The topic of death is often one that is hard to think about. However, it is important that you plan ahead in order to save your family the financial burden of your passing. Below are the 8 most common questions about final expense insurance.

1. Will my burial expenses really be covered by term insurance?

Unfortunately, most burial expenses will not be covered by term insurance. The problem with term policies is that they only cover you for a particular amount time (normally 5 to 15 years). Most people live longer than their term policy and therefore have no benefit once they pass on. Alternatively, burial insurance policies cover you for your entire life.

2. What about “Guaranteed Issue” (aka. “Non-Medical”) life insurance? Is it a good option?

Whenever you hear the phrase “no medical questions” or “guaranteed acceptance”…keep your guard up since its usually a scam. Some life insurance sites say this is the best option, but this is simply contrary to the facts. There is a “deductible” (or waiting period) of 2-3 years before your full benefits start, while full coverage plans offer “immediate” coverage. Unless you are the pinnacle of health…I would not advise you go this route.

3. Who is allowed to receive the death benefits of my policy?

Generally, you can choose a relative, spouse, someone with a vested interest in you (like a business partner), a charity, or even a close friend.

4. What if I get sick after I’m covered. Can companies cancel my policy?

A change in your health will not cancel your policy. However, you must take note of when your premiums are due in order to keep your coverage.

5. Can the benefits that are paid on my burial insurance policy be used for things other than burial expenses?

Yes. The person (or charity) that receives the benefits has the sole discretion on how the funds are to be used. They are generally used only for burial expenses, but they can be used for anything if desired.

6. Is a “Guaranteed Issue” (or “Non-Medical”) plan the only type of burial insurance that is offered?

There is a large selection of products available for your burial needs. Most of them do not have those pesky waiting periods, like guaranteed issue does. Most burial insurance polices have immediate, first day coverage with very few medical questions. Also, many do not require a medical exam.

7. Why is burial insurance more money than term insurance?

This is because of the fact that a burial plan covers you for your whole life. It can also not be canceled if you simply pay your premiums. Term plans cover you for only a certain amount of time. Once that period ends you have absolutely no coverage, they will not pay any benefits after the term has ended. Most individuals live longer than their term policies. You cannot outlive your burial insurance policy. This is why exclusive life insurance leads are so popular, it is by far the better choice.

8. Are you allowed to purchase a life insurance policy on a parent that already has life insurance?

Yes, usually this is fine.

If you are looking for burial insurance for someone in your family that has a critical illness, then you may want to look at critical illness cover insurance instead.