I have Burial Insurance from Work, Do I need my own?

Pros and Cons of Burial Insurance Work Benefit

When one works at a corporate job or any job is an employee work benefits are important to be aware of and take advantage of. For example health insurance, 401K plans, (I unfortunately have come across too many people that don’t take advantage of their companies 401K match. But that’s for a different discussion.)

 among some of the work benefits, some companies or organizations offer and pay for burial insurance for their employees. With that usually is part of an umbrella policy where they’re covering a whole group of people and it’s backed usually buy a Term Policy so it doesn’t cost the company very much and in most cases they don’t even pass that cost down to the employee.  what I’ve seen is companies offering or having available 10-20 sometimes up to $40,000 of  final expense available to each of their employees. In the event that the employee dies while on the job.

Nine out of 10 of the policies that I have reviewed, are set up in such a way when that employee gets fired, leaves, or retires, (no longer at the company working as an employee) , that benefit is no longer available.

 so when some individuals meet with a burial insurance specialist to discuss their needs and what options they may have. Every so often the prospective applicant mentions that they don’t really need so much or they don’t really need burial insurance because they have some at work.

 And that’s amazing.

 But similar to the philosophy that you can’t count on term life insurance for your final expense needs. Because that is not guaranteed. And that may expire before you need it. SO2 one cannot, or it would be a response 2 rely on that insurance exclusively.

 For example if the conversation with this person who has work burial insurance with taking place while the employee was 55. at age 65 when they’re looking to retire and their health situation has deteriorated. They may not be able to get and affordable burial insurance plan and most companies depending on the individual situation may deny them coverage. (there are companies out there that offer guaranteed issue burial policies. Which we at select burial insurance do have access to. But it’s more expensive. And I’d rather have my customers save money and get more burial insurance overall without having to face the extra expense.)

Now, if money is tight and getting comparable burial insurance back by whole life may not be within your budget. I would make the following two points

1. Fixed Income: When you are at the point of retirement you’re probably not going to have a bigger budget. You’re going to definitely want to watch your monthly expenses to make
2. insurance plan at that point maybe so much more expensive. There may be more to lose by waiting.

The one solution I offer is can I please get some burial insurance now and get the rest of it at the point when you retire and leave work. So that you have a balance of a economical and a more expensive plan together will definitely save you money over time.