Burial insurance for seniors

Best Burial Insurance Plans For Seniors In 2020 
 
Burial life insurance for seniors is a great opportunity for senior citizens to arrange the final 
expenses of their life. More and more seniors are moving towards burial insurance 
because it is cheap and easy to get insured.  
 
Burial insurance, also known as a funeral or final expense insurance, is an extraordinary life 
coverage, especially for seniors. It reduces funeral-related expenses to help ease 
financially and arranging funeral services for family and relatives. Different Plans run in cost 
from about $18 to $286 every month for seniors depending upon the senior’s age, sex, 
health, and how much inclusion they need. You will receive less expensive insurance policy 
in case you’re healthy and can answer “NO” to the medical inquiries on the application. 
 
Policy 
The policy is a formal document signed between an insurance company and the person 
who buys insurance. It has all the details of the contract. The policy may vary according to 
the requirements of the customer. 
 
Cash Value  
It is the amount of money paid to the beneficiary when policyholder dies. It is also 
necessary to remember that if the insurer uses the cash value, that policy builds, the 
amount received by the beneficiary will be less. 
 
Beneficiary 
Any individual who receives death benefits in the event of insurer death. The insurer can 
name anyone as a beneficiary. Usually a family member or loved ones are beneficiary. 
 
 
 
What is burial insurance? 
 
 
Burial insurance is a sort of funeral expense life coverage approach intended to take care 
of the expense of your funeral or cremation expenses when you die. Burial insurance is 
also known as funeral insurance or final expense insurance, is a particular sort of insurance 
that is structured primarily for paying costs of burial or final expenses. This is a type of 
whole life insurance, which remains throughout your lifetime as long as premiums are paid. 
Burial and funeral arrangements are a significant component of any distant financial 
planning.  
 
Since numerous individuals don’t understand that funerals can cost thousands of dollars, 
they don’t frequently consider preparing. This kind of circumstance can some of the time 
lead to financial hardship for families or relatives and family who must take care of the 
expenses. 
 
Whole Life Insurance 
It is a type of permanent life insurance that provides coverage to the insured person 
throughout a lifetime. It often requires a medical exam to qualify. The policyholder has the 
right to access and use cash value when alive. 
 
Premiums 
A premium is the amount policyholder pays to the life insurance company. The amount of 
premium depends on the insurance policy an insurer buys. The premiums can be paid all at 
once or on monthly basis. 
 
Underwriter 
An underwriter is a person who decides if an applicant meets the eligibility criteria to get 
insured. Underwriters mostly work for insurance companies. They check applicant 
background, health history and etc.  
 
Tax-deferred 
It means that the insured person pays the amount of taxes at a later date. When insurer 
withdraws some or whole money from the account then pays taxes on it. The advantage is 
that you may lie in the lower tax section when paying tax in the future.  
 
 
 
What are the types of burial insurance? 
 
There are two most common types of burial insurance. 
Burial or Funeral Insurance 
Life insurance companies offer burial life insurance as a whole life insurance policy. Cash value 
or death benefit is given to beneficiaries of the insurer on death. They can use the cash value as 
they like. Usually, cash value covers funeral home services, transportation cost, burial or 
cremation, casket and headstone. 
 
The beneficiaries also have the advantage to hire any funeral home for final expense services. 
They can use death benefits in any manner to cover medical bills, credit card bills or other loans. 
 
Pre-need Insurance 
 
In pre-need plans, the amount is paid to the funeral home where arrangements for the funeral 
were made prior to the death of the insurer. This allows family members to meet all the 
requirements of their beloved ones. It also helps the insurer to choose funeral services of its own 
desire. Pre-need insurance covers all the costs related to funeral home services, funeral 
merchandise, church and burial costs. 
One major advantage of pre-need insurance is that the insurer gets funeral services at the 
cheaper rates that may be expensive in the future. 

What makes funeral insurance unique?

Lenient Underwriting

One of the main features that makes burial insurance stand out from other life insurance policies is its lenient underwriting.  What is underwriting? It is the process used by life insurance companies to price risk. They analyze the risk associated with potential clients. They then figure out how much coverage a potential client needs vs. the likelihood of them claiming that policy. Using the results from this process they set the price of your policy’s premiums.

Since funeral insurance policies are designed to absorb high amounts risks, no health exams or questionnaires are usually required.

Small face value options

The death benefit is also known as the face value. It is the amount the insurance provider pays your beneficiaries when you pass away. Final expense insurance gives you the option of as little as $1,000 worth of death benefit. This is a great feature as you only buy what you need.

Easy to get

You don’t have to physically go to an office to get the final expense insurance policy. You just have to fill out an application. This can be done online, or from the comfort of your home, over a phone call or via email.

Portability

The death benefit for final expense insurance can be claimed by your beneficiaries regardless of where you died on earth.

Guaranteed life insurance option

Funeral insurance offers a guaranteed life insurance option as well. Though it comes with a 24 month waiting period and higher premium costs, it may be the right insurance for you. It may that your age or health does not let any other life insurance company insure you. It does not require any health questions or medical exams.

Nothing Changes

Funeral insurance is a type of whole life insurance, this means your premium cost and death benefit stay constant and last forever.

Cash Value

As mentioned before, burial insurance offers a cash value component. Cash value serve as a savings account. Though you may never want to touch it, life is uncertain and having cash value can be of use if you ever face a financial crisis.

Fast approvals

Funeral insurance approvals can range from 12 minutes to 3 business days. This time may vary depending on the insurance company.

Lots of final expense insurance companies to choose from

If you are worried that no insurance provider will insure you because of your age or health, you need not worry. There will very likely be many funeral insurance companies willing to insure you. The insurance business is growing rapidly and every day they come up with new ways to fill the gaps in the market and attract more customers.

What are the different options in burial insurance?

Final expense insurance offers three different types of policies, some insurance companies only have two. These policies have different premium costs and eligibility depends on health.

The three policies are as follows:

Level Benefit Plan

Also known as the preferred benefit plan by some providers, it requires you to say no to all the health questions from the insurance company. If you are approved, you get coverage from the first day. This plan offers the lowest premiums the insurance provider can offer.

Graded Benefit plan

Graded plans offer partial coverage during the first two years of the policy. What partial coverage means is that if you pass away during the first year of the policy, your beneficiaries receive only 30% of the death benefit. If you pass away during the second year, your beneficiaries receive 70% of the death benefit. They will only get the full death benefit, if you pass away two years after the policy. The exact percentages of the death benefit for the first and second year may vary depending on the insurance provider. But most life insurance companies offer between 25% and 40% during the first year and between 50% and 75% during the second year.

Modified Plan

This is the highest risk plan an insurance provider can offer. You can qualify for it if you have certain medical conditions, like heart attack, cancer, etc. But is has the condition that if you pass away within the first two years of the policy, your beneficiaries only receive the premium payments and some interest. They receive the full death benefit if you pass away after 2 years of the policy. This condition makes many people consider this plan completely worthless.

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