online where it is possible and convenient to fill in a quick application form. Usual circumstances dictate that the insurer will not ask for you to answer questions relating to your medical history or request a medical exam.