30 Jun 2019 Best Burial Insurance for Parents
Many seniors realize end-of-life costs, especially funerals, can cause a burden for their loved ones. With the best interest of their family and for their own peace of mind, they turn to funeral insurance for seniors.
Cost of Burial and funeral service, including cremation: About $15,000
- Casket or urn
- Viewing casket or urn
- Funeral Director Fees and Services (such as Funeral Director’s professional services, support staff services, registration and documentation, embalmer’s professional services, use of the funeral home)
- Cremation Fees
- Limousine and hearse rental
- Church rental, or other rental facility and equipment, including seating attendants
- A niche in a columbarium (including perpetual care of the niche)
- Scattering of ashes
- Bulletins, obituaries, and other death notices
- A clergy member, including costs of considerations related to religious groups that may not make up the majority of serving members
- An organist or other musician
- Flowers, photos, register books, a memorial video/CD/DVD, or other mementos
- Reception and catering.
What is Burial Insurance for Parents?
Like the name suggests, Burial insurance is designed to cover the cost of your funeral. No health check is needed to take out a policy.
Burial Insurance is a type of whole life insurance that provides a payout of $2,000 to $50,000 designed not to support your survivors but to spare them the burden of your post-death expenses, especially if your estate can’t cover the cost.
How Much Does Burial Insurance for Parents Cost?
Evaluating multiple insurance companies will allow you to find which one(s) will view your health most favorably. Those are the companies that will likely offer you a better deal than the rest.
Applying for policies that have health questions is better, because they will always cost less than a policy without them, all else being equal.
Also, these policies will provide coverage that protects you starting on day one.
No-health-question policies will not pay out a death benefit if you die during the first two years after taking out the policy. They also cost more.
Insurance that doesn’t require medical underwriting costs more because it’s generally the highest-risk people who buy this type of policy.
Insurers have to charge more because they’re much more likely to pay out than they are with the policies purchased by lower-risk people who can pass medical underwriting.
Burial Insurance for Seniors with Health Conditions
If you do have very serious conditions such as cancer currently, Alzheimer’s, a terminal illness or congestive heart failure, you’re not out of options: You can purchase a no-health-question policy and hope that you live for at least two years.
If you die during that waiting period, they will only refund the premiums you’ve paid, plus interest.
Insurers who sell guaranteed issue policies have this two-year waiting period so people won’t wait until they’re on their deathbeds to purchase insurance, which would put insurers out of business.
3 Things to know about Burial Insurance
Now that you understand the two-year caveat, what else do you need to be aware of if you’re considering a Burial policy?
The good news is that Burial insurance policies are fairly easy to understand.
The premiums cannot increase, the coverage cannot decrease and the policy cannot expire due to age.
How to Shop for Burial Insurance
You can shop around for a policy on your own or work with an insurance broker who will shop on your behalf for the best policy.
The broker’s services are free to you and paid for by the company from which you ultimately buy a policy.