Burial Insurance For Seniors
Nowadays, many Americans are concerned with planning their financial future, especially their final expenses. As we get older, we ultimately include end-of-life or funeral expenses in our expenditures. For getting the best funeral or cremation services after your death, burial insurance coverage could be the best option.
Burial insurance, also known as cremation insurance, is a type of life insurance that is designed to cover your funeral costs. According to different insurance companies, its name varies depending on the company. A lot of policies are available now to accommodate this expense along with varying health conditions, premiums, and death benefits.
In this blog post, we will provide you with a guide that determines what burial insurance is, how it works, and other general confusions about this insurance. Let’s explore together!
What is Burial Insurance for Seniors?
Burial insurance for seniors is a very affordable way to make sure your final expenses will never be a burden for your family. It is a whole life insurance policy that usually gets approved without a medical exam and pays you the death benefit under $50,000.
In case you want to buy a policy for your parents or any other senior member of your family, that person must be involved in the process and agree to get the policy. Although some policies demand you to answer some health questionnaires, others do not. However, the policies that do not need any health questions are guaranteed-issue policies. Unless and until you fit its age requirements, you will get coverage regardless of your health issues.
Guide to Buy the Best Burial Insurance Plan
Along with so many options in the market, finding the right burial insurance that fits your needs can be very tough. Different companies along with their varying policies are there to confuse you. Here we will give you some simple steps to help you decide which policy is the right and best option for you.
1- Checkout whether the policy is right for you
If you are responsible enough and have some savings in advance, you do not have to worry about your final expenses. The best option for you is to get pre-paid funeral home services where you can pay for your cemetery plot and services in advance.
In case you do not have enough money to avail this option, get burial insurance where you only have to invest a small amount of premium each month. Determine your financial situation to decide what option stands best for you.
2- Understand your Needs
When you decide to go with burial insurance, determine what exactly you want from your policy. The death benefit and additional riders may vary according to the insurer and policy. You can decide the death benefit according to your needs and expenses, but for higher death benefits, the premium will be high too.
3- Analyze your Budget
You may have an idea that you have to pay a monthly premium to keep your policy going. However, some plans offer you to pay annually but still you have to know how much you can afford to spend on it. Remember that premiums are something you have to afford for the long run so it’s better to analyze your budget and income.
4- Know the Qualifying Criteria
As mentioned earlier, guaranteed acceptance plans accept you with any health condition but within a specific age range, other burial plans demand to meet a certain health criteria to get the policy. Meanwhile, you do not have to undergo a medical exam but you have to be asked some health questions and record checks. If you are healthy enough, go for a policy with simple checks, as they relatively have lower premiums.
5- Compare different Policies
When you are buying burial insurance, there is no universal best option because it all depends on your needs and requirements. So take your time, and review different companies, their plans, and what they are offering before making a final decision. You can also seek help from a professional advisor or call the company to clear up any queries.
6- Inform the Beneficiaries
Informing your beneficiary is as important as getting the policy or paying the premiums. They should know that they are a beneficiary of which policy and from which company. It’s even better to give them a copy of your policy and discuss the expenses the policy will cover once you die.
How does Burial Insurance for Seniors Work?
Burial insurance is a type of whole-life insurance in which the premiums remain the same throughout the plan. However, the death benefit will not decrease, it stays forever and builds a cash value for you. The coverage amount usually burial insurance offers is $50,000 or maybe less.
The insurer will pay the death benefit to your beneficiary to pay for funeral costs, medical bills, credit card debts, or any other thing after your death. If the money is not spent on final expenses, your beneficiaries are all free to use the death benefit the way they want.
Moreover, a burial policy offers you lenient underwriting and you can also qualify for a new policy, which is not allowed in traditional life insurance policies.
What are the different available types of burial insurance for seniors?
Typically, there are two types of burial insurance plans for seniors. These are:
1- Simplified Issue: This plan is also known as “no exam funeral insurance”. It is the least expensive plan in which full death benefit pays out from starting on day one. It means there is no waiting period. You don’t have to undergo a medical exam to qualify, but have to answer some health questions.
2- Guaranteed Issue: commonly known as guaranteed acceptance, these plans have no health questions as your approval is guaranteed. However, these are more expensive than simplified issues and have a two-year waiting period. If you die within this period the insurer will refund only the paid premiums along with some interest. But if the death is accidental the waiting period does not apply.
What are the things you know before buying a burial policy?
Before buying a burial life insurance plan, you should know the following things:
- Waiting Period: Find out whether your policy has a waiting period or whether the death benefit will be available immediately after your death.
- Premiums: Many plans have a guaranteed premium that remains the same for your entire life despite your age or health condition. But remember that isn’t always the case.
- Discounts: Most plans come with premium payments every month but some offer you a discount to choose to pay premiums annually or semi-annually. Might be these discounts seem small initially, but they save you a lot with years.
- Additional Fees: Along with your monthly premiums, you may also have to pay an annual administrative fee in some companies. So you should be aware of how much this fee is and when you have to pay it.
- Optional Riders: With some plans, you are allowed to add on riders that offer some additional benefits for extreme illness, accidental death, or maybe coverage for your children. If you are interested in getting them, find out whether they are available and if yes how much cost you need to add on.