Burial insurance for seniors might be misunderstood by some consumers who are looking for a way to make certain that they have enough money to pay for a funeral and handle other final expenses. Even though this product is called burial insurance for seniors, it is not tied to any specific funeral home or company. It is a type of life insurance that is sold by highly-rated insurance companies.
Some of these top-rated insurers include Aetna, American Memorial and Royal Neighbors of America. These products have been specifically designed to provide an affordable way for seniors and their families to plan for final expenses, and these expenses might include funerals and burials. These products can be very important because U.S. funerals may cost $8,000 or more, and this is not a trivial amount of money for most families.
Why Choose Burial Insurance For Seniors?
Because insurance companies sell burial life insurance for seniors, these plans provide a cash benefit that can be spent or saved in any way that the beneficiary chooses. The money can be spent on a funeral and other final expenses after a loved one dies. However, the recipient of the proceeds from these policies is also free to decide on the best way to spend the money. Prudent families might try to prepare in advance for major expenses like funerals, but it is not always possible to know in advance exactly how to make the best use of extra funds.
How Does Burial Insurance for Seniors Help Families?
Typically, adult children or other responsible parties have to make a lot of decisions right after a loved one passes away. Some of these decisions have to be made very quickly, and they might involve the following when considering burial insurance for seniors:
- Finalizing funeral plans and choosing a burial site
- Dealing with possessions that elderly parents have left behind
- Travel to a funeral or transporting a body
- Feeding and housing funeral guests
- Paying debts and legally settling an estate
In addition to experiencing grief, close family members may also endure stress because they have to take many necessary actions very quickly. The last thing that any adult child or grandchild wants to worry about is where to come up with the money to pay for a funeral and other bills. Burial insurance for seniors can solve this problem by providing a cash payment that usually ranges from $5,000 to $25,000.
Qualify for Cheap Burial Insurance For Seniors
You might think that burial insurance for seniors must be very expensive, but this is not usually true. These plans have specifically been designed as an affordable way for older folks and their families to prepare for final expenses. Because the death benefits of these plans are fairly small when compared to typical life insurance for seniors, many families find that the rates are fairly reasonable.
Rates depend on a few different factors, and these include:
- The amount of coverage
- The city and state where the applicant lives
- The age and health of the applicant
- The burial insurance company
Level vs. Graded vs. Modified Benefits
The insurance company and the age and health of the person who wishes to get covered also impact the type of benefits and the way they will be paid. Many reasonably healthy and active older people can qualify for level benefits. Typical health concerns like high cholesterol or controlled high blood pressure may not be a problem.
Elderly people who have some more serious medical issues may qualify for graded or modified benefits. Graded and modified burial insurance for seniors involves a waiting period that usually lasts for two or three years. However, in the worst case, modified and graded benefits will refund premiums or pay some portion of the death benefit if the insured person passes away before the waiting period ends.
This defines three different types of benefits that an applicant might qualify for:
- Level or immediate benefits mean that the beneficiaries are entitled to the entire face value if their loved one passes away immediately after coverage begins.
- Graded burial insurance for seniors means that the policy may only pay out a portion of the death benefit during the first couple of years after the coverage is activated. Sometimes, this percentage increases each year until the waiting period expires, and then beneficiaries are entitled to the entire face value.
- Modified benefits mean that the policy only refunds premiums if the insured person passes away before the waiting period ends, but these premiums may be refunded with interest.
Who Pays for Burial Insurance for Seniors?
Some elderly people purchase these policies for themselves as a way to relieve their family members of the burden of paying for their funeral. If they are able to make payments, most seniors feel satisfied because they can do their family this one last favor of relieving them of a financial burden. They may even be happy because burial insurance for seniors allows them to leave their children and grandchildren some extra money too if the death benefit is large enough.
In other cases, adult children offer to pay premiums for their parents. They do this because the elderly people have limited incomes and assets, and the adult children know that they will end up with the responsibility of paying for a funeral in any case. A senior burial insurance plan gives them an affordable way to prepare for that responsibility.
How to Apply for Burial Insurance for Seniors
We try to make it as easy to apply for coverage as possible. If you can provide some information about yourself or another person you would like to cover, we can help you select the best type of senior burial insurance coverage at the cheapest price. We can certainly advise you about your choices, and we even offer free online quotes to compare. We can help because we have a lot of experience providing burial plans for elderly people, and we are also independent agents who can help you compare your options from a variety of different senior burial insurance companies that do business in your local area.
If you would like to help an elderly person complete the simple burial insurance application process, you should be able to gather most of the information first. You only need to involve the applicant during the final stage of the application process, and the entire process can be handled over the phone.
Learn More About Planning For Burial Insurance for Seniors and Other Final Expenses
We provide senior burial insurance quotes and whole life insurance quotes along with professional advice. Please feel free to contact us as soon as possible for more information either by phone or online. No two families have exactly the same needs, budgets or situation. But our goal is to give every family an affordable way to prepare for the cost of funerals and other end-of-life expenses.