Getting burial insurance in Alabama is straightforward if you have the right knowledge about it. There is a thin line between buying life insurance and burial insurance. Although, most people are more familiar with life insurance. Unfortunately, some people know little on burial insurance.
Yes, they are both related when it comes to the same topic. But, they offer very different benefits to you and your family. Here are the differences between life insurance and burial insurance. Later, we will break down the counties that offer burial insurance in Birmingham, burial insurance in Montgomery, and burial insurance in Huntsville.
Difference Between Life Insurance and Burial Insurance
Basically, life insurance centers on having your premiums for certain number of years. A common life insurance is term life insurance which is temporary. Some life insurance policies also include death benefits which beneficiaries can only use upon your death.
Meanwhile, burial insurance covers final expenses of the policy holder. Most insurance plans call this as funeral insurance. Further, this policy covers any costs associated with your funeral and final expenses.
Life Insurance Benefits and Options
Life insurance benefits pays a certain amount of money. For instance, your insurance policy includes a death benefit of $80,000. Then, your family or beneficiaries will receive a check for that balance upon your death. Moreover, they can pay for final expenses out of that check. They are also free to use it however they want. Life insurance have no restrictions on how they want to use the amount for.
Life insurance also offers plenty of options. You can choose a term life insurance or a permanent life insurance. Actually, whole life insurance is designed to be a lifetime policy. Meanwhile, term life insurance only covers you for a certain amount of time. Thus, the word “term.” Either way, you could buy term, live through the term and exceed benefits at a certain point.
Burial Insurance Benefits and Options
Burial insurance in Alabama is designed to cover your final expenses. Also, it is commonly called funeral insurance or final expense insurance. Further, this coverage may only be used to cover any costs related to your funeral services and other expenses. Actually, you will not receive a lump sum unlike life insurance. Unfortunately, you also cannot spend the amount however you want. Basically, you are pre-paying all your funeral costs before your death. Moreover, this type of insurance has strict restrictions. Such as, how the money can be used.
Unlike life insurance, burial is different in a way that it does not expire. It will exist until your death. In fact, it only pays out the lump sum when you die. And, it only pays for your final expenses. Therefore, you have no other options with burial insurance. Finally, it is only there for your burial.
Whole life burial insurance in Alabama policies pay a benefit on your death and accumulates cash value. You will have plenty of medical costs in your last months or years. Unfortunately, your health insurance may not cover some medical services. Luckily, you may be able to use your final expenses insurance in advance. If you have whole life insurance policy that accumulates cash value over time, then you may be able to access the cash value to pay for your medical needs.
Burial Insurance Payment Options: Immediate and Graded
Another thing to know is burial insurance has two payment options: immediate or graded. Moreover, there is a thin line between these two. In fact, the payment option you choose is meaningful as you pick the one that fits your situation perfectly. Let’s breakdown the difference between the two.
This works exactly as it sounds. Basically, this insurance pays out completely upon your death. Therefore, if you have $10,000 burial insurance policy, then that is what your family or designated beneficiary receives upon your death. Moreover, that is payable in one lump sum.
A policy that has graded payout works like this: the beneficiary is payed only a percentage of the full policy. Also, this is based on when it was purchased and when you die. For instance, the policy may payout 20% of full value if you die within the first year. Then, 50% when you die within the second year, 75% if you die in the third year, and full policy value pays out when you die after the fourth year. Therefore, a policy will only pay $2,000 if you pass within a year of the policy it was issued, and so on.
Finding Burial Insurance in Alabama and its Counties
You can find affordable, convenient and trusted burial insurance in Alabama. That also includes its cities and counties. Furthermore, here are lists of counties with burial insurance.
Burial Insurance in Birmingham
Further, here is a list of Birmingham Metropolitan Area (Birmingham-Hoover-Talladega) counties that have burial insurance:
Burial Insurance in Montgomery
Moreover, here is a list of Montgomery (including adjacent) counties that have burial insurance:
- Montgomery County
- Elmore County (north)
- Macon County (northeast)
- Bullock County (east)
- Pike County (southeast)
- Crenshaw County (southwest)
- Lowndes County (west)
- Autauga County (northwest)
Burial Insurance in Huntsville
Meanwhile, here is a list of Huntsville counties that have burial insurance:
(Other) Alabama Counties with Burial Insurance
Contact Inzur agents to get competent burial insurance in Alabama quotes. Further, they help seniors get the best insurance that fits their conditions and other factors. Finally, find a plan that assures you will never leave your family with the burden of unpaid funeral costs and medical debts. Call 1-888-999-0089 for more information on burial insurance.