Are you are thinking about the future, regarding what your family will do after you are gone? If so, you will want to think about the type of insurance that you have, which can provide them with the money that they will need to continue once you are gone. There are a couple of types of insurance that every family should have, especially the “breadwinner”, so as to provide his or her family with money that will no longer be coming in. This article will look at burial vs. term life insurance, two of the most important forms of insurance that you can have that should be owned by every person that is financially responsible for their family.
What Is Burial Insurance?
As the name indicates, this is a type of insurance that you need to have if you would like to provide your family with the money that will be necessary to bury you after you are gone. Funerals can be expensive, and to pay for the cost of your burial, as well as the casket, and also your grave site, this extra money will help. Most policies are for $10,000, which will easily cover the cost of most funerals today. The cost is usually about $10 a month, although it can be higher or lower depending upon the amount of the death benefit. The other type of insurance that you need is called term life insurance, which we will now present. In fact, this can be the most important type of insurance that any person can have that wants to take care of their family long after they are gone.
What Is Term Life Insurance?
This is a form of life insurance that has only a death benefit associated with it. It is different from whole life or universal life policies. If you have a whole life policy, for example, there is usually an annuity that is attached to the life insurance that will also be paid out at the time of death. The benefit of using this type of policy is that it acts as a savings account that people can use to borrow money from in times of emergency. However, if kept intact, it will earn interest over the course of time, and will give your family, even more, money at the time of your death. The problem with this type of insurance, especially in comparison to cheap term life insurance, is that it is costlier. Just looking at the numbers, it is much more affordable to get a term life insurance policy, as well as a much larger death benefit for your family, when you decide to go with term life.
Burial vs. Term Life Insurance
Most people have an insurance agent that they like to work with, one that can provide you with quotes on both types of policies. Sometimes quotes for burial insurance can come from a completely separate entity, companies that strictly deal with burial insurance, and the same is true for term life. It is recommended that you go online to submit your information about getting a quote on each type of insurance. This will allow you to find out who is offering the best deal. As long as the insurance companies check out regarding legitimacy, and having no complaints either on social media or through the Better Business Bureau, simply choose the one that offers the best monthly premiums.
Thinking about your death is not a fun or enviable topic, but it is one that every breadwinner should consider. This is true regarding providing your family with money after you are gone in the form of burial and term life insurance. Now that you know that burial insurance is specifically for the burial of your body, and term life insurance will be the money that your family will use in your absence, you should get multiple quotes today on these two absolutely essential forms of insurance that will be your way of helping your family after you have passed on.