What Is A Burial Insurance Policy Illustration And What Does It Show?
In most cases, an illustration is a document provided to you during the buying process before you formally apply. It outlines all the pertinent policy details so you know exactly how it will work up front.
Every company will format a final expense insurance policy illustration uniquely but will show, at minimum, the following values:
- Premiums for each policy year
- Policy type and length
- Payable death benefit for each policy year
- Cash value chart for each policy year
Illustrations provided prior to applying may also show nonforfeiture valuesNonforfeiture Values
The specific monetary values for the various ways the policyholder can retain some benefit(s) should they cancel the policy or when it lapses due to non-payment. Nonforfeiture options include reduced paid-up insurance, extended-term insurance, and cash surrender value. Every company offers some or all of these options for any policy that accumulates cash value. (it varies by company).
If you have a current policy, you can request an “in-force illustration,” which would show all those values above and the nonforfeiture values.
Here Are Some Real Final Expense Insurance Policy Illustrations
Below are some sample illustrations for burial insurance policies ranging from $10,000 to $50,000. Please note that these illustrations are for specific ages (50, 60, 70, & 80).
If you request an illustration from any company, it will be based on your specific age among other factors.
$10,000 burial insurance policy illustration
Below is an illustration for a burial policy with a $10,000 death benefit.
$15,000 burial insurance policy illustration
Below is an illustration for a burial policy with a $15,000 death benefit.
$20,000 burial insurance policy illustration
Below is an illustration for a burial policy with a $20,000 death benefit.
$25,000 burial insurance policy illustration
Below is an illustration for a burial policy with a $25,000 death benefit.
$50,000 burial insurance policy illustration
Below is an illustration for a burial policy with a $50,000 death benefit.
An Illustration Is Not A Binding Policy
It’s vitally important to understand that a pre-application burial insurance illustration is not a binding policy. Rather, it should instead be viewed merely as an advertisement.
An insurance policy is a ratified legal contract between you and the insurance company that outlines the terms of the agreement.
To get a policy, you would have to actually apply, and the insurer would have to accept you after completing the underwriting process.
Now, hopefully the policy you get after formally applying (assuming you’re approved) matches the illustration you saw beforehand.
However, if the policy differs in any way, it means something changed in the underwriting process. If that happens to you, call the insurer immediately and ask why something changed. Know that you have the right to back out and get a refund of any premiums paid.
Final expense insurance illustrations (or any type of life insurance) are very helpful for gaining a clear understanding of the policy.
It’s wise to request one from any insurance company that offers them. However, never rely on them as proof of how your coverage works.
Frequently Asked Questions
Many insurers offer illustrations for final expense insurance policies, but some do not. If a company does not provide a formal illustration, you can still ask them to email or mail you the pertinent policy details, including cash value estimates. That way, you have something in writing that shows how the policy works.
All whole life burial insurance plans will build cash value. You can use this money while you’re alive if you choose to. Furthermore, if you cancel coverage at any time, the insurer will refund the cash value accumulated to date. Please note that term life final expense policies do not build cash value. No type of term life insurance does.
There is no publicly available data regarding cash value growth for various final expense insurance companies. That said, all of these products have a very similar rate of cash value growth, so it’s a rather moot variable to consider when deciding which company to go with.
Burial insurance, also known as final expense insurance, is a small whole life policy designed to cover your funeral expenses. While typically meant to cover funeral costs, the payout money can be used for any purpose, such as debts or outstanding medical bills. These policies often cap coverage at around $50,000, but some companies do offer higher amounts. The underwriting is very lax, so seniors with health issues will still qualify. No medical exam is required, and some policies don’t even have health questions. Ultimately, when you die, the insurer will typically pay out the money within 24-48 hours, so your family can carry out your funeral and not be burdened by these expenses.
- Nationally licensed life insurance agent with over 16 years of experience.
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 16 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 20 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 20 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 15 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 15 years of experience. He has personally helped more than 1,500 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest YouTube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 20 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 20 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 15 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 15 years of experience. He has personally helped more than 1,500 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest YouTube channels to help aspiring insurance agents serve their clients better.
