It is important for you to understand the importance of burial insurance so that you can leave your family with peace of mind knowing they will not suffer financially after you pass on. Burial insurance guards against financial hardships by providing cash for all costs associated with the funeral and burial.
Without burial insurance, most families will have a hard time coming up with burial and funeral funds quickly. Burial insurance can save families from having to withdraw from their savings or sell assets to come up with the necessary funds to bury a loved one.
Burial insurance is all the more critical today since more and more people are entering into their elderly years and approaching retirement with insufficient funds. The need for burial insurance is more crucial now than ever. If you’re wondering is burial insurance worth it? We will help shed light. The goal of this article is to shed some light on the significant benefits of burial insurance and why we need some.
FOR EASIER NAVIGATION:
WHAT IS BURIAL INSURANCE?
Burial insurance also called funeral insurance, cremation insurance, or final expense insurance.
Burial insurance is a whole life insurance policy designed to cover the cost of funeral service, burial, and other outstanding bills.
Burial insurance is a permanent plan that is designed to last a lifetime. It is NOT a term life insurance policy or a policy that EXPIRES at age 80. Be careful because some insurance companies like AARP and Globe Life will try to sell you term life insurance plans but they market it as burial insurance.
When you die, the burial insurance company will issue a tax-free check to your assigned beneficiary. The death benefit payout money can be used however your family sees fit. They can use the money to pay for your final expenses. If there is anything left, your family can keep it.
Benefits of Burial Insurance:
- It never expires due to age. They last a lifetime.
- Monthly premiums are fixed. They will never increase for any reason
- The death benefit is level. It is guaranteed never to decrease
- No medical exam required to apply for coverage
- Small face value options
WHO CAN APPLY FOR BURIAL INSURANCE POLICY?
Anyone who is 0-89 can apply for burial insurance. Few factors determine burial insurance eligibility such as:
- Age: Some plans are not available to all ages.
- State of Residence: Some burial insurance plans are not approved in every state.
- Health: You must qualify based on health, however, some plans have no questions at all.
The most common age of availability is 50-85. Your general health, your state of residence, and if you are younger than 50 or older than 85 will determine your options
WHO NEEDS BURIAL INSURANCE?
People in these situations need burial insurance:
- Those who have no life insurance coverage.
- Those whose savings are not enough to cover the cost of a funeral.
- Those whose family and friends do not have the financial capacity to cover the cost of funeral and burial expense.
- Those who have outstanding debt.
- Those who don’t want to burden his family when they pass away.
- Those who want a separate insurance policy to cover his final expenses.
- Those who are paying off medical bills or debts
- Those who have cash but don’t want to use it for final expenses.
- Those who want to leave a charitable donation to an organization or person important to them.
BURIAL INSURANCE IS UNIQUE IN THREE DIFFERENT WAYS:
#1 – Relaxed underwriting
One of the unique characteristics of burial insurance is relaxed underwriting. Most of the health conditions accepted by burial insurance would get auto declined for any traditional life insurance policies.
Relaxed underwriting enables most seniors with high-risk conditions to easily qualify for a policy.
#2 – No Health questions policies
Even though burial insurance has relaxed underwriting, some health conditions are so risky they are classified as uninsurable. For these high-risk health conditions, there is a guaranteed issue policy with no exam and no health questions.
Applicants are guaranteed acceptance regardless of medical conditions!
#3 – Low face value options
Some burial insurance companies will let you purchase as little as $1,000 in coverage; no other type of life insurance will let you buy such a small amount of protection.
Most companies offer face value options from $2,000-$25,000. Some carriers go lower, and some go higher, but you have the freedom to buy what you need.
DIFFERENT TYPES OF BURIAL INSURANCE
You can either apply for a non-medical burial insurance plan that has a brief medical and prescription records check, or you can apply for a burial insurance plan that asks no health questions.
A policy with no health questions is called guaranteed acceptance life insurance. Non-medical exam burial insurance policies fall into three different plans. Your health will determine which plan you will qualify for.
Every insurance carrier will ask different health questions, after that they will electronically analyze your prescription history to verify your health status.
Here are the three plans for underwritten burial insurance:
If you answer no to all the health questions, you will easily qualify for a level benefit plan.
You are covered immediately upon approval and first payment, and your beneficiary will receive the full death benefit if you pass away. There will be no waiting period if you qualify.
