Losing a parent is a painful and emotional experience, no matter how old you are. Thinking about your parents no longer being a part of your life could be your biggest fear come to life. The pain of losing them will be doubled if you have to worry about paying for the funeral among other things. Buying burial insurance for parents is a great way to grieve without thinking of the financial worries.
Purchasing burial insurance for your parents ensures that you will give them a respectful burial when they pass away.
It’s not an easy subject to talk about, but getting burial insurance for parents should be a priority. The cost of a proper funeral is rising each year which makes the death of a parent a real and ever approaching expense. The sooner we realize this fact and take action the easier it will be to shoulder these expenses when they occur.
The first step will be to discuss with your parents about the benefits of burial insurance.
Sitting down and having a meaningful conversation with your parents will be beneficial to both of you. Although this kind of discussion is uncomfortable and awkward, this will bring everyone peace of mind.
Think about it: the last thing our parents want is to burden us when they pass away. Having the proper burial insurance will get rid of the burden and ensure that all final expenses are covered.
For families concerned about burial expenses for their parents, the sooner this issue is faced head on through adequate burial insurance coverage, the greater the peace of mind for the whole family.
Proper burial insurance for parents means starting early and finding an affordable policy that provides at least $10,000 worth of benefits to cover the final expenses for each parent.
WHAT IS BURIAL INSURANCE?
Burial insurance policies or final expense plans are a type of funeral expense life insurance policies designed to handle the cost of funeral or cremation expenses when folks pass away. Burial insurance is a good investment option for folks looking for ways to pay the final expenses.
You can purchase burial insurance inexpensively for elderly parents, and it doesn’t require medical underwriting. Your insurance agent will ask some basic questions, and your parents will be covered for the rest of their life.
Burial insurance policies are permanent coverage or whole life insurance policies with a death benefit ranging from $5,000 to $25,000. The policies do not have a term or specific period of coverage, and it will not expire as long as the premiums are paid.
These policies also include a cash value component that can build up savings over time. Insurers offer burial insurance to individuals who are between the age of 50 and 85. Some insurance companies offer coverage to those who are over age 85.
CHOOSING THE RIGHT TYPE OF BURIAL INSURANCE FOR PARENTS:
There are two types of affordable burial insurance for parents, the level benefit, and the graded benefit. Take note of the differences between the two and consider them when buying burial insurance for your parents.
- Level benefit or traditional policy. This policy provides the full face amount of the policy (100% of the benefit) the day the application is approved. If your parent dies the day after the policy was issued, the full benefits will be paid. It is best if your parents are still in good health or their health issues are controlled by medications. Otherwise, a traditional policy may not be issued by the insurance company.
- Graded benefit policy. It is the option available if your parents have some health issues. It is a form of a guaranteed issue life insurance plan because it is non-medical and requires limited to no health questions. If your parents have serious health problems, this is the way to go. There is a 24-month waiting period before 100% of the face amount is in force. If the insured dies during the waiting period, the carriers will return the premiums paid with some interest on the money. The interest varies by carriers, but 10% is the most common amount.
An example of a 24 month graded plan:
- First 12 months – 30% of death benefit
- 13 to 24 months – 70% of death benefit
- After 24 months – 100% of death benefit
CAN YOU BUY BURIAL INSURANCE FOR PARENTS?
It is common for children to purchase burial insurance for parents because they don’t want the burden of their parent’s final expenses.
We know our parents will one day pass away that’s why we need to be proactive about the death related expenses.
Some parents don’t have insurance to cover the funeral cost, or they don’t have adequate funds or investments. It is up for their children to invest in burial insurance coverage for their elderly parents.
It’s much cheaper to invest in burial insurance now rather than be burdened with massive funeral bills later.
CAN YOU GET BURIAL INSURANCE COVERAGE FOR PARENTS OVER 80?
Is it too late for elderly parents over the age of 80 to receive burial insurance due to their age? Many burial insurance companies issue coverage to individuals 85 years old or younger and the coverage is effective immediately. There is no waiting period as long as they are medically qualified.
WHY BUY BURIAL INSURANCE FOR PARENTS?
Funerals are expensive and finding a way to pay for the funeral while you are grieving is an additional emotional and financial burden.
