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Key things to know about burial insurance

Planning one’s own funeral can be challenging and very uncomfortable. Yet, preparing financially for this inevitable event is essential. It alleviates the burden on one’s family and adds to their peace of mind. Getting a burial insurance policy is one way to meet the costs associated with the funeral, burial, and other end-of-life expenses. Read on to learn about the types of burial insurance, the coverages included, and the factors to consider when signing up.

Types of burial insurance
There are three popular types of this insurance plan:

Simplified issue life insurance
Individuals do not need to appear for a detailed health examination when applying for this plan. However, they would still need to answer a few health-related questions. The insurance company may not accept one’s application if they have pre-existing health issues or participate in high-risk activities that could be life-threatening. Still, this insurance type is sought-after because of swift approvals and relatively higher coverage amounts.

Guaranteed issue life insurance
This plan neither requires applicants to answer health-related questions nor appear for a health examination. If the applicant is between 50 and 85, they will likely be approved. However, this policy has a waiting period. Beneficiaries may not receive the full sum assured if the insured passes away due to natural causes during this period.

Pre-need insurance
Many funeral homes offer this insurance policy. Here, a pre-decided sum is directly given to the funeral home after the policyholder’s passing. The funeral home uses the amount to ensure the services requested by the policyholder are carried out seamlessly.

Coverages offered by burial insurance
Burial insurance policies offer the following coverages:

Funeral service costs, which include expenses for embalming the body, hosting memorial services, and hiring a hearse
Burial or cremation costs, which include the cost of an urn, a burial plot, a casket, and cremation services
Settlement of pending hospital bills
Settlement of outstanding debts of the policyholder, such as loans and unpaid bills
Any unexpected expenses that may arise during the funeral procession.

Tips for purchasing burial insurance
These tips can help one pick the right plan:

Calculate all the expenses associated with the funeral
One must get an estimate of all the funeral-related expenses before purchasing insurance. The location and type of burial or cremation can influence the cost.

Shop around
One must research multiple insurance providers and their policies before choosing a suitable option. The rates, coverage limits, and other policy features, like waiting periods, vary among insurers. By comparing policies from different providers, individuals can make an informed decision.

Plan the payment of premiums
Another important factor when purchasing burial insurance is planning how to make the premium payments. Individuals can choose to pay the premiums annually, quarterly, or monthly. Some providers may also allow one to make a one-time lump sum payment.

Consider the waiting period
If the policyholder passes away during the waiting period, they do not receive the complete sum assured. This period may differ between providers. Before purchasing a burial insurance policy, one must consider the waiting period.

Consider the age limit
Individuals should also be mindful of the age limit for being eligible for the burial insurance policy. The age limit usually ranges from 50 to 85 years; however, different insurance providers may impose different eligible ages for applicants.

Top automated investing services that make investment easy for all

Automated investing services or Robo advisors are becoming popular by the day, and financial experts around the world only expect to see a surge in their usage. This is because these intelligent services offer one crucial advantage that many investors benefit from: low-cost financial advice. With many top financial services companies jumping in the race to provide customers with the best automated investing services, there are plenty of great options available for every kind of investor.What is a Robo advisor and how much does it cost?A Robo advisor is a digital platform that provides algorithmic-driven money management services that require virtually no human supervision. It does this by collecting client data like financial situation, future goals, and other details through an online survey. This data is then used to automatically manage clients' assets and provide them with the most suitable financial advice. Robo advisors are immensely cheaper than human financial advisors. Most services only charge an annual management fee that is anywhere between 0.25% and 0.5% of the account balance. Depending on your need, you can even find good Robo advisors that offer services free of charge and low minimum balance value. Top Robo advisors in the marketThere are several low-cost Robo advisors that you can choose based on your needs and preferences. Here are some of the best automated investing services or Robo advisors available in the market today.BettermentBetterment is one of the oldest and the most popular players in the industry. It allows clients to invest in a range of funds chosen for you to improve returns. It offers automatic rebalancing, tax-loss harvesting, a personalized retirement plan, and can even sync your outside holdings like bank accounts and any other investments. At extra cost, you can up your investing game by talking to a certified financial advisor on the phone.Management fee: 0.25%Account minimum: $0https://www.betterment.com/investing/SoFI InvestA go-to choice for student loan refinancing, SoFi has now expanded its services into automated investing with its user-friendly investment management system. The company provides goal-based planning, automatic rebalancing, and diversifies your money to help reach your financial goals. Plus, youâll receive member benefits like career services, discounts on SoFi products, and the opportunity to speak to a human advisorâeverything at zero cost. Management fee: noneAccount minimum: $1https://www.sofi.com/invest/automated/WealthfrontWealthfront is one of the largest automated investing companies that offer both short and long-term financial goal planning. Its software builds a diversified portfolio of low-cost index funds to improve your returns and offers time-tested investment strategies that automatically look for profitable opportunities. Management fee: 0.25 percentAccount minimum: $500https://www.wealthfront.com/Charles Schwab Intelligent PortfoliosCharles Schwab is one of the most trusted financial services companies that launched its own Robo advisor that helps build, monitors, rebalances a diversified portfolio based on your goals, and provides 24/7 customer support from US-based service professionals. With Schwab, you are not charged any advisory fee or commission and can invest in a portfolio of low-cost exchange-traded funds (ETFs).Management fee: noneAccount minimum: $5,000https://intelligent.schwab.com/

5 credit card habits to steer clear of

Credit cards have made transactions incredibly convenient, as users can choose to pay later for any purchase. Such flexibility ensures that oneâs purchasing power does not depend on one's bank balance. Today, several credit card companies offer attractive benefits on purchases, including cashback and reward points, and have emerged as highly lucrative for users. However, one needs to exercise some caution while using credit cards. So, here are some credit-card habits to avoid: Applying for many cards at once Users often have multiple credit cards to split large expenses so that there is sufficient credit available for each card. However, applying for multiple credit cards successively can trigger multiple inquiries, which can negatively impact the credit card holder. So, it is best to avoid applying for multiple credit cards simultaneously. Not making timely payments Delaying credit card payments repeatedly can affect oneâs credit score, which can cause problems with securing loans. In most cases, banks either reject loans or charge high-interest rates for those with poor credit scores. Many employers also reject candidates with a negative credit report. Paying credit card bills on time can help improve oneâs credit score. Frequently paying through EMIs Equated monthly installments (EMI) allow users to repay credit card debts flexibly in parts over a specific time frame. Most credit card companies offer EMI options for usersâ convenience. However, EMIs entail monthly interest in addition to the principal amount, leading to overspending. The best bet is to apply for an EMI only in case of large expenses. Closing a credit card Closing a credit card can affect oneâs credit history, especially if the card is old. For example, if one owns two credit cards with credit histories of three and four years, the total credit history comes to seven years. But closing the card with four years of credit history would reduce this total to three years. So, it is best to avoid closing credit cards. Not having sufficient credit available Sometimes, one may have to use the entire credit limit of a card for large expenditures. However, using the entire credit limit frequently can reduce oneâs credit utilization rate, which is the percentage of credit used out of the total credit provided to the user. Hence, one should avoid using over 30% of the available credit each month.