If you have ever had the sad duty of planning a funeral, you probably already know that all of the costs involved can easily add up to several thousand dollars. While average US funeral costs are about $8,000, most people also leave other expenses behind when they pass away. Other family members may need to clean out a house or apartment, settle debts, and even pay taxes. In order to prepare for this very real financial issue, some families consider buying burial insurance for seniors.
Burial life insurance for seniors has been designed as a type of life insurance that is very easy to apply for. Because the face values are fairly small when compared to policies that people may buy when they are younger, the premiums are still affordable for many elderly people and their families. If you would like to shop for a burial policy for parents or yourself, you are welcome to begin comparing quotes by entering your ZIP code in the quick and simple quote form on this page.
Buying Burial Insurance for Elderly Parents
Even though insurers work hard to offer reasonable rates for elderly people, many senior citizens have to live on a fixed income that leaves them with little cash to spare. Since adult children of these senior citizens will eventually have to help with burial arrangements, they often offer to buy the policy and make payments for their parents. In this case, those same adult children get named as the beneficiaries, so they will be able to collect the proceeds from the insurance when their loved one does pass away.
These are some things to remember about buying burial insurance for elderly parents:
- Application: The person who will get covered by the policy needs to give permission and participate in the process. This probably just involves signing a form or taking a short phone interview, and it can all get done from home at your convenience.
- Payments: Set up automatic payments with a checking or savings account for convenience and to avoid having policies lapse because of a missed bill.
Types Of Burial Life Insurance For Seniors
It is important to make a distinction between the different kinds of burial life insurance plans on the market. They share some common features because they are usually open to people from about age 50 to age 80 or 85 and have death benefits that typically range from about $5,000 to $30,000.
However, burial life insurance companies may offer one or more of these kinds of plans:
- Level plans: Sometimes called level benefit or simplified issue, these plans do ask a few health questions, but they usually accept reasonably healthy elderly people. Minor health issues like high cholesterol or routine medications will probably not be a problem.
- Modified or graded benefit plans: These are open to seniors with some serious health issues that may keep them from qualifying for level plans. They may be offered when the senior cannot answer the health questions satisfactorily, or they may ask no health questions at all.
The advantage of qualifying for a level benefit is that the death benefit is payable immediately upon issue. This option also comes with the cheapest monthly premium. If a senior is active and fairly health for her age, try to find a plan like this.
With policies that don’t need certain answers (or any answers) to questions about health history, there is always a waiting period before the entire death benefit is payable. If the insured person does pass away before this waiting period ends, the company will either offer to pay some percentage of the full face value or simply refund previous payments. If the company offers to refund premiums, they may also pay interest. All of the details of each plan should be clearly spelled out before you sign up.
In any case, nobody loses money by buying any type of burial insurance for seniors. By choosing the wrong option, you may just pay more than you had to and have to accept less benefit choices.
Find The Best Burial Insurance Company
The choice of burial insurance companies and options will vary by where you live, your age, and your health condition. These things will also impact the cost, so it is important to compare insurers in your own hometown.
These are some top insurers that you might consider:
- American Memorial
- Royal Neighbors of America
Get Instant Burial Insurance Quotes Online
If you are shopping for yourself or your loved ones, you can begin by finding out how much coverage will cost for different levels of death benefits. Begin by entering a local ZIP code in the simple quote box and reviewing top local choices. You are welcome to learn more about any of these insurers online or by calling for assistance from an experienced life insurance agent. We hope this online insurance shopping tool and our offer of personal service will help you find the best burial insurance for yourself or your parents. Be sure to also check out the new Medicare advantage plans for 2016 on our sister website!