Burial insurance life insurance covers the funeral expenses, but our parents may not be able to buy a policy due to financial limitations. If you have more disposable income, and since you will be paying for the funeral anyway, it is wise to go ahead and purchase the insurance policy for your parents.
Today, many children choose to buy burial insurance for parents because their parents have no means to pay for their final expenses. Rather than being hit with a massive funeral bill one day, children purchase burial policy for their parents to ensure final expenses are covered when their parents pass away.
REQUIREMENTS WHEN BUYING COVERAGE FOR YOUR PARENTS
There are some rules and regulations you must follow to obtain burial insurance coverage for your parents.
- Insurable interest – this means that you would have a financial loss if your parents were to pass away. These include funeral bills, medical bills, or leftover credit card bills. Naturally, being stuck with the final expenses is proof that you would incur a financial loss. The mere nature of your relationship meets this first requirement.
- Consent to review Medical History – The Health Insurance Portability and Accountability Act HIPPA indicates that your parents need to give full consent to their medical history to be reviewed. Without this consent, your application cannot proceed. Allowing your parents’ medical history be viewed will let you obtain burial insurance coverage for them.
Your parents will never have to go through an actual medical exam, but you will have to answer some health questions and allow the carrier to check your parents prescription history. The insurance company will need to assess your parents’ health to get them approved for the best burial policy. This allows the insurance company to medically determine if they are eligible for coverage.
WHAT KIND OF BURIAL INSURANCE COVERAGE DO YOUR PARENTS NEED?
Talk to your parents about getting a burial insurance coverage for each of them. Ask them these questions to learn what kind of coverage they need:
- How much burial insurance coverage are you interested in?
- What medications are you taking?
- Do you have a chronic illness?
- Are there any hospitalizations within the last 24 months?
- Do you have any heart attacks, strokes or cancer?
Answering these questions will help us identify the burial insurance companies that will accept your parents’ medical issues. This information will help us find accurate quotes to find the most affordable policy for your loved ones.
HOW MUCH BURIAL INSURANCE COVERAGE IS REQUIRED FOR OUR PARENTS?
A funeral is costly! It is one of the most substantial expenses you may incur in your lifetime. The total cost of a funeral runs an average of $8,000-$12,000 depending on your location and the cost of goods and services chosen.
Here’s a rough estimate of some of the funeral costs from the NFDA (National Funeral Directors Association):
- Transfer of remains to funeral home – $310
- Other preparation of the body – $250
- Embalming – $695
- Non-declinable basic service fees – $2,000
- Other preparation of the body – $250
- Use of facilities for viewing – $420
- Use of facilities for the funeral ceremony -$495
- Hearse – $318
- Service car – $143
- Basic memorial printed package -$155
- Metal casket -$2,395
- Vault – $1,327
- Fee for the funeral director’s services – $1,500
- Gravesite – $1,000
- Cost to dig the grave – $600
- Outer burial container – $1,000
- Headstone – $1,500
- Flowers – $500
- Miscellaneous (death certificates, obituary) $600
- There are other bills that needed to be considered. Any outstanding bill left by your parents need to be taken care of these include:
- Medical bills
- Credit card debt
- Loss of income
- Travel expenses of out of town relatives to attend the funeral
Those average numbers above will help you decide how much coverage you need to buy. Purchase the policy that will cover all of your funeral costs as well as the other bills left upon your parents’ death. Purchasing burial life insurance for your parents today can relieve the financial burden and help cushion the financial and emotional blow when your parents die.
THE COST DIFFERENCE BETWEEN A BURIAL AND CREMATION
The average burial service cost anywhere from $8,000-$12,000
The average cremation service cost anywhere from $1,500-$5,000
The cost difference between burial and cremation is big, but your parents’ final costs will be determined by the type of services you select for them.
HOW TO FIND THE BEST BURIAL INSURANCE FOR PARENTS
Begin the process by looking for a plan to offset the funeral cost. Check out the different policies and package levels for burial insurance. It helps to shop around at different insurance companies to find the right type of benefits that fit your budget.
If you apply for a plan, you will be the owner of the policy as well as the beneficiary. Your parents must sign the plan electronically (or over the phone voice signature). Most insurance carriers will talk to your parents to do a quick phone interview to make sure they know what they are applying for.
