Although both life insurance and burial insurance provide a lump-sum in compensation (upon the holder’s death), many people are still unsure of what option to go for. Although the two policies may be almost similar, each has advantages and benefits, most of which vary from one person to the other. If shopping for life covers and torn between life and burial insurance, you should then take some time to learn what you or the beneficiaries will benefit from either of the policies.  Discussed below are some of the main differences and benefits of both life and burial insurance policies.

Burial Insurance Versus Life Insurance: The Benefits

Compensation

The advantages of going for life insurance outweigh what your loved ones will get from a burial insurance policy. Life cover often includes both funeral arrangements, and also provides a lump sum to the beneficiaries once the policy holder passes on.  The death benefit is mostly much higher than the funeral costs, meaning recipients can use the remaining amount to pay for utility bills, mortgages, or even school fees.

Burial insurance on the other hand only covers the funeral costs. In other words, you will only be pre-paying for your funeral. The only benefit in this is that your loved ones won’t have to pay for anything, as the insurance policy covers everything. Burial insurance also comes with several restrictions about the funeral, especially with the budget.

Affordability

To some extent, life insurance is considerably more affordable than burial cover. If you are in good health with no terminal illnesses, life insurance premiums will be significantly much lower. The other food thing about life cover is that you can get the insurance while at a tender age, which again helps lower the premiums even further.  A medical exam is however required before these premiums can be calculated.

Although burial cover may not be as affordable, it comes with other unrivaled benefits. The main advantage in this is the fact that, no medical exam is required.  Your health condition is much an issue for the insurance company, meaning this could be the most accessible cover especially for those who don’t qualify for life cover.

Eligibility

Almost everyone is eligible for burial insurance. As mentioned earlier, a medical exam isn’t required for one to buy burial insurance cover. With many people unable to find an affordable life insurance policy, funeral cover, is the only viable and best option there is.

A medical exam is required for one to get life insurance cover.  For those without any health issues or terminal illnesses, this is the best policy for them.

Cash Value

It all comes down cash value when comparing burial insurance versus life insurance. While there’s no cash value tied to burial insurance, life insurance allows you to accumulate some good money over time for as long as insurance premiums are paid on time.  Although you could lose some of the death benefits, the cash collected would be much more than the death benefit.

If you qualify for life insurance, your loved ones will benefit more from it as compared to burial insurance. Nonetheless, burial insurance comes in handy for persons with terminal illnesses and/or life-threatening health condition.