Are you a resident of North Carolina? Have you thought about buying a life insurance plan to cover your funeral? Or have you recently started to worry about a loved one who is aging?
Covering the cost of a funeral can become a HUGE burden if not done properly. Some families are left scrambling at the last minute to collect thousands of dollars for a loved ones funeral. Doesn’t sound fun does it?
For those who do not have any kind of insurance coverage, they leave their families and friends in a tough spot and the stress from this financial burden can last for years.
However, in some cases the individual DID have an insurance plan. But, unfortunately, they did not have the right coverage or policy and the family finds out the insurance provider WON’T cover the funeral expenses.
Falling into either of those situations is stressful and can leave the survivors wishing the deceased had planned for their end-of-life expenses.
So how can you or a loved one plan to cover those expenses? How much coverage is needed? And, how do you make sure you have the right policy that won’t automatically cancel?
Read on to learn more.
NOTE: For a free burial insurance quote specific to the state of North Carolina click the Get A Quote Button or call 888 626 0439 and one of our friendly life insurance specialists would be happy to provide you with answers and a free quote in less than five minutes.
Quick Navigation Article Links
- How Does Burial Insurance/Final Expense Insurance In North Carolina Work?
- What Does Burial Insurance Cover?
- Final Expense Insurance Versus Life Insurance
- Average Funeral Cost In North Carolina
- Funeral Price Inflation In North Carolina
- If I Live In North Carolina Is Funeral/Burial Insurance Worth Having
- What Happens If I Do Not Have A Burial Plan In North Carolina
- Is There An Age Limit For Burial Insurance
- Our Favorite Burial Insurance Providers in North Carolina
- What Is The Cheapest Burial Insurance Plan In North Carolina
- How Much Burial Insurance Coverage Should I Get
- How Do I Buy A Burial Insurance Policy
- Terms To Understand When Talking About Insurance
How Does Burial Insurance/Final Expense Insurance In North Carolina Work?
Burial insurance is a type of insurance policy meant to cover ONLY end-of-life expenses. The payout can be between 2,000 to $50,000 depending on the coverage and provider you go with.
This plan is meant to ease the stress and financial burden the survivors face. It also gives peace of mind to the policy holder that when they pass their family can grieve without having to scramble to come up with the funds to bury the policy holder.
A burial insurance policy can cover one individual or cover a family. The policy can be flexible and customized to your specific needs.
Final expense insurance can also be called burial insurance or funeral insurance. All three of those terms will be used in this article to describe an insurance policy that covers burial expenses.
In North Carolina, final expense insurance can be sold online, through brokers or agents. Some funeral homes may sell burial insurance. Also, we at BuyLifeInsuranceForBurial.com can help!
To purchase burial insurance, your agent needs to know your health, age, and the level of coverage you would like. They can then use this to match you with appropriate options.
Once you purchase your coverage, you will need to select a beneficiary. This is a person who you trust to receive the benefits and use them the way you direct. This should be a capable and trustworthy individual. They should be healthy and young enough so that they will still be around when you pass.
What Does Burial Insurance Cover?
As mentioned earlier, funeral insurance is meant to cover end-of-life expenses. Your funeral, memorial, burial, service, and other related expenses are covered with a final expense insurance policy.
This kind of insurance covers any loose ends you may not have thought of. The benefit can even be used to cover unpaid medical bills or debts you left behind. It protects your family from going into debt!
Final expense insurance plans may cover:
- Cremation costs
- Burial costs
- Preparation Of The Body
- Funeral expenses
- Service Expenses
What’s The Difference Between Final Expense Insurance Versus Life Insurance?
So, final expense insurance is very similar to life insurance. How?
Both are insurance policies, both are paid out upon the policy holders death, both need you to choose a beneficiary. In some cases, a life insurance policy can include a “death benefit” or a payout to cover your end-of life expenses.
Read through the policy to confirm your plan offers this option.
How are they different?
Final expense insurance usually has less face value than a life insurance plan because it is only meant to cover expenses involved in a funeral and burial.
So your burial insurance policy may pay a benefit for $20,000, while your life insurance policy may pay out a benefit of $300,000.
Each policy has a different use, final expense insurance is to cover expenses incurred over a short period of time, funeral, burial, and memorial. Whole life insurance is to cover the lost income of the person.
Average Funeral Cost In North Carolina
The national average funeral cost for the service, flowers, burial, and plot is $7,000 to $12,000. The national average for cremation and a simple funeral service is $6,000 to $7,000.
Now compare the average funeral in North Carolina in 2021 which was $7,079. In North Carolina, the average cremation funeral in 2021 cost $5,848.
