While deaths and funerals are a sensitive and challenging topic, it is essential for one to be aware of burial insurance. As the name suggests, this insurance policy is designed to cover the expenses of an individual’s burial (or cremation), thereby reducing some financial burden on the person’s family and loved ones. Before proceeding to purchase a burial insurance policy, there are certain aspects that one must know about, such as the points given below.

The types of policies
There are three popular insurance plans that offer coverage for the costs of burials, cremations, and funeral services. These are:

Simplified issue life insurance
To secure this policy, one need not undergo a medical exam; however, they would need to answer certain questions about their health. If the individual has any pre-existing conditions or participates in life-endangering activities, they may not get approval for the policy.
Guaranteed issue life insurance
Securing this policy does not require any screening examinations or answering questions. If the applicant’s age falls into the specified age limit, which is usually between 50 to 85 years, they will get approved for the policy. However, this policy comes with higher expenses.
Pre-need insurance
Funeral homes usually sell a pre-need insurance policy, so the sum from it can be directed to cover the funeral service costs of the individual right away.

Types of coverages
Burial insurance policies may offer coverages for the following:

Funeral service costs, including the expenses for embalming the body, memorial services, hearse, etc.
Burial or cremation costs, including the expenses for an urn, burial plot, etc.
Paying the pending healthcare bills of the policyholder
Settling loans or other outstanding debts of the policyholder
Other unexpected expenses

The waiting period
Before purchasing a burial insurance policy, an individual must note that some policies have a waiting period. This means that if the policyholder were to pass away during the specified waiting period, their beneficiaries would not receive the complete sum assured.