Understanding Burial Insurance For Seniors
The topic of senior burial insurance confuses some consumers because they assume these products are associated with funeral homes. Actually, life insurance companies sell burial insurance for seniors, and this can give policy owners a big advantage. Unlike pre-paid funerals, the money from burial life insurance does not have to be spent at any particular funeral home or company, and it does not even have to be used on a funeral at all. You can purchase burial insurance for your parents or yourself that pays a cash benefit. This cash can be spent by the beneficiary in any way she chooses. We can help you learn more about coverage for yourself or an elderly person in your family. For example, if you want to compare burial insurance for seniors over age 70, you can simply take advantage of our free quotes and professional advice. This should help you determine if this is the right solution, and it will also help you find the best product at the best possible price.
Is it Difficult to Apply for Coverage?
We make it very simple to apply for coverage. In fact, we can provide burial insurance quotes and more information online or by phone. Adult children can gather most of the information for their elderly parents, and parents only need to be involved during the short application process which can be done over the phone. Most elderly people and their families are relieved when they find out that there is a very simple way to prepare for final expenses. Typically, adult children or grandchildren are named as the policy beneficiaries, but other people who are close to the insured person might qualify as well. In most cases, the person or people who will be responsible for making final arrangements get named as the beneficiary or beneficiaries. While some of the money might get spent on a funeral and other end-of-life expenses, any extra money can get saved or spent in any way that the beneficiary chooses.
Why Buy Burial Insurance for Your Parents or Yourself?
Senior burial insurance can provide a good way to prepare for the typically large expense of funerals and burials. Average funerals can cost several thousand dollars in the United States, and this expense can be a burden for many middle class families. Besides the actual funeral, other expenses tend to crop up right after a loved one passes away. These are some typical expenses families need to handle after a loved one dies:
- Funerals and burials
- Travel or feeding and housing guests
- Transporting a body
- Settling debt and estates
- Making up for time lost at work
- Closing out the deceased person’s residence
The time after a loved one passes away is usually painful and stressful enough without having to worry about money to pay a funeral home or move your loved one’s belongings. A lot of times, decisions have to be made quickly, and there is no time to worry about raising funds to pay for services. The cash proceeds from burial life insurance can alleviate a lot of worries for the adult children or grandchildren of an elderly person.
Who Can Qualify for Burial Policies?
You might have been told that you cannot purchase final expense insurance for seniors over 70. Many elderly people and their families are relieved to find that they can still purchase burial insurance for seniors up to age 80. Some burial insurance companies even sell products for qualified older people up to age 85. Almost all elderly people can qualify for some sort of coverage, but it is important to understand how these policies work. Many fairly healthy and active seniors can actually qualify for fairly cheap plans, so you should not always take the first offer that you see advertised on TV or the Internet. Once you understand how burial policies work, you might find better coverage at a better price.
Simplified-Issue Burial Policies
Many burial policies are considered simplified issue. This means that these policies are much easier to apply for than typical life insurance policies. These are some features and benefits of typical simplified issue policies:
- Coverage lasts for a lifetime.
- Typical coverage amounts range from $5,000 to $25,000.
- The applications ask very few health questions.
- Typical age-related medical conditions like controlled high blood pressure and even controlled diabetes should not be a problem.
- Major health issues like heart attacks or strokes should not have occurred within the last two years.
- Death benefits are instant upon policy activation.
- Most families can find affordable coverage.
Can Elderly People with Health Issues Get Covered?
You can still find burial insurance companies that offer coverage for elderly people who do have some more serious health issues. These are sometimes called guaranteed acceptance or graded benefit policies. They require absolutely no answers to health questions on the application, so nobody gets declined because of a pre-existing medical condition. These burial policies will not be quite as cheap as simplified-issue policies, but they can still be a good alternative for elderly people who have serious health issues. These are some features and benefits of guaranteed policies:
- They require no medical exam and ask no health questions.
- They pay a graded death benefit upon policy activation.
- Because of the modest death benefits, they should still be affordable for many families.
You might have some questions about graded death benefits and wonder how senior life insurance companies can stay in business if they offer to cover people who have serious medical issues. Instead of using a medical exam or health questions, insurers use a waiting period before the full amount of the death benefit can be paid to the policy beneficiaries. Different companies use different benefit structures, but this illustrates the basics of how this works:
- The entire death benefit may not be payable for two to three years after the the policy is activated.
- If the insured person dies before the waiting period ends, the policy either pays out some percentage of the death benefit or offers to refund premiums.
This can still be a win-win situation for some families. Even if the insured person passes away before the waiting period expires, the beneficiaries still get their money back. In many cases, the beneficiaries will get more than their money back. For example, some of these policies may have a three-year waiting period, but they pay out half of the death benefit if the insured person passes away after two years. They may pay out a quarter of the death benefit if the insured person passes away after the first year. If the insured person passes away within the first year, the policy might refund premiums. This is just an example that is meant to clarify how graded policies work, and it is not meant to illustrate any particular insurance policy. You can contact us for a clear explanation of the details of different options on the market in your area. Except for somewhat higher rates and graded death benefits, these policies are very similar to simplified-issue policies. Typical death benefits range from about $5,000 to $15,000, and the death benefit comes as cash that is paid right to the beneficiary.
Which is the Best Burial Policy for Your Family?
You have probably seen advertisements for senior life insurance policies that offer guaranteed acceptance. This might be the best solution for elderly people with serious health issues. However, many active older people can qualify for immediate death benefits and lower rates. If possible, a simplified-issue policy is probably a better choice. If you or an elderly parent is fairly active and healthy, you can contact us to ask which solution will be best for your family.
How to Select the Best Burial Policy for Your Family
Other things can impact rates besides the type of policy and application. Some other factors include where you live and the company that you decide to do business with. Of course, the amount of coverage that you require is also a major consideration. For instance, funerals cost a lot more in some parts of the country than they do in others. It can be difficult for the average consumer to shop around for the perfect amount of coverage from the right company in their local area. An independent agent with experience in this field can provide invaluable assistance. You can contact us at any time to help you find the right coverage and help you during every step of the process. We offer free quotes for senior life insurance, and we are always happy to answer your questions and suggest plans that will help solve your unique problems. Of course, we also understand that budgets are important factors, so we want to work with you to provide the best coverage at the right price. Our services are free, and you do not pay anything unless you decide to buy coverage for yourself or a family member. Why not contact us as soon as possible to learn how to get a cash benefit that can help you take care of end-of-life expenses and provide security for your family?
- We also offer plan comparisons on Medicare supplement plans for 2015 on our sister website for clients over age 65.