A level death benefit is the best possible rating you can receive. You will be able to access the insurer’s lowest possible rate. “Preferred” is the other term for the best rating plan.
A graded benefit plan is a medium option where the insurer views your health profile as riskier.
You would get this policy if you answered yes to some of the health questions. You will be charged anywhere from 15-40% more for your policy. Graded plans provide partial protection on the first two policy years.
For example: Your death benefit amount is $10,000, many insurance providers pay 30% of the benefit amount if you die in the first year, 70% in the second year and 100% after two years. Each insurance company has its own payout schedules; it is important to read the fine print to understand your policy details before purchasing a policy.
A modified plan with underwriting is designed for high-risk applicants, and the company charges 15-50% more on your premiums. They will offer you a modified plan if you answer yes to the health conditions under the “modified” part of the application. Events like stroke, heart attacks, or cancer within the last year will put you in modified benefit.
There is a two-year waiting period. If you pass away during this time, the insurance company will not pay out the full benefit of your policy. Instead, they will return 110% of your money. Modified plans return premiums plus 10% interest during the first two years. However, if you die from an accident, they would pay out the full death benefit.
Guaranteed Acceptance Burial Insurance
Even though burial insurance has a lenient underwriting, some medical conditions are so risky they are considered uninsurable for coverage in the first two years. Guaranteed acceptance is the only option. If there is no such plan available, people with these health conditions will not get coverage at all.
These are plans have no medical exam and no health questions. Your approval is guaranteed if you satisfy the age requirement.
Guaranteed acceptance has a two-year waiting period. If you die during the first two years, the insurer will only refund the premiums paid plus 7-10% interest. Since the insurance carrier is taking more risk, they charge more to compensate for the increased risk.
A Guaranteed acceptance policy is your only option if you have any of the following health issues:
- Alzheimer’s or Dementia
- Currently in a hospital or nursing facility
- HIV or AIDS
- Hospice Care
- Terminal Illness
- Recommended to have an organ transplant
WHAT ARE THE COMMON BURIAL INSURANCE UNDERWRITING QUESTIONS?
These are the most common questions asked when applying for burial insurance:
- Are you currently confined to a bed, assisted living facility or nursing home?
- Are you dependent on a wheelchair?
- Are you terminally ill?
- Are you using oxygen to assist your breathing?
- Have you been treated for heart attack or stroke in the last 12-24 months?
- Do you have any an aneurysm that has not yet been repaired?
- Do you have cardiomyopathy or congestive heart failure?
- Are you currently receiving dialysis treatment?
- Have you been diagnosed with kidney disease?
- Do you have liver disease?
- Are you diabetic? Are you Insulin-dependent or on an oral medication?
- Have you been treated for any type of cancer in the last 12-24 months?
- Do you have AIDS or HIV?
- Have you ever been diagnosed with dementia or Alzheimer’s disease?
- Have you been convicted of a felony?
WHAT IS THE COST OF BURIAL INSURANCE?
Generally, the younger you are the less burial insurance will cost. Different factors such as determine the cost of burial insurance
- Face Amount
- Health history
- State of residence
- Tobacco usage
The average monthly premium for a $10,000 burial insurance is about $50 per month. The amount might be higher or lower depending on the different factors.
Fill out our instant BURIAL INSURANCE QUOTE form on this page to get a custom quote.
WHY IS BURIAL INSURANCE IMPORTANT?
- Burial insurance is more affordable compared with pre-paid burial plans. You will only need to make a low monthly payment for lifetime insurance coverage.
- Most people will qualify for coverage because medical exams are not required. You will only need to answer a few health questions.
- Burial insurance allows you to select a beneficiary. You can choose your partner or a relative as your beneficiary to ensure your funeral wishes are carried out and funds are properly distributed.
- Burial insurance has a fixed premium which is guaranteed to never increase due to health or advancing years. The death benefit is level and guaranteed never to decrease as long as premiums are paid on time.
- Burial insurance covers all costs related to your funeral and burial or cremation. Your plan will help your family pay for the coffin, memorial service, headstone, and even all of the small details like the flowers.
- While a burial insurance policy is designed to help pay for the final expenses, any leftover money from the payout can also be used to help take care of any debts such as car loan and credit card debt that you may leave behind.
- Burial insurance is portable. The insurance payout can be used at any location since there is no contract with a specific funeral home. You can use the payout even if you moved to a new location or have a new funeral preference.
