Burial Insurance for Seniors
Burial insurance for seniors, which is also often known as final expense insurance or funeral insurance, has been designed to be a type of whole life insurance policy 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. This type of burial policy is easier to qualify for than most term life policies, and many life insurance companies offer this type of life insurance.
Burial Insurance for Seniors Overview
Even though insurers try to offer reasonable rates for elderly people, many senior citizens live on a fixed income, which leaves them with little cash to spare. Since the responsibility of these senior citizens ultimately falls to their adult children who help with burial arrangements, these children often offer to buy the burial insurance policy and make payments for their parents. In this case, those same adult children get named as the beneficiaries, allowing them to collect the proceeds from the insurance when their loved one does pass away.
Although adult children often don’t want to burden their parents with burial insurance details, they need to understand the following information:
- Application: The person who will get covered needs to give permission and participate in the process.
- Payments: Set up automatic payments with a checking or savings account for convenience and to avoid having your burial insurance policy lapse.
What Types Of Burial Insurance For Seniors are Available?
It is necessary to make a distinction between the different types of burial insurance plans on the market. While they share some common features, there are a variety of options:
Level Burial Insurance Plans for Seniors
These burial insurance plans are sometimes called level benefit or simplified issue. While these plans do ask a few health questions, they usually accept reasonably healthy elderly people. A medical exam typically is not required. Minor health issues like high cholesterol or routine medications are typically not a reason to refuse coverage for this type of life insurance policy.
Modified or Graded Benefit Burial Insurance Plans
These plans are open to seniors with serious health issues that may keep them from qualifying for level plans. They are offered when the senior cannot answer 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.
The best burial insurance policies for seniors will not need certain health questions answered, but there is typically a waiting period before the entire cash value of the death benefit is payable. If the insured person does pass away before this waiting period ends, the company will either offer to pay a percentage of the full face value or will simply refund previous premium payments. This is typically the case for the first two years or so, although it varies from company to company and final expense whole life policy to policy. If the company offers to refund premiums, they may also pay interest. All of the details of each plan should be clearly understood prior to signing for any type of final expense life insurance policy.
Regardless of the specifics, nobody loses money by buying any type of burial insurance for seniors. Whether premiums are refunded or part or all of the benefit is paid, there will be money available to put toward the cost of a funeral. The money does not have to be paid toward the funeral home, though, so it could be put toward other final expenses, too.
What Companies offer Burial Insurance For Seniors?
The choice and cost of burial insurance companies vary by where you live, your age, and your health condition.
Some top burial insurers are:
- Mutual of Omaha
How Much Does Burial Insurance For Seniors Cost?
Whether you are shopping for yourself or your loved ones, you should begin your search by determining the cost of coverage for different level death benefit levels.
We have experienced burial insurance agents available online or via the phone who can answer any questions you may have.
Begin now by entering your local ZIP code in the simple quote box and begin reviewing burial insurance quotes for top local choices.