Beyond the Grave: Burial Insurance vs. Life Insurance Explained
Have you ever seen a commercial featuring a friendly, silver-haired celebrity talking about “burial insurance”? These ads are targeted towards seniors, but what exactly is burial insurance, and how is it different from life insurance?
A Look Back: The Roots of Burial Insurance
Believe it or not, burial insurance has a long history, dating back to ancient Greece and Rome. Back then, “burial clubs” were formed where members pooled resources to ensure a proper burial for themselves and their loved ones. Fast forward to the present day, and burial insurance serves a similar purpose: covering the costs associated with a funeral and burial.
The Rise of Life Insurance: Beyond the Final Farewell
Life insurance, as we know it today, actually sprouted from these early burial insurance policies. Originally, life insurance simply covered burial expenses, but over time, it evolved to encompass much more. Today, life insurance can help your loved ones cover a wider range of expenses, including:
- Debt left behind by the deceased
- College education costs for children or grandchildren
- Leaving a financial legacy
Why Burial Insurance Still Exists
So, why is burial insurance still a thing, especially when it comes to senior citizens? There are a couple of reasons:
- Familiarity: Many seniors remember a time when life insurance primarily covered burial costs. They may also recall their parents paying small, weekly premiums for burial insurance.
- Limited Needs, Limited Options: Unfortunately, some seniors may not have enough life insurance to cover much beyond final expenses. Additionally, securing a substantial life insurance policy at an older age can be very expensive.
The Power of Early Planning
This is where planning ahead comes in. The younger and healthier you are, the more affordable and comprehensive a life insurance policy can be. For example, a young adult might pay a few hundred dollars a year for hundreds of thousands of dollars in coverage, while a senior might pay several times more for a fraction of the coverage.
Speak to an Expert: Get a Quote Today!
Our independent insurance agents are here to help! They can show you real-life examples of how life insurance costs increase with age, and help you determine the right amount of coverage for your needs. Don’t wait – contact us today for a free, no-obligation life insurance quote, and secure peace of mind for yourself and your loved ones.
