If you are considering canceling your burial insurance policy because you feel it’s an unnecessary expense, think again. Burial insurance is a beneficial policy to have, just as important as life insurance. Here is what you need to know before you cancel your burial insurance.
1. It’s the Best Policy to Have if You Have Health Issues
If you have health issues, consider your options before you cancel your burial insurance policy. It’s an easy policy to obtain because they typically do not require a medical exam. Compare that to the average life insurance policy that requires you to be a healthy individual.
2. Getting Life Insurance is More Costly
If you decide to cancel your burial insurance and choose life insurance, again, you may be faced with medical exams. After determining your risk factor, you may also be faced with a high monthly premium. Although you may find a policy that you can afford, you do not get a “continuous coverage” option after dropping your burial insurance policy. So should you pass away directly after receiving your new life insurance policy, your beneficiaries may not receive anything more than what you put into the plan.
3. You Will Not Receive a Refund
After canceling your burial insurance policy, you would not be entitled to a refund of your monthly premiums. The only way around that is if you found your policy to be fraudulent. However, in most cases, if you’ve done your due diligence, you’ll know your policy is legit.
4. Additional Expenses May Occur
Having a burial insurance policy is a great supplement to a life insurance policy. Your life insurance plan is meant to cover your family members and sustain their way of life. Your burial insurance can cover all your funeral expenses leaving your life insurance to cover additional medical bills, taxes, and cover the mortgage.
5. Your Family May Not Be Able to Cover Your Funeral
Most funeral homes need payment before their services are rendered. At times, a life insurance payout may be put on hold due to verifying the policy is paid up to date or verifying the cause of death. In this instance, this makes it difficult for your family to pay your funeral expenses. A burial insurance policy ensures you can be put to rest immediately and take the burden off your family needing to find the cash to do so.
Burial insurance is a necessary policy. Think twice for your family’s sake before canceling it.