It is never easy to find a suitable life insurance policy on your own, especially if you are a person over 50 years old. Most of the life insurance companies offer a type of life insurance, which is known as Burial Life Insurance. Keeping the elderly in mind, this type of life insurance plan has been specially designed for them.
Burial Insurance is also known as the funeral or the final expense insurance and is a great life insurance option for the people 50-85. It helps to pay for the costs related to the funeral to help ease financial and planning burdens for the loved ones of the policyholder.
Different burial insurance plans range in price from as low as $18 to a maximum of around $286 monthly for people over 50-85. The plans basically depend on their age, health condition, sex, and how much coverage they actually want.
Like the traditional policies of life insurance, these funds can also be used to pay any type of outstanding debts that are owed by the deceased after passing away. Choosing the right final expense insurance plan is a personal decision& when choosing the best program, it is important to consider needs & coverage.
Planning for funeral insurance
Life has no guarantees, especially for people over 50-85 years old, for whom funeral insurance should be part of their end-of-life planning process. The final arrangements can be expensive and could thus put quite a huge financial burden on the loved ones of the deceased.
There is no doubt that no one should have to endure such a strain when they are grieving the loss of their beloved, either a family member or a friend. It is better to add funeral insurance planning in your to-do list when making other end-of-life plans, in order to make the process easier.
People make different end-of-life plans, and their list includes creating a will, adding or updating the beneficiaries to their financial accounts, transferring the ownership of their property or any other type of assets, and creating a power of attorney or trust documents.
Why should people over 50 opt for Burial Insurance?
It is a known fact that an average senior funeral plan costs around $10,000 or more; therefore, it becomes a significant financial burden for the ones left to cover the costs. Burial insurance offers peace of mind that the loved ones do not need to handle this entire burden on their own.
In most cases, when we get older, the need for a larger amount of insurance protection dwindles down. By this time, young children are most likely to become young adults and start their own families. We may even be retired, so the need to replace employment income to surviving spouse is no longer required.
Most people require some form of life insurance protection, even with a lower need for insurance coverage in senior years. This is the reason; a burial insurance plan becomes the best choice for ensuring the low coverage needs in these years.
Burial Insurance cost
The senior burial insurance cost varies as it depends on the company chosen by the policyholder and the amount of coverage he/she opts for. The rates vary from $5000 up to $20000 in coverage, but it should be noted that you are not limited to just these amounts.
The seniors can purchase as little or as much purchase as they would like. When searching for the best options, the thumb rule is that the rates are lower for the younger and healthier. There is a little lower cost with premium payments by paying annually as compared to spreading it over the course of a year.
Types of Burial and Funeral Insurance Coverage
Burial insurance has two main types, the standard and pre-need. Each one can be an invaluable tool for the loved ones to pay for the funeral and other related costs of the policyholder. It should be noted that both types are unique in the manner they disperse the funds.
Standard funeral coverage
It is available as a term or whole life insurance policy. Its beneficiaries can receive funds upon passing of their loved ones once the life insurance claim gets approved. Such a person can use the amount for all the aspects of the final arrangements like memorial service, wake, funeral, burial, and headstone.
As the benefits are directly received by the beneficiary, therefore, they can work with the service provider of their liking and are not bound to any type of contract for using the funds with certain individuals or companies.
Besides other benefits, they also get the option to use these funds to pay other debts that are owned by or are related to their loved one. This could include the legal bills, hospital or nursing home bills, credit card bills, and any other outstanding balances.
How to get the best burial insurance for seniors?
Getting a senior burial insurance policy follows the same process as traditional insurance policies. There are options available to work with an agent or an agency to compare the life insurance quotes for seniors from different insurance companies. This will help to find the best plan that will meet specific coverage needs.
There is an advantage to work with an agent if you are looking to get quick coverage. Setting aside a few minutes is not a big deal when you and your agent set to fill an online application and find the perfect burial insurance plan.
This has got to be kept in mind that the burial insurance for people over 50 years old provides several benefits as compared to other life insurance policies. The funeral policies come with a more lenient underwriting process, and most of the insurance providers accept those with health issues.
Burial insurance can even be obtained for seniors with moderate to severe health issues. The ones who fall under this class may get a plan that offers a graded or modified death benefit. This has to be kept in mind that, mostly starting year three, the full death benefit becomes payable.