For most insurance companies the age of issue starts at 50, but there are a few that issue plans at a younger age.
85 is the maximum age of issue, but some carriers will go a few years older. These burial insurance policies are excellent for older parents. Burial insurance typically does not have health requirements. And, guaranteed issue policy can be an option for parents with an adverse health condition.
Look for the following criteria when looking for burial insurance:
- Find a burial insurance company with financial stability; one with a financial track record that can pay out all claims.
- Find a policy that will get your parents covered as soon as possible
- Find the policy with the lowest monthly premium
Once you’ve decided to purchase burial insurance for your parents, the next step is to shop for final expense life insurance coverage.
Today is the best time to get burial insurance, letting a day pass will often make the premium more expensive. The sooner you buy, the more you will appreciate your decision.
To find the best burial insurance for parents, it’s important to consult with an independent burial insurance broker like Funeral Funds. We represent more than 20 different burial insurance companies so that we can get your parents qualified for the best price plan.
It is your best interest to work with us which have access to all best rated final expense insurance companies. We will help you understand the best option for your parents based on their current age, health, and financial situation.
What kind of burial policies should I avoid?
TV AND MAGAZINE ADVERTISEMENTS – Most burial policies or final expense policies you see advertised on television or in magazines are sold as “the no-brainer way” to shop for this protection.
In reality, most of these policies rely on you having NO BRAIN to purchase them.
Just about everyone is eligible for immediate coverage and better pricing allowed by these heavily advertised policies that cost an arm and leg.
To make a long story short, it is better to shop with a specialist in burial insurance, like FuneralFunds.com, than to sign up with a company that spends ba-zillions of dollars each month advertising on television and in magazines.
INCREASING PRICE POLICIES – Those TV and magazine final expense policies may increase in price every five years or have a two-year waiting period before your benefits kick in! What in tarnation!?!
These policies aren’t all they’re cracked up to be, and you often end up at the short end of the stick by purchasing burial insurance this way.
These tricky television magazine snake oil salesmen lure you in with an attractive rate, only to have the cost of your insurance increase every five years until you cannot afford the premiums, then you must cancel your policy.
What happens after you cancel the policy? You’ll die and will have wasted all that money because you bought a policy that increases in price as you get older. These policies just don’t cut the mustard for most folks!
Avoid policies that increase in price every year or end at a certain age. You don’t want your family to get hung out to dry when they need this coverage the most.
Seen any misleading internet advertisements?
Yeah, the old “bait and switch” is still alive and well in America….buyer beware!
Why choose Funeral Funds for my burial policy?
Most life insurance agents are fine, respectable people. There are, however, the classic “snake oil” life insurance agents, who will sell you the easiest and most expensive policy possible. The guaranteed issue folks claim you don’t even need to talk to an agent (but you will need to wait 2 years for your coverage to begin…even if you’re healthy). Answering a few health questions will often get you immediate coverage and MUCH better rates.
Avoid these people at all costs!
For the rest of the life insurance agents, who are fine respectable people, they are most often generalists. They deal with all kinds of life insurance policies. They are Jack of all trades and Masters of none. They are nice people, but they are not the logical choice if you want the best pricing and the best policy.
We work with 20+ final expense companies, so we can get you qualified for the best price plan with the intent of getting folks like you immediate coverage when possible.
We have to admit that, for the average burial insurance final expense insurance shopper, all the companies and options will often leave you more confused than a woodpecker in a concrete forest.
How can Funeral Funds help me?
Most insurance agents don’t make the grade when it comes to getting you the most affordable coverage. Getting affordable burial insurance doesn’t have to cost an arm and a leg.
Our job at Funeral Funds is to be the most knowledgeable burial insurance experts available. By doing so, we can knock it out of the park and get you the most accurate quote and affordable rates.
Once we know more about your age and health history, we can accurately give you burial insurance quotes from the final expense companies that are the best fit for you.
The reality is that most inexperienced and less knowledgeable insurance agents just don’t cut the mustard and will cost you loads of money by selling you more expensive policies.
It is always in your best interest to work with an independent brokerage, such as Funeral Funds. With access to all the best final expense insurance companies, we will help you understand your best options, given your current age, health, and financial situation.