When looking for burial insurance for seniors over 70, it is easy to get overwhelmed. There are a considerable number of insurance providers who overpromise and underdeliver. It often leads to confusion, and you may experience disturbing results.
Burial Insurance coverage is suitable for you if you are in the age group of 50 to 85, although most insurance companies offer plans to those as young as 30 days of age. Most plans are a type of life insurance known as “whole life insurance.” This kind of insurance has no term to it, and you can even consider it to pay at the age of 100 in many cases.
Burial insurance plans get expensive the older you get, and most providers have a maximum age limit for buying one. Hence, it is a good idea to look into getting an insurance policy as early as possible. The younger you are, the cheaper your pricing will be.
How Does Burial Insurance for Seniors Work?
The burial insurance procedure starts when you decide that you need it. It would help if you did a careful analysis of your overall financial picture. If you think your family will need additional money to cover burial expenses, you should search for an appropriate insurance policy.
If you are the insured person, you will typically make monthly payments, and these payments go towards paying your beneficiary the policy amount after you die. Your beneficiary will get a fixed sum upon your death. A characteristic sum is between $5,000 and $50,000.
Look into the Funeral Insurance Costs & Premiums
Burial insurance premiums are according to your sex, age, the size of your policy, and your present day health. Everyone who wants to take coverage and every insurance company that offers it is different. Ensure that you ask for a personalized quote from any provider you are shortlisting.
Check the Average Burial Expense Coverage
The Burial coverage can range anywhere between $5,000 and $20,000. Most of these policies will fall around $10,000 for both men and women. When choosing the amount you need, it is crucial to consider what types of final arrangements you want, or if you also want sufficient leftover to cover medical bills and other debts.
Two Types of Funeral Insurance Plans
There are two general kinds of funeral insurance: standard and pre-need. Both policies will help you plan and set aside the finances for all of your final arrangements.
Standard Funeral Insurance
Life insurance companies offer it as a whole life policy. The provider pays the insurance coverage to your beneficiaries upon your death to pay for final arrangements. It may include:
- Opening and closing of the grave
- Funeral home services
- Transportation
- Headstone, grave vault, flowers, obituary notices
- Urn
- Casket
- Cremation
Your loved one (the beneficiary) can talk to any service provider s/he wishes. They may also choose to apply some or all of the funds to other expenses or debts that are payable. These expenses may include:
- Medical bills
- Legal services
- Credit card debt
- Mortgage, personal, car, or other loans
Pre-need Funeral Insurance
Life insurance companies offer you pre-need agreements. However, the funeral home you choose directly gets these funds instead of a selected loved one. The insurance company will immediately pay the funeral home as soon as you pass away.
If you take pre-need insurance, it can help you save money because you can pay for the services that may be cheaper today than they may get in the future. However, in case you spend more for your burial insurance plan than you pay for your burial, your beneficiary may not receive the difference.
In simple words, if you take out a $10,000 burial insurance for seniors over 70, but the funeral home finds that your final arrangements cost $9,000, the funeral home will not give your beneficiaries the leftover $1,000.
Burial Insurance with No Waiting Period & No medical Exam
Many insurance providers offer definite plans to pay out the full death benefit amount as soon as you pay your first payment, and the provider has approved your application. It merely means that if you make a single premium payment and then pass away, your beneficiary will get the full amount you were covered for (as long as you didn’t misrepresent any wrong to the insurer).
Furthermore, choose a plan where you just need to answer a few general questions. It means you do not need to take a medical exam, give blood, submit urine samples, or provide your medical history. The coverage you choose will be as per your answers to the health questions on the insurance application.
To conclude, planning for your burial arrangements will go waste if you don’t let your loved ones know what your wants are. Make sure you choose your burial insurance for seniors over 70 and make your final arrangements and let your dear ones know so they can perform funeral tasks properly when the time comes.
