Burial or Funeral Insurance- Complete Guide 2019

Burial insurance, we also named as funeral insurance or final cost insurance is a useful tool for loved ones who pay the funeral of a deceased relative or friend, memorial service, Tombstone, urn and other final expenses. It is essentially a life insurance policy, but with a much lower benefit amount than traditional life insurance. It is usually purchased to cover the final arrangements, but it can also be used to pay off the deceased’s debts, including medical bills, credit card accounts, mortgage loans, and personal loans. If you think you and your family can benefit from Burial insurance, it is easy and quick to get a free budget for a final expenses insurance policy.

Burial insurance for Seniors Over 70

Coverage is generally more suitable for people 40 to 75 years, although most companies offer plans to people only 30 days old. A different number of burial insurance policies are also called whole life insurance. This type of insurance is not termed and is considered paid at the age of 100 years in many cases.

Investigating this type of plan should be part of the end-of-life financial planning for each older person, but you may not want to wait until you are retired to start preparing. The plans become more expensive the older you are, and most providers have a maximum age limit to buy one, so it’s a good idea to look for your insurance as soon as possible. The younger you are, the more economical your rates will be.

If you are more than 50 years old and believe you will benefit from this type of coverage, investigate your options when writing a testament, update your power of Attorney (POA) or other guardianship documents, and assign beneficiaries to your financial accounts. Learn more about affordable life insurance for over 50.

Burial Insurance Rates and Premiums

These rates are based on your age, sex, amount of your policy and your current health status. All those finding details about the coverage and the entire Burial Insurance companies that offer it are different, so be sure to ask for a personalized quote from any vendor you are considering. Learn more about the funeral costs and how to calculate the Funeral Cost much coverage you want.

Monthly Premium Rates for Men

$4,000 Death Benefit$9,000 Death Benefit

 

AgeLooked Out In Good Health’ by InsurerNumber of Health Ques will be AskedGood Health by InsurerNumber of Health Ques Asked
50$17$21$29$39
55$18$23$30$40
60$22$26$42$52
65$30$30$50$69
70$37$43$72$80
75$50$60$99$120
80$62$81$122$160

* Estimated rates do not reflect the rates of any particular life insurance company.

Monthly Premium Rates for Women

$4,000 Death Benefit$9,000 Death Benefit

 

AgeDetermined ‘In Good Health’ by InsurerNo Health Questions AskedDetermined ‘In Good Health’ by InsurerNo Health Questions Asked
50$13$18$23$20
55$15$19$25$30
60$17$20$30$44
65$20$27$40$56
70$27$30$52$67
75$39$45$70$91
80$40$60$90$123

As you can see, women usually pay less than men for the same coverage. Rates for men and women increase with age and can save a considerable amount of money by answering health questions on your application.

Average Funeral Cost 2019

Coverage may range from $4.000 to $10.000 and most policies have around $10.000 for both men and women. When deciding on the detail you will want, it is significant to consider what type of final arrangements you want, as well as whether you want a sufficient remaining amount to cover outstanding bills and other debts.

Advantages & Disadvantages of Burial Insurance Policies

As with anything you buy, there are pros and cons to this kind of investment.

ProsCons
This life insurance is easiest to qualify and plans are also goodLess  benefit in varied life insurance plans
Fewer health questions to be answered in this InsuranceIf there are no health ques, you will not receive a discount for being in good health
There will be no need for any medical examinationRates are Little bit higher
Lots of pre-arranging services & paying them before timeThe amount paid in premiums may be greater than the cost of the funeral
It usually accumulates a cash value that can be used while the policy is active.Usually, little or no extra funds are paid after the funeral expenses have been paid.

The best way to decide if one of these plans is right for you is to research a little. Contact some companies to get budgets and review your options once you have written your needs and budget.

Preneed Funeral vs Standard Insurance plans

There are two basic types of Preneed funeral insurance: Standard and pre-paid. Both will help you plan and save funds for all your final arrangements.

