5 Tips to shop Burial Insurance for Seniors
The death of a loved one is always a difficult moment and it can be also very expensive, where a family member or other dependent can find themselves dealing with the costs.
The Cost of a Burial
The average cost of a funeral in the U.S. is somewhere between $7,000 and $10,000, or roughly twice the cost of a cremation service. These expenses can include:
- Grave liner or outer burial container
- The grave site plus the cost to dig the grave
- Rental fee for the funeral home
- Funeral director fees
What is a Burial Insurance?
Burial insurance, also called funeral insurance or final expense insurance, is a form of whole life insurance designed to cover the expenses of a burial or funeral. No Doctor examinations are required.
Life Insurance Policies can be issued for ages 60 – 90 depending in which State you live and for amounts from $ 5,000.00 to $50,000.00 in total burial insurance coverage.
5 Tips to shop Burial Insurance for Seniors
I will share some tips when shopping for Burial Insurance:
- When you purchase Burial insurance, you will likely have two payment options: graded and immediate. The difference between these two payout options and meaningful and you will want to make the right choice based on your situation. The differences are:
Immediate Payout –
Exactly like it sounds, the funeral insurance pays out completely when the policy holder dies. So, if you held a $10,000 burial insurance policy then when you passed away, that $10,000 is payable in one lump sum to whoever you designate as your beneficiary
Graded Payout –
If your policy has a graded payout, then the beneficiary is payed only a percentage of the full policy based on when it was purchased, and when the policy holder dies. For example, the policy might be written to payout 20% of full value if the insured dies within the first year, 50% if they die within the 2nd year, 75% if they die in the 3rd year, and full policy value paid out if they die after the 4th year. So, a $10,000 policy would only pay $2,000 if you die within a year of the policy getting issued, and so on.
2. Age: The older you are, the more you are going to pay for final expense insurance.
3. Medical Exam or No-Medical Exam?
To get the lowest premium costs with the best and most affordable policy, you will have to get a medical exam. No medical exam options are available but they are more expensive.
Just like other types of life insurance, if you have underlying medical conditions or morbidity factors you are going to pay more. These might include:
- Being overweight or obese
- Currently being a smoker or were a smoker in the last 5 years
- Being a diabetic
- Have high blood pressure
- Take prescription medications
- Family history of cancer, heart disease, etc.
4. Shop around, shop around, and then shop around. Call an independent insurance broker that will give you many options or go to websites that can compare quotes online. Always compare policies, benefits, and eligibility requirements. To find the best burial insurance policy, you must at all costs consult with a highly experienced independent brokerage that represents multiple highly rated insurance companies.
5. Be aware!! AARP & Globe Life
AARP and Globe will attempt to sell you life insurance that expires. Yes you read that right. Their flagship plans expire at a certain age leaving you without protection.
Unfortunately, many people today do not have the cash on hand to outright pay for their funeral expenses. For this reason, many people are eager to find a plan to ensure they never leave their family with the burden of unpaid funeral costs.
Burial Insurance is an option for you. They are all simplified issue whole life insurance policies. They don’t expire, the monthly cost is fixed for life, and the face value can’t decrease.
Where to shop for a Burial Life Insurance?
Working with an agency doesn’t cost you a dime, and it doesn’t mean you will pay more for your insurance. Do you like shopping around before you make a purchase? Well, working with an independent agency is equivalent to shopping 20-30 burial insurance companies. Do you like having an expert service you? Well, working with an experienced final expense brokerage means you will have an expert assist you .
Call Mintco Financial at 813 964 7100 or 716 565 1300