Advantages and disadvantages of Burial insurance for seniors
Burial insurance is not the only option for seniors that aim to provide their loved ones with coverage for the funeral expenses. There is no doubt that it can be the best option if you are specifically looking to cover burial costs along with any other type of expense that might be smaller.
Quick underwriting process
There are a streamlined application and underwriting process with burial insurance. Therefore, it is easy for senior citizens to apply for such coverage. The insurance company verifies the responses utilizing underwriting tools like background checks, medical information checks, and medication checks.
No requirement of medical exam
The burial insurance policies do not require a medical exam when you apply for such a policy, whether you are 50 years or 85 years old. The qualification is actually based on the answers to a series of medical-related questions listed on the life insurance application.
Monthly payments are fixed
The funeral and the burial insurance policies come with monthly payments that are fixed and can also be paid directly through the checking account or the SSI payments. Thus, the policyholder does not have to worry about the monthly payments.
The coverage is guaranteed
The fixed premiums and the guaranteed death benefit actually provide protection for life. The seniors do not need to worry about the premiums rising as they age. This has to be kept in mind, though, that normally it takes at least a decade to accumulate an amount that is sizable.
Accumulated cash value
Most people classify burial insurance as non-participating whole life insurance. The burial insurance policies offer a guaranteed cash value account that grows over time. The seniors can benefit from it in emergency cases, and if the life insurance plan has some time to accumulate cash growth, the seniors can utilize policy loans that can be borrowed from the cash-value account.
Less maximum coverage
Mostly the final expense policies limit the death benefit to $25000 or even less, though a few companies offer additional coverage up to $50000. One may require considering additional coverage by getting a traditional life insurance policy, either term insurance or universal.
Possibly high premiums
Another issue related to burial insurance is the cost of the policy. Finding cheap senior life insurance policy is never easy, especially for the ones with health-related issues. The premiums for such plans are often much higher as compared to the level benefit plan.
Limited options due to age restrictions
There are age restrictions with most of the funeral expense policies. Mostly, these policies are only available for people between 50 to 85 years of age. Such an age restriction obviously gives limited options to the policyholders.
List of a few burial insurance companies
This is a fact that there are dozens of life insurance companies that actually offer burial policies. This has to be noted that they aren’t all equal. One can have a plan with any of them and feel comfortable that they will be able to pay the claim when the time comes.
Mutual of Omaha
Mutual of Omaha living promise actually has some of the lowest rates for the seniors on burial policies. This is even true for the seniors looking for life insurance that is over 80. Their graded plan is rarely the best option for the policyholders.
Unless one has recently gone through incidents like heart attack, strokes, cancer, or an illness that is chronic, there is a good chance to qualify for their final expenses insurance. Once accepted, the seniors get immediate coverage that has no waiting period.
Liberty Bankers Life
The Level plan of Liberty Bankers Life is excellent and a well-priced choice for the ones who qualify for it and come with full day one coverage. Liberty Bankers Life is also considered as the friendliest burial insurance company for the applicants that deal with mental health issues.
Sentinel Security Life
Sentinel Security Life is considered among the few companies with two plans that come with instant coverage. Their Preferred and Standard plans come with no waiting period. Their graded plan is unfortunately not much favored and comes with a full two year waiting period. Sentinel Security Life is competitive for most ages, price-wise.
Royal Neighbors of America
Royal Neighbors is probably the most liberal funeral insurance that exists in the market. It offers underwriting that can absorb some serious risks. There are very few ideal applications with their graded plan, while the level plan has no waiting period, though.
Royal Neighbors is considered the best burial insurance for seniors that have diabetes. Their prices are very low and offer immediate coverage to people with type 2 diabetes, neuropathy, or any individual that is severely overweight.
Another big advantage Royal Neighbors offers to its funeral policyholders is if they have issues like blood thinner or any mental health disorder, they will have no issues in giving funeral insurance coverage for such cases.
Hi, this is Mitch Winstead, I have been selling burial insurance for over 20 years. Our Facebook page is http://www.facebook.com/advancedmutualgroup.com Our website is http://www.advancedmutualgroup.com
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If you would like a hassle-free quote with no obligations, please call or email our office today at 1-866-598-8170. We have Mutual of Omaha burial insurance plans and AIG burial insurance. Our plans are state-regulated. We have top-rated carriers at the best rates! Compare us to Colonial Penn or Globe Life Insurance. The average cost of a funeral is around $8,500. A person can get burial insurance to offset that cost.