Here We discuss Standard Funeral Insurance VS Prepaid Funeral Insurance

Offered by life insurance companies as an entire life policy, these plans are paid to beneficiaries after the death of a loved one to pay the final arrangements, which may include:

  • Funeral Services
  • Transport
  • Opening and closing of the tomb
  • Coffin
  • Headstone, Vault, flowers, obituary listings
  • Cremation (Learn more: How does cremation work?)
  • Urn

Your loved one can also work with any service provider you want. The beneficiary may choose to apply some or all of the funds to other expenses or debts of the deceased, including:

  • Legal Services
  • Medical bills
  • Credit card debt
  • Mortgage, automobile, personal or other loans

Preneed Funeral insurance

Pre-paid arrangements are offered by life insurance companies and, in some cases, funeral homes. However, these funds are delivered directly to the funeral home with which you have chosen to work instead of a designated loved one. They are paid almost immediately after death.

Pre-paid insurance can help people save money by allowing them to pay for services that can be more affordable today than they will be in the future. However, if you pay more for your plan than for your funeral, your loved ones will not get the difference (the same is true for funeral insurance). That means that if you take a $10.000 plan but your final arrangements only have a value of $9.000, the funeral home will not give your loved ones the remaining $1.000. Learn more about what to do when a loved one dies.

Best Burial insurance plan for Seniors

Choosing the right plan is a very personal decision and there are many important factors you should consider when making your decision, including:

  • How much coverage you need
  • If the insurance provider has family support services
  • Whether or not you want to have a medical examination
  • How much is the average cost of a funeral in your area?

Buying funeral insurance Plans with Best Companies is like buying a car. Each policy shall have the same basic characteristics, but the finer details will separate one policy from the other. Be sure to choose a policy that supports the specific reason you are securing.

Types of Funeral insurance premiums

A premium is an amount you will pay for your policy in each period. In most cases, you will make monthly payments. Funeral insurance premiums come in different ways.

Staggered premiums

These fees are calculated each year that you renew your policy based on your sex, age and the amount of your death benefit. At first, you’ll pay a lower premium, but you’ll pay more each year as you get older.

Leveled premiums

These rates are also established using your sex, age and the amount of your policy. Their rates are usually set for life while they are paid. They cannot increase due to changes in age or health.

Limit premiums

These plans have a monetary or age limit set. Once you’ve reached it, you’ll keep your coverage, but you won’t have to pay premiums anymore. For example, if you have a limit of $10.000, you will not have to pay more premiums once you have paid that amount. If your policy has an age limit of 95, your coverage will continue, but you will have finished paying the premiums once that birthday arrives.

Payment guarantee Premiums

It is guaranteed that your beneficiary will receive the payment that is higher: the exact amount of premiums you paid or the original amount insured.

Funeral insurance With no waiting period

Many providers offer plans that are guaranteed to pay the full amount of the death benefit as soon as the first payment is made and the application is approved. This means that if you make single premium payment and then you die, your beneficiary will receive the total amount that was covered (as long as no false information has been given to the insurer).

These plans require you to answer basic health questions when you apply. You do not need to take a medical test, give blood or urine samples, or provide your medical history. Coverage is directly looking for your answers to health questions in the insurance application. It is important to answer these questions honestly. If there is a discrepancy, the claim for your policy may be denied.

Funeral Insurance Quotes Online 2019

Many companies that offer final expense insurance offer a free online quote and allow you to sign up on their websites. You can compare multiple policies from several companies to help you decide which plan is best for you.

Whether you do a research on your own or work with a life insurance agent, it’s a good idea to get several quotes so you can evaluate your options. Everyone has different needs and when you enroll in the first or the cheapest plan you find, your loved ones may not have all the funds they need to carry out their final desires.

Funeral Insurance plans for Parent

For the most part, there are no family plans for funeral insurance. Remember, policies are determined by age and sex, and sometimes by the health of the applicant. This makes it difficult for companies to group people into a family plan.

If you, your parents and/or other family members are considering getting one of these policies, it’s worth calling some companies to see varieties that are available. People also often ask if they can buy life insurance for their parents.

Contemporary Alternatives to Traditional Funerals

Many people depend on life insurance to cover their final expenses. This may be a good option, especially if you have a large policy that will cover your final arrangements in addition to other debts and expenses your family is responsible for after your death. However, these types of policies have different requirements, norms, and approaches that funeral or burial insurances.

