If there is one thing that we want to emphasize, it is that consumers should always shop around for the right type of burial insurance for seniors. Very often, the kind of burial life insurance for seniors, sometimes called senior life insurance, that you see advertised on TV or online is a guaranteed issue plan. This is great because you don’t have to worry about having to answer health questions for yourself or elderly parents.
However, by answering a few simple questions, you may qualify for cheaper premiums and better benefits. There are three basic types of burial insurance for elderly parents or yourself:
- Level benefits: Sometimes called simplified issue, these are for older people who in relatively good health for their age. As soon as the insurance gets issued, beneficiaries can collect the entire face value.
- Graded benefits: This is for older people who may already suffer from some pre-existing medical conditions or have had a recent history of a serious illness that they are recovering from. In this case, there will be a period that could last two or three years. At the end of that period, the policy will pay the entire face value. During the waiting period, the payable percentage of that face value will gradually increase.
- Modified benefits: These are generally for people who are confined to a nursing home or otherwise being treated for an illness that might be terminal. If the individual passes away before the waiting period ends, the policy will only refund premiums. They usually also pay interest on those premiums, so nobody loses any money.
In addition to having an immediate death benefit, level plans are more affordable. It is better to find a burial policy for parents or yourself that they can qualify for by answering health questions. However, modified and graded plans might provide a good solution for people with more serious health issues. The main point is that it is important to shop around for the right kind of coverage and the lowest prices from quality burial companies.
Who Buys Burial Insurance?
Anybody who has planned a funeral lately knows that the cost of a burial and funeral can cost several thousand dollars. In fact, the average funeral in 2012 was about $8,300, and costs have risen steadily. There are cheaper alternatives, like cremation and a simple memorial services, but even these options will probably cost a few thousand dollars. Besides, there are usually other final expenses to handle than just the cost of a funeral.
Since lots of elderly people have to live on fixed incomes, it is tough for them to save for this expense. Typically, adult children or other close relatives need to come up with the money for the funeral, and this can cause a big financial strain.
Often, seniors decide to purchase coverage for themselves, so they can relieve their family of this burden. In other cases, adult children offer to make payments. If you would like to find a burial policy for parents, keep these things in mind:
- The individual who will get covered does need to help with the application by answering questions and signing an application. Often, this can get done over the phone, so nobody needs to leave the house.
- Make sure that payments are set up via automatic debit to avoid accidental termination because a bill got overlooked.
- The owner of the insurance does not have to be the same person who is insured.
The hardest part about applying for a burial plan might be bringing up the topic with aging family members. Very often, elderly parents are relieved to find a way to help their loved ones plan for this inevitable expense. Since any money that is left over after attending to obligations can be kept by the beneficiary, this kind of insurance can also help seniors leave children or grandchildren an inheritance.
Online Burial Insurance Quotes
Depending upon your age and where you live, the choice of insurer may affect your premiums. In order to help you find the best burial plans and affordable rates, we invite you to get senior life insurance quotes from our simple online tool. Just enter a local ZIP code to begin.