Paying for a funeral can cause financial stress on many families with limited or no savings. Burial insurance is an affordable way to safeguard your family from this financial stress, as it covers the expense related to the funeral arrangements and any pending medical bills of the departed soul. The leading providers, like Omaha burial Insurance, offer a variety of plans to choose from.
However, most people make a lot of mistakes when buying a burial insurance policy. It often results in high premiums, low coverage, long waiting periods, and more. You should avoid the below mistakes at all costs when buying a burial insurance policy.
- Procrastinating
People are in the habit to delay buying burial insurance, thinking they have enough time, but no one knows what the future holds. Delay in buying burial insurance can prove costly as the premiums for burial insurance are charged based on age. The older you get, the higher will be the premiums.
- Choosing a Plan Without Research
Most people buy burial insurance without researching and comparing all the options available. They are unaware of the information regarding increasing premiums, consequences of not paying premiums, and the policy’s exact total cost. It is essential to evaluate the various options and opt for companies offering more benefits with low premiums.
- Opting for Burial Insurance WithWaiting Period
One of the biggest mistakes when buying a burial insurance policy is choosing a policy with a waiting period to avail benefits. Some providers like Omaha burial insurance provide plans without a waiting period that allows the beneficiary to claim full death benefit even if only one payment has been made on the policy.
- Not Buying From an Independent Insurance Broker
An independent insurance broker will give you many options and provide information about policies, benefits, and eligibility requirements. Most people fail to realize that buying from an independent insurance broker who represents multiple rated companies is an affordable and convenient way to get your application approved for burial insurance.
- Not Buying Burial Insurance of a Top-Rated Insurance Company
People often overlook the importance of buying burial insurance from an insurance company with a financial rating of A. When you purchase from a sound and financially stable company with good ratings and reputation, you can be sure of the company paying claims to its policyholders.
- Making Hasty Decisions
Buying a burial insurance policy requires a proper understanding of the policy. Any hasty decisions can result in insufficient coverage or even rejection. Give enough time to yourself for considering all the options.
- Not Estimating the Funeral Costs
Not estimating or underestimating the amount of coverage you need is a mistake that should be avoided. Before buying burial insurance, it is important to consider the total cost of burial expenses. The kind of funeral you chose whether traditional service or memorial service will determine the amount of coverage you need. The funeral costs will also increase as the years pass by, and it is crucial to consider the inflation cost while determining the coverage.
- Not Answering Health Questions
For burial insurance, anyone can get coverage whether they answer questions on health or not. Most people opt for not answering health questions, but this can impact the premiums raising the cost of the policy. People in good health can save a significant amount of money by answering health questions on the application. The answers you provide will also influence the coverage amount.
- Low Coverage
Not having enough coverage is another mistake many people make. Especially if you face financial hardships, a good burial insurance coverage is what you need for a dignified funeral for your parents. Often people do not pay attention and go for low coverage with low premiums.
- Not Covering Certain Health Conditions
Most burial insurance companies do not cover health conditions such as dialysis, HIV or AIDS, and cancer. But few companies are willing to provide insurance to people with serious health concerns. So, proper research should be done before finalizing a burial insurance policy.
- Not Naming Secondary Beneficiaries
Often the beneficiary is a son or daughter in a burial insurance policy. However, in an unfortunate event, it may so happen that the beneficiary may die before you. Therefore, it is important to name a secondary beneficiary who can receive the proceeds and arrange for the burial.
Avoid these common mistakes while buying a burial insurance policy to prepare for the funeral expenses of your loved one financially. The right burial insurance will ensure your financial obligations are met giving you peace of mind.
