How to Buy Burial Insurance

Unfortunately, we should learn how to buy burial insurance because we all will need it one day. Burial insurance is also known as funeral insurance. Planning funeral expenses in advance is a prudent move. Family members do not have to make any arrangements for the deceased or pay any money out of their pocket. Simply put, the owner of the funeral policy will pay a company for his funeral expenses. When he dies, the company will pay for the funeral. Please keep in mind that rules and regulations will vary sometimes in each state. Read on to learn more about how to buy burial insurance.

Things You'll Need Difficulty: Easy

• Cash
• Burial Companies
• Inform Family Members

Step 1 Funeral Budget

Develop a funeral budget to learn how to buy burial insurance. Do not forget that the Social Security Administration may pay $255.00 toward these expenses. Keep in mind that veterans, military services personnel, and some civilians may receive a free burial from the United States government. Some employers may pay for burial expenses. Consider these options while creating a budget for funeral expenses.

Step 2 Establish Payable-on-Death Account

Obtain a Payable-on-Death Account (POD) to learn how to buy burial insurance. Visit a bank and ask the teller for a POD form. Fill out the form with the beneficiary name(s) listed and return the form back to the bank. Do not name the funeral company as the beneficiary. Name a family member, a close friend, or someone that can be trusted as the beneficiary. This is one of the most convenient ways to pay for burial expenses before you die.

Step 3 Contact Funeral or Burial Companies

Learn how to buy burial insurance by contacting burial or funeral companies that sell funeral insurance. Please be aware that there are dishonest individuals that will take your hard earned money so watch out for scams. Make sure you know which services are covered and which services are not covered before signing papers and making payments. Get burial quotes from at least five companies and compare them and then read the fine print carefully.

Step 4 Deal With Reputable Companies

Protect yourself by dealing with reputable companies to help you learn how to buy burial insurance. Contact the state's licensing board that governs life insurance companies, funeral companies, and burial companies and make sure that they are legally registered to offer and provide these services. Hire an estate attorney to review the policy to make sure it is valid in your state. Buy the policy that you can afford and one that will meet your needs.

Tips:

• Do business with experienced burial companies.
• Ask providers can you contact former clients before buying a policy.
• Keep up with all payments and receipts.

Warnings:

• Never cash in the policy for a loan.
• Make sure that the policy will transfer if the company goes out of business.
• Find out what happens if you decide to use another burial company.

References:

Texas A&M University System Agriculture Program

Funeral Planning: An Important Step in Getting Your Affairs in Order

http://agnewsarchive.tamu.edu/dailynews/stories/CFAM/Jan1106a.htm

Life Insurance Planning:

Alabama Cooperative Extension Service

http://www.aces.edu/urban/metronews/vol6no1/lifeins.html

Resource:

US Funerals Online

http://www.us-funerals.com/pre-planning.html

Cornell University Law School

Life Insurance Companies Defined

http://www.law.cornell.edu/uscode/uscode26/usc_sec_26_00000816----000-.html

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