We are well aware of the general purpose of buying any type of life insurance policy, by now. The main purpose is to facilitate the dependents to counter any financial hardships they might come across after the death of the policyholder.
One of the most important types of life insurance which is often sold separately is called burial insurance. This is the only life insurance policy that offers coverage ranging from as low as $5000 to as high as $50,000. The reason it has lenient underwriting and requires no medical exam is its nature.
This is not an accessory by any means, it is a basic human right to ensure that his post-death planning is as per his wishes. The death benefit payout from burial insurance goes for covering the costs of arranging his funeral.
How much does life insurance cost?
Loss of a loved one can be devastating in itself, if the surviving dependents are burdened with financial crisis, this will turn it into a nightmare. To counter the immediate post-death expenses such as funeral ceremony costs, pending medical loans, or small pending credit card debts, burial insurance is the best solution.
- What is a $10,000 Burial Insurance Policy?
- How does a $10,000 Burial Insurance policy work?
- What are the Best agencies for providing Cheap $10,000 Burial Insurance?
- What is the cost of a $10,000 burial insurance?
- How does your health affect the cost of a $10,000 Burial Insurance?
- Which Expensive Companies should you beware of?
What is a $10,000 Burial Insurance Policy?
Burial insurance is an urgent expense for arranging a proper funeral for your loved one. If the deceased person is insured with a burial insurance policy, his dependents do not need to worry about his funeral. Typically, burial insurance is a permanent policy that gives you the comfort of the following:
- Immediate Death benefit payout.
- Cash Value Component.
- Fixed premiums till death.
- Payout after 24-48 hours of claim approval.
Burial insurance for seniors is a whole life insurance policy by nature. Other whole-life policies have coverage of around $50,000-$100,000-$500,000. Only burial insurance offers such low coverage options to facilitate the policyholders to afford their final expenses.
Burial insurance is sold separately by many reputable insurance agencies in the US. No other insurance policy can be bought for such a low face value. The burial insurance also allows you to opt for one with a face value of only $5000. These are included in the range of cheap burial insurance options for people who cannot afford better ones.
According to a recent survey of the NDFA National Funeral Directors’ Association, the average cost for a decent funeral in the US costs $8,755. Some sensible buyers buy an array of life insurance policies in combination. It might not be a matter of choosing cheaper burial insurance for them.
The burial insurance covers the funeral ceremony and other smaller debts such as:
- Post-hospitalization charges.
- Pre-hospitalization expenses.
- Outstanding small credit card loans.
How does a $10,000 Burial Insurance policy work?
When an applicant applies for the $10,000 burial insurance he has two choices to make:
$10,000 Simplified Issue Burial Insurance
- You go to the life insurance agency and fill out a detailed health questionnaire.
- It is important to fill it out accurately and honestly to avoid life insurance fraud.
- You do not have to give your blood or urine sample.
- You do not have to give any medical exam.
- You have to give your medical history and record of documents.
- If you’re not diagnosed with Alzheimer’s, Chronic Heart condition, or renal failure,
- Your application is approved for buying simplified issue burial insurance
- You are now liable to receive an immediate payout within 24-48 hours of claim approval after your death
- The payout goes to your named beneficiary.
- The no health questions, no medical exam, immediate payout burial insurance is the most popular burial insurance in the US.
- This simplified issue of burial insurance covers you from day one of purchase.
$10,000 Guaranteed Acceptance Burial Insurance
- This is open to all applicants, be they patients of fatal illness or dialysis, or serious heart conditions.
- The applicant does not have to undergo any medical exam.
- He does not have to fill out any health questionnaire.
- It has a compulsory 2 years waiting period.
- It is more expensive in terms of monthly premiums.
- Beware! No “no health questions no waiting period burial insurance” exists.
- Some firms might exploit you due to lack of knowledge such as AARP, Lincoln Heritage, TruStage, and Colonial Penn.
What are the Best agencies for providing Cheap $10,000 Burial Insurance?
The best agencies for buying cheap burial insurance policies are:
Mutual of Omaha Living Promise $2,000-$40,000 coverage, 45-85 age range, no waiting period.
Aetna Accendo policy $2000-$50,000, 40-89 age range, no waiting period.
Royal Neighbors of America SIWL $7000-$30,000, 50-80 age range, no waiting period.
Transamerica Immediate Solution $1000-$50,000, 45-85 age range, no waiting period.
Prosperity Vista $1500-$35,000, 50-80 age range, no waiting period.
AIG Guaranteed Acceptance, $5000-$40,000, 40-85 age range, 2 years waiting period.
Americo Eagle Premier $5000-$40,000, 40-85 age range, no waiting period.
Liberty Bankers SIMPL, $3000-$40,000, 50-80 age range, no waiting period.
Gerber Life, Guaranteed Acceptance, $5000-$25,000, 50-80 age range, 2 years waiting period.
What is the cost of a $10,000 burial insurance?
The factors that affect the premium are:
- Age of the policyholder.
- Gender of the policyholder.
- Health Conditions of the policyholder.
- Tobacco usage history of the policyholder.
- US Residential State of the policyholder.
Since the coverage is only $10,000, the monthly premiums range from $25-$200, a month. For a non-smoker 40 years old guy it’d be $24. Whereas, for an 80 years non-smoker, it’d be $236. Nevertheless, look for the right fit to buy a low-cost burial insurance policy.
How does your health affect the cost of a $10,000 Burial Insurance?
We have already discussed that burial insurance is a type of permanent whole-life insurance policy. We have also mentioned that a whole-life policy usually never offers coverage lower than $50,000 to $500,000.
The only whole life policy which is sold separately and offers coverage as low as $5000 to $10,000, is a burial insurance aka final expense insurance policy. Burial insurance is also sometimes referred to as funeral insurance.
If a person smokes or has a history of smoking, his premiums usually end up being 30-40% higher than the non-smoker healthy people.
The only life insurance in which the policyholder does not have to give any medical exam is burial insurance. It is urgent and important which is why the policyholder is not supposed to give a medical exam.
Health questions are asked, and you have to answer them truthfully. This will help you buy an immediate coverage burial insurance policy, which will cover you from day one.
If you have any terminal illness, you will have to apply for the guaranteed acceptance which comes with a 2 years waiting period. If a policyholder dies within these 2 years, the dependents will get a full refund of his premiums paid to date plus a 10% interest on it!
Your health conditions affect the cost of the burial insurance and premiums amount. Generally, the premiums for guaranteed acceptance are more costly than for simplified issues.
Which Expensive Companies should you beware of?
You have to be careful when choosing the insurance company for yourself. It is better to compare the quotes offered by many firms online. It is even better to use the help of an independent agent or a broker. If you consult a financial advisor, it can save you from some very hazardous insurance companies. Some burial insurance agencies offer false advertising of being cheap and are the exact opposite. Similarly, some over-promise and under-deliver, later on. These include:
- Colonial Penn.
- AARP.
- TruStage.
- Lincoln Heritage.