Keep in mind the casket, urn, headstone, burial plot, flowers, and transportation are separate from the service fees. These other expenses will cause your final price to go even higher.
Reference this chart to find out the specific products and service costs.
|Transporting the body to the funeral home||$350|
|Preparing the body||$255|
|Casket (simple wood casket)||$2,995|
|Urn (simple urn)||$300|
|Burial Plot (basic)||$1000|
|Funeral Facilities For Ceremony||$500|
Other expenses to consider when someone passes are travel expenses for the family and legal expenses if your family needs to hire a lawyer.
Even the simplest of funerals can add up to thousands of dollars. If you go for an all-out funeral with a large service.
Average Funeral And Cremation Service Fees In North Carolina By County
|Service Choice||Average Cost|
|Direct Cremation Service Fee||$2,145|
|Immediate Burial Service Fee||$3,804|
|Cremation Memorial Service Fee||$6,191|
|Full Burial Service Fee||$7,453|
|Service Choice||Average Cost|
|Direct Cremation Service Fee||$1,940|
|Immediate Burial Service Fee||$3,591|
|Cremation Memorial Service Fee||$6,002|
|Full Burial Service Fee||$7,351|
|Service Choice||Average Cost|
|Direct Cremation Service Fee||$1,768|
|Immediate Burial Service Fee||$3,618|
|Cremation Memorial Service Fee||$5,948|
|Full Burial Service Fee||$7,179|
|Service Choice||Average Cost|
|Direct Cremation Service Fee||$1,725|
|Immediate Burial Service Fee||$3,510|
|Cremation Memorial Service Fee||$5,570|
|Full Burial Service Fee||$6,825|
Keep in mind these are average funeral costs, this does not include upgrades, larger services/memorials, and left over debts and bills the deceased left unpaid.
There is another factor that affects price, inflation!
Funeral Price Inflation In North Carolina
Every year, without fail the cost of living rises. This is the case with end-of-life and funeral expenses too. Caskets, service fees, burial plots, and other products rise in price each and every year. So what would have covered your funeral 5 years ago will not cut it now.
Funeral expenses rise at an average of roughly 3.5% to 6.4% a year. So if a very basic funeral costs $7,000 in 2021, in 2031 it would cost around $11,000
However, during the COVID-19, the cost of caskets increased 20% to 30%. This is because they are usually shipped overseas. It is now more challenging to find the materials and ship a finished casket.
The rate of inflation can jump very quickly in times of low supply, high demand, or crisis. None of us can predict those circumstances.
Take a look at this chart which shows the estimated average inflation we expect to see in the next 30 years.
With average yearly inflation of 5%, by 2050, you can expect to pay roughly $28,000 for a funeral!
So, how can you be ready to cover those expenses? A burial insurance plan is the best option to cover known expenses and unknown costs and price jumps.
If I Live In North Carolina Is Funeral Insurance Worth Having?
As you saw, a full service funeral can cost on average $7,000. That is an AVERAGE and does not include leftover debts, a nice casket, flowers, unpaid medical bills, leftover credit card balances, and other expenses.
We haven’t even started on the legal fees to settle an estate! I could write another separate article on the legal aspect of settling estates…
A funeral insurance policy covers the known expenses, unknown costs, inflation, and gives you and your family peace of mind. Purchasing this policy can go a long way in preparing for your funeral. Your family will feel relieved when they know you are taking a proactive approach to your funeral.
But what if you already have money saved? Say you have $10,000 to $15,000 in the bank ready to cover your funeral expenses.
There are still many things that could go wrong, what if your family has trouble accessing the funds? What if your funeral costs more? What if you get sick or have an accident and have to use those funds?
There are too many unknown and uncontrollable factors to count.
Consider the following factors when deciding if you want burial insurance:
- Your current financial situation
- Any current life insurance plan you may have
- Your family members financial situation
- The services and items you want at your funeral. As mentioned before a very simple funeral will easily reach $6000. A large funeral with many upgrades will easily reach $20,000.
- The money you have already saved/set aside
- Legal and estate settlement costs
- Unpaid debts
- The unknown expenses and fees you are not aware of. These can catch surviving family members by surprise.
Once you know the ballpark estimate of your funeral, burial, and other end of life expenses you have an idea of the coverage you would need. Even then, it is still a wise idea to go $5,000 to $20,000 over to make sure inflation, medical bills, and any outstanding debts are covered.
What Would Happen If I Do Not Have A Burial Insurance Plan In North Carolina?
If you do not have a burial insurance plan or any kind of life insurance your loved ones and family members will have to find the money to cover your funeral.
This would create a very stressful situation for those left behind. They would need to collect a minimum of $6,000 to hold even the most basic funeral.
