Nowadays everyone is concerned about the well-being and security of our loved ones. And when it comes to parents, we become overprotective and over-concerned. But not now! All your worries will vanish by getting burial insurance for parents.
By getting a burial policy for parents you can make sure that your parents’ end-of-life expenses are fully covered. Along with it, you can also ensure that the last wishes and ceremonies of your parents will be done in the best possible way. So getting burial insurance for parents is a great way to grieve and heal without worrying about final expenses.
In this blog post, we will explore all the important information you may need about funeral insurance policy for parents. We will also provide you with some best insurance companies offering this insurance service at very reasonable rates. Let’s get started!
Can you buy Burial Insurance for Parents?
Yes, you can buy a burial policy for parents. Many insurers offer burial insurance policies that allow children or other family members to purchase coverage for their parents. These policies are often referred to as “final expense” or “funeral insurance” and are designed to cover funeral and burial expenses.
While buying burial insurance for parents, it’s critical to consider factors such as the age and health of your parents. It’s also important to consider the amount of coverage needed to cover funeral expenses and premium costs. Some policies may require a medical exam or have exclusions for pre-existing conditions, so it’s critical to review the policy terms and conditions carefully before purchasing.
How to Buy Burial Insurance for Parents
For buying a burial for parents you need their consent. Because they have to participate throughout the process of buying the plan. They also have to answer some health questions and sign the application to get the insurance policy. You can’t buy final expense insurance for parents without their knowledge and consent even if you have power of attorney.
So, if your parents are not willing to participate in the process, there is no other way to get them insured. You can buy a pre-paid funeral for them directly from a funeral home so that their end-life expenses are covered.
How does Burial Insurance for Parents work?
Burial insurance for parents is a type of final expense insurance designed to cover funeral and burial expenses when a parent passes away. It works by providing a lump sum payout to the policyholder’s beneficiaries upon their death. This payout can be used to cover funeral, burial, or cremation costs.
The policyholder typically pays a monthly premium so that the plan remains active. However, the premium cost is based on the coverage amount and their parents’ age and health status. The policyholder can choose the coverage amount they want. This can range from a few thousand dollars up to tens of thousands of dollars, depending on their needs.
When a parent passes away, the policyholder or their beneficiaries can file a claim with the insurance provider to receive the death benefit payout. This payout is typically tax-free and can be used to cover any funeral expenses.
Note that some burial insurance policies have exclusions or limitations. These include waiting periods before the policy takes effect or restrictions on pre-existing conditions coverage.
How much does Burial Insurance for Parents Cost?
The cost of funeral insurance for parents can vary depending on several factors, including the parent’s age, health status, and the amount of coverage needed. Burial insurance policies are designed to be affordable and accessible to seniors, with monthly premiums ranging from $20 to $100.
The amount of coverage needed can also impact burial insurance costs for parents. Coverage amounts can range from a few thousand dollars up to tens of thousands of dollars, depending on the policyholder’s needs. The higher the coverage amount, the higher the monthly premium is likely to be.
How Much Does Life Isurance Cost?
In addition, some burial insurance policies may require a medical exam or have exclusions for pre-existing conditions, which can impact coverage costs. Guaranteed issue policies, which require no medical exam or health questions, may be available at a higher cost to seniors with health issues.
Pros and Cons of Burial Insurance for Parents
Like any financial decision, there are both pros and cons to burial insurance for parents.
The Pros:
Peace of mind: Burial insurance for parents can provide peace of mind for adult children. They are satisfied by knowing that their parents’ end-of-life expenses are taken care of and they won’t have to bear the financial burden.
Affordable premiums: Burial insurance policies typically have lower premiums than traditional life insurance policies, making it a more affordable option for older adults.
Guaranteed acceptance: Many burial insurance policies have guaranteed acceptance. It means parents can qualify for coverage regardless of their age or health status.
Fixed benefit amount: Burial insurance policies typically have a fixed benefit amount. So adult children can know exactly how much money will be available to cover their parents’ end-of-life expenses.
The Cons:
Limited coverage: Burial insurance policies typically only provide coverage for end-of-life expenses. In case your parent has other outstanding debts or financial obligations, the coverage may not be sufficient.
Higher premiums for older adults: While burial insurance policies typically have lower premiums than traditional life insurance policies, older adults may still face higher premiums than younger adults.
Limited payout options: Burial insurance policies often have limited payout options, such as a lump sum payment. It may not be the most flexible option for adult children who need to manage their parents’ finances.
Best Insurance Companies Available for Burial Insurance for Parents
When purchasing burial insurance for parents, there are many companies to choose from. Here are some of the most reliable companies offering burial policies for parents:
1- Mutual of Omaha
Mutual of Omaha is a well-respected insurance provider that offers life insurance and burial insurance products. Their final expense whole life insurance policies are designed specifically for seniors and offer coverage amounts up to $40,000.
2- AIG
AIG is a large insurance provider that offers life insurance and burial insurance products. This includes guaranteed issue policies that require no medical exam or health questions. Their final expense insurance policies offer coverage amounts up to $25,000 and can be an excellent option for those with pre-existing conditions.
3- Gerber Life Insurance
Gerber Life Insurance offers a range of life insurance and final expense insurance products, including policies specifically designed for seniors. Their guaranteed acceptance policy requires no medical exam or health questions and offers coverage amounts up to $25,000.
4- Colonial Penn
Colonial Penn is a well-known life insurance and final expense insurance provider. Their policies are available to seniors up to age 85 and offer coverage amounts up to $50,000.
5- Lincoln Heritage Life Insurance Company
Lincoln Heritage Life Insurance Company is a leading provider of final expense insurance products, with coverage amounts up to $35,000. They offer a variety of policy options, including guaranteed issue policies and policies that require health information.
When choosing a burial insurance company for your parents, it’s imperative to compare policy terms, coverage amounts, and premiums from multiple providers. Be sure to ask questions and seek guidance from a licensed insurance agent to make an informed decision.
Rate Comparison for Burial Insurance for Parents
Comparing rates for burial insurance for parents can help you find a policy that meets your family’s needs and budget. Here is an example of a rate comparison for burial insurance policies with $10,000 coverage amounts:
Mutual of Omaha: Monthly premiums for a $10,000 final expense whole life insurance policy from Mutual of Omaha can range from $32 to $83, depending on the parent’s age and health status.
AIG: AIG offers a guaranteed issue final expense insurance policy with a $10,000 coverage amount. Monthly premiums can range from $40 to $100, depending on the parent’s age.
Gerber Life Insurance: Gerber Life Insurance offers a guaranteed acceptance final expense insurance policy with a $10,000 coverage amount. However, monthly premiums can range from $40 to $85, depending on the parent’s age.
Colonial Penn: Monthly premiums for a $10,000 guaranteed issue whole life insurance policy from Colonial Penn can range from $38 to $101, depending on the parent’s age and health status.
Lincoln Heritage Life Insurance Company: Monthly premiums for a $10,000 final expense insurance policy from Lincoln Heritage Life Insurance Company can range from $38 to $75, depending on the parent’s age and health status.
It’s imperative to note that these rates are just examples and may vary depending on the parent’s specific situation.
Expert Life Insurance Agent and health insurance agent
Dylan is your go-to guy for life and health insurance at InsureGuardian. He’s helped over 2,500 clients just like you figure out the best insurance plans for their needs. Before joining us, Dylan was sharing his expertise on TV with Global News and making a difference with various charities focused on health. He’s not just about selling insurance; he’s passionate about making sure you’re covered for whatever life throws your way.