Funeral insurance Policy

Burial Insurance vs. Life insurance

The Funeral insurance termed coming from life insurance, but it has a much lower benefit amount than traditional life insurance policies. This is because funeral insurance policies are intended to deal only with final arrangements, while life policies are taken to cover a wide range of needs, such as income replacement.

Although funeral insurance benefit payments can be used for other expenses at the discretion of the beneficiary, the amounts of such benefits are intended to cover only the final arrangements. That’s why they are generally offered in amounts from $5.000 to $20.000, while traditional life insurance can offer benefits of hundreds of thousands of dollars.

Temporary Life insurance

Temporary life insurance covers you only for a set period of time. Once that period of time is over, you will need to buy another policy to stay covered, usually at an updated rate. If you do not renew your policy and you die, there is no policy protection. Because we don’t know when we’re going to die and we can’t predict if it will happen within the policy term, this is not a good option to pay the final expenses.

Although you can renew these kinds of plans, they cost you more as you get older, so you can end up paying more money than you would pay if you signed up for funeral insurance. If you are thinking of using temporary life insurance to pay for your final arrangements, check your policy to see if it can be converted to a whole life policy or other permanent plans. Using this option becomes more expensive as you get older, so it’s best to do it as soon as possible.

Universal Life Insurance

In most cases, universal life insurance is not a good option because it depends on interest rates. When interest rates increase, these policies grow in value, but as they fall, more money is needed, in the form of higher premiums, to be beneficial to consumers. If you have one of these policies, you can transfer your value to an entire life policy.

Whole life insurance Policy 2019

These are not usually an ideal option simply because they are expensive. There is no evaluation process involved, which means that the provider does not assess the risk of providing coverage to applicants.

This usually means that everyone pays a much higher rate than they would pay with the traditional whole life insurance, to compensate for the risk the insurer is accepting. Because these options are often attractive to people with problems finding life insurance coverage, for example, an 80-year-old man who has suffered three strokes, these policies can cost much more than other options. The best information regarding how to choose the right burial insurance policy you may visit here.

Funeral Insurance Faq

Do I need funeral insurance?

If you have a substantial life insurance policy when it came under the funeral additionally to your other expenses, you may not need funeral insurance. However, if you have had trouble getting a life insurance policy because of your health or age, funeral insurance can provide great financial relief to your loved ones as you generally don’t need a medical exam to get one and are offered to Pers Onas up to 85 (some companies offer policies beyond 85 years). Coverage is usually issued based on your answers to health queue in the insurance application.

However, you should keep in mind that it may take longer for a person to receive a life insurance payment than the funeral insurance payment depending on the insurance company. If you plan your funeral expenses to be covered by your life insurance, be sure to know all the details about how long it will take your loved ones to receive the funds.

Does life insurance cover funeral expenses?

Life insurance can be used to cover funeral expenses. However, since life insurance is paid to a beneficiary, it is up to that person to decide how the funds will be used. If the other debts of the deceased are significant and the beneficiary needs to use the death benefit to pay for all or most of those expenses, they may decide to use another form of payment for the funeral.

What does the funeral insurance cover?

That helps to cover the costs of a person’s final arrangements, such as the memorial service, coffin or urn, and burial or cremation. If there are any remnants of the burial policy after these services are performed, the beneficiary may use it to pay for any other expenses that may have left a pending payment, including loan balances, medical and legal bills.

How much funeral insurance do I need?

The average funeral in the United States varies from $7.000 to $10.000. This includes funeral services, burial or cremation, a coffin or urn and the purchase and installation of a tombstone in the cemetery. You may need more or less of this amount to carry out your final desires, but in general, taking a funeral insurance policy of $10.000 should cover these expenses.

Does social security help pay for funeral expenses?

The federal government pays $255 to a person’s survivors to help them cover the final expenses, but only if they meet certain requirements.

Convert life insurance Policy into a burial Insurance Policy?

You cannot turn a life insurance policy into a burial policy. Many people believe that you can because life insurance policies are often used to pay for funerals, but you can’t make this change. The easiest way to make sure your life insurance policy covers your final expenses is to document them with your last wishes and share it with your loved ones in advance.

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