If your family cannot collect that amount needed to cover your funeral expenses then they will have a few options.
- They could cremate the remains and the funeral home would dispose of them. They would have to forgo a service and any upgrades.
- If there is any money left in your estate the family could use it to cover the expenses.
- They could go into debt to cover the expenses. They could take out a loan or a funeral loan. A funeral loan has high-interest rates.
- They could find an assistance program in their state that helps cover the cost of your funeral.
When a family has absolutely no way to cover the funeral, they may choose to sign over the body to the state or abandon the body. This allows the state to bury the individual in whatever way they see fit.
The family would not be able to make the final call or decide how, where, or when the body is buried. The state may try to respect the families wishes, but ultimately the family loses control when they have to abandon the body.
What Is A Pauper’s Grave?
A paupers grave is the term used for burying an unknown body or a body that has been signed over to the state. This can happen when a body is found and cannot be identified or if a family does not have the funds to cover the expenses of burying the body.
The body can be buried or cremated and either disposed of or buried in a plywood casket or cloth bag. A person buried by the public may have to share the same burial plot with someone else.
When the local government has control over burial, they could decide to bury the body in a mass grave. This is by far the worst way to bury any individual. It leaves no room for the family to grieve privately.
Click this link to read more about a pauper’s grave.
Is There An Age Limit For Burial Insurance?
Generally, insurance companies will accept an application to insure someone between the ages of 45 to 85.
However, there are plans available to individuals outside of those ages. People can be insured as young as 0. Each insurance provider has different limits and qualifications.
If you are interested in insuring yourself or someone outside the ages of 45-85 give us a call and we can provide you with your options. There are life insurance policies available for children that may include a death benefit.
Our Favorite Insurance Providers In North Carolina
Our favorite insurance providers in North Carolina are:
- Great Western
- AIG American General
- Mutual Of Omaha
Great Western offers guaranteed issues which is GREAT for individuals who have health issues or would have trouble normally getting accepted.
You can start the application process online, complete the process, and then you call into a third part line to complete the application. The application is very simple and straightforward.
The coverage limits are between $1000 to $40,000 with age limits of 40-80 years old. They accept debit/credit, direct deposit, and Direct Express.
This is a great option for people with serious health conditions and recent hospitalization.
AIG American General is also a guaranteed issue provider, also very good for individuals who may have trouble being insured or have health issues. Available everywhere except Maine and New York.
There is no full coverage until two full years have passed. This is usually used as the last carries someone tries when no other company will insure you.
The age is 50-80 years old, you can complete a paper or electronic application. The e-app is very simple and convenient. It does, however, require an electronic signature.
The minimum is $5,000 to $20,000. This is usually the best product on the market for guaranteed issues with competitive rates.
They accept all forms of payment direct express, bank account, and other forms.
Mutual Of Omaha offers coverage of up to $2,000 to $40,000. They accept bank drafts only and have a convenient e-app. The age limit is 45 to 85 years old.
The application process is quick and straightforward and can be done online.
Mutual Of Omaha does have a two-year look back on cardiac events, and it will accept certain cancer medication use and blood thinner use. As long as diabetes was diagnosed after 50, they may accept you.
They have competitive pricing and a convenient application process. This carrier is a good choice for moderately healthy individuals with no recent/serious health issues.
The only downside, once you sign up for a policy Mutual Of Omaha will continue to offer you other policies and add-on options. If you want to opt-out of these offers you need to send back a form that opts you out of these promotions.
What Is The Cheapest Burial Insurance Plan In North Carolina?
The cheapest burial insurance policy or any policy for that matter is based on your health and age.
If you are in good health and between 45-85 chances are you will have a VERY good priced policy. But for those who are unhealthy, have an illness, or are regularly hospitalized, your premium and fees will be higher.
Click the Get A Quote Button to find out the cheapest burial insurance available to you or call 888 626 0439 and one of our agents would be happy to provide you with answers and a free quote in less than five minutes.
How Much Burial Insurance Coverage Should I Get?
Burial insurance should cover the expected fees and costs of a funeral this year and in the future. It must take into account current rates, inflation, and give some wiggle room for unexpected expenses.
We have seen prices jump as high as 30% for some products and burial-related expenses because of low supply.
In North Carolina, it is a smart idea to have coverage between $10,000 to $20,000, if you are older.
If you are younger you need to start with at least $20,000 and slowly increase your coverage periodically. As we saw in the chart, by 2050 it is very likely funerals will cost around $28,000 so your plan will need to slowly increase to match the rate of inflation.
Make sure you know the kind of funeral products you would like, the service you want, and how you want to be buried. This will help determine the coverage amount you need.
