A funeral is something people don’t tend to think about due to the emotional side of it. But it is a reality that will eventually arrive. It is then that people find themselves unprepared in terms of the expenses associated with it. Burial insurance mitigates that problem.
A lot of players have a lot of options in the market. Does StateFarm offer burial insurance is a common question from people familiar with the brand? The answer is yes. There is a burial insurance option made available by State Farm.
The Options on Offer
Different providers give different benefits to their burial insurance plans. The “does State Farm offer burial insurance” question must be followed by “what options does it give me?” to get the real advantage in your decision-making process. And there are a few State Farm offers which some, if not many, could find useful.
The Whole Life Insurance Option
Burial insurance comes in two types: term insurance and whole life insurance. Term insurance plans are the regular type of insurance plans. They contain a premium payment and coverage tenure that is fixed. The former will increase during the period while the latter expires after it.
On the other hand, whole life insurance plans are designed to last the insured’s entire lifetime. Burial plans of the whole life variety cover the expenses associated with the person’s funeral procedure guaranteed. They might offer to pay the service providers directly or pay any designated beneficiary of the insured the coverage amount.
The beneficiaries are then free to use that money; however they wish. They could even pay pending medical bills, and the insurance company will not question it.
The Option of Guaranteed Acceptance
All term insurance policies require the person being insured to take a medical exam, which you need not do in the case of a whole life insurance policy. The more official/formal name for this is Guaranteed Acceptance.
This benefits the target market immensely, as it comprises senior citizens who are likely to have some health issues. That could compromise their chances of getting a good deal regarding price and coverage amount with other insurance policies.
This type of policy comes with a waiting period, usually of the 24-month duration. The coverage starts after the waiting period. There is also a medical history questionnaire to be answered by the insured. The person’s eligibility is determined based on those answers.
State Farm is known to be the most exclusionary when it comes to health-history based selection. Many others will give the option of eligibility for conditions that State Farm rejects.
The Option of Fixed Premiums and Coverage
As with any whole life policy, State Farm fixes the premium amount at the point of accepting your application. A host of factors will determine the amount to be paid. But once set, it remains the same for the payment period.
The same goes for coverage. The maximum benefit on offer is $10,000. The chosen amount will remain constant no matter what and doesn’t expire or depreciate, unlike term insurance policies.
The Option to Continue Using Tobacco
Tobacco product users, by far, are most affected during the time of insurance purchase. The habit of either chewing or smoking tobacco is a definite path to cancer, and insurance companies anchor on it for their benefit. Even non-habitual users are charged increasingly high premiums in term policies due to it.
State Farm’s burial insurance, though, under its guaranteed acceptance policy, ensures even habitual users. And the user will not be questioned, but the premiums will be fixed at a higher rate than non-smokers.
The Option of Assured Transaction
State Farm is a giant, being placed in 33rd spot in the Fortune 500 list, and has been around since 1922. They have high ratings across the board, meaning your money will be safe and your returns guaranteed.
State Farm does offer competitive burial insurance. Whether it is the one for you is the option left for you to choose.