How Do I Buy A Burial Insurance Policy?
In North Carolina, you have the option of buying insurance online or with an agent.
If you work with one insurance provider who assigns one of their own agents to help you, they will not provide you with price comparisons for other companies.
We provide insurance assistance and our agents are available to answer any questions you have. Our insurance agents will do the shopping around for you and provide you with ALL of your options. Give us a call to get a free quote and learn the options that are available to you.
For a free burial insurance quote specific to the state of North Carolina click the Get A Quote Button or call 888 626 0439 and one of our friendly life insurance specialists would be happy to provide you with answers and a free quote in less than five minutes.
FAQs About Getting Burial Insurance In North Carolina
What If I Have Pre Existing Health Issues, Can I Still Be Covered?
100%, anyone can be insured. All we need to know is your age and health information and we can match you with a provider who will insure you.
The more details you provide us, the faster we can successfully match you with the best policy available.
Even if you have had health issues recently, you will qualify for some kind of final expense insurance.
There are Guaranteed Acceptance policies. These policies ask no questions and guarantee coverage acceptance. Contact one of our agents by clicking the Get A Quote Now button or calling 888 626 0439.
What Questions Will I Be Asked?
When applying for burial insurance you may have to provide your medical history and some personal information. The applications are not usually very extensive and you can generally just tick off a box to answer the question.
Some applications have as little as two questions while other application forms ask upwards of 10 questions.
Some questions are considered “knock out” questions, which means if you check “yes” then you are automatically rejected. There is, however, a type of plan that has NO “knock out” questions.
What Is Guaranteed Acceptance/Guaranteed Issue?
This is the type of policy I have touched on through the article. Guaranteed Issue or Acceptance means you will be accepted automatically upon completing your application.
No questions asked, as soon as your application you will be accepted. Not every provider offers guaranteed acceptance. Guaranteed Issue is a good plan for someone with many health issues.
What Else Should I Prepare In The Case Of My Death In North Carolina?
Preparing a will, funeral wishes documents, and simplifying your estate can go a long way. Getting your affairs in order can save your family years.
If you put a few foundational factors into place and prepare ahead of time your family will no doubt appreciate your wisdom and forethought.
Make sure to visit a local lawyer so your legal documents meet the North Carolina laws.
The basic things to consider are:
- Will, clearly delegate assets.
- Funeral Expenses, provide savings, burial insurance, or pre-need insurance.
- Estate settlement costs and legal fees
- Assets you currently own and the upkeep involved.
- Collect your passwords and important documents in a safe place that can be located by a trusted family.
Can I Have Multiple Burial Insurance Policies At The Same Time?
Yes, you can. There are no legal limitations to the number of life insurance and/or burial insurance policies you can hold. As you age and grow your circumstances, income, and lifestyle change.
You can decide to purchase a higher coverage insurance policy later in life or add on to your current policies.
You can own a whole life insurance policy, an additional policy to cover your income and family’s needs, as well as a final expense policy. The amount of policies you hold is up to you.
The only factors you will need to consider are the amount all your policies add up to. You need to financially qualify for the level of combined coverage you have.
You may decide to purchase a policy rider instead of a completely separate insurance policy. This can reduce the hassle involved.
Terms To Understand When Talking About Burial And Final Expense Insurance
Death Benefit – a one-time payment from your life insurance provide upon the policy holder’s death. In some cases, this can be considered Final Expense insurance but not always.
Beneficiary – the person you designate the benefits and payouts to go to.
Lapsed – when the policyholder fails to pay the premium.
Term – the period you are covered by your insurance policy. This could be 2 weeks for travel insurance or 45 years for life insurance.
Premium – the amount you are required to regularly pay the insurance provider to keep your coverage.
Policy Rider – extra coverage you can add to an existing policy. If your circumstances change, getting a policy rider will allow you to increase your coverage.
Term Life Policy – this is life insurance that provides insurance coverage at a fixed payment rate for a set period. You lock in the premium you will pay for an agreed-upon amount of time.
Whole Life Insurance – a life insurance policy that will stay in force for the entire life of the policyholder. The premiums are fixed and death benefits are not usually offered with this insurance plan. Sometimes called straight life, ordinary life, permanent life insurance, or whole of life assurance.
Universal Life Insurance – this is a type of insurance policy mainly sold in the United States. This is permanent insurance that stays active as long as the policyholder pays the premiums. This policy offers flexible premiums and death benefits. This insurance also has a cash value factor.
Pre-need Insurance – this is an option where an individual pays a funeral home for their funeral costs before they pass. The individual can choose their service, casket or urn, and other details.
Insurability – this refers to whether or not an individual qualifies to be insured under a policy.