- You have full ownership of your policy. You choose the beneficiary of your policy. You are not obliged to make the funeral home your beneficiary. If you find a funeral home that is cheaper than the originally planned, your beneficiary will get the difference. Your family can use the death benefit as they please.
- You can borrow against the tax-deferred cash value of your burial insurance. It means that aside from preparing for your family’s financial future, you also have an available line of credit in case of an emergency.
- Burial insurance is flexible. Its flexibility extends to your choice of funeral service providers. You can allocate funds without being tied to a particular funeral home. Burial insurance leaves your options open, and this is a great benefit given the length of time that will pass between choosing a provider and using the policy.
INTANGIBLE BENEFITS OF BURIAL INSURANCE
The reasons for choosing burial insurance are not only financial. Other things like time and peace of mind play a big role to say that the plan is right for you.
Ease the financial burden on your family. Planning and paying for a funeral is a great expression of love for the family. When you purchase burial insurance for parents, you are making sure that your loved one can grieve without worrying about the funeral and burial costs.
Buying burial insurance allows you to plan ahead. Making financial decisions about your death is not easy. Purchasing funeral insurance for parents in advance gives you the time to plan ahead and find different options suited to your needs.
Be at peace knowing your funeral will represent your personality. When you buy burial insurance, you can plan ahead to make your ceremony reflect who you really are. You can discuss your wishes with your beneficiary so that your service will be what you really wanted.
Your family will have instant funds to use for your final expenses. Burial insurance doesn’t go to probate, and your family will have the funds to pay for your funeral. Burial insurance makes money immediately available so your loved ones need not pay your final expenses out of their pockets.
WHAT YOU SHOULD KNOW ABOUT PREPAID FUNERAL PLANS OFFERED BY FUNERAL HOMES
- Your funeral service can be planned in advance, letting your family know about what you really wanted.
- You can pay the preneed funeral insurance upfront.
- Prepaid funeral plan is an exclusive contract with a specific funeral home. You are limited to the service area covered the company.
- If you moved away from the company’s service area or your plans changed, you may not be able to use your prepaid plan because you are no longer covered.
- A prepaid plan may not cover future expenses. Review your prepaid contract before signing them. You can even hire a lawyer to help you.
- The goods and services you selected on your prepaid plan may not be fixed due to market fluctuations. Asked if the prices are guaranteed in the future. If not your family will have to pay for the difference.
- Your family needs to pay the taxes on interest or income that accumulates on invested funds.
- It’s common for funeral homes to mishandle or mismanage the money you pay them for your prepaid plan. Be sure to trust an established company before purchasing a prepaid plan.
- You’re not obligated to purchase a funeral package that includes services and goods you don’t need. You are not forced to buy everything through your prepaid provider. Embalming, coffin and memorial service can be purchased separately if you find a cheaper price through another vendor.
- You have several rights and disclosures according to the Federal Trade Commission’s Funeral Rule. Some aspects of your prepaid funeral plan are within the state jurisdiction and the funeral rule may not apply to you. Your protection varies from state to state.
- The Funeral Rule states that the funeral home should provide you with an itemized list of services they provide.
- The Federal Trade Commission recommends that you shop and compare prices from at least two funeral homes before buying a prepaid funeral plan.
HOW TO APPLY FOR BURIAL INSURANCE?
Step 1: Look for an Independent Life Insurance Agency
Look for an independent life insurance agency life Funeral Funds on the internet. Working with an independent life insurance agent is crucial in the application process. An Independent agency can shop different insurance carriers depending on the underwriting requirements, and they can find the most affordable plan.
Step 2: Select your burial insurance plan from A-rated Company
You can buy senior life insurance from different insurance companies. Choose an A-rated or better company. A good financial rating indicates that the company is financially stable and has a history of paying beneficiaries on time.
Step 3: Answer the health questionnaire and complete the phone interview
Fill out the burial insurance application. Most burial insurance carriers require a phone interview to make sure all the questions on the application are filled and your agent completed all the details.
The insurance provider will check your prescription history and your medical background through the MIB. This is to verify your answers to health questions and your medical records are the same.
The phone interview with the underwriter usually takes about 15 minutes. You will know if you are approved or declined after the call.
Step 4: Select your payment method
You can pay your burial insurance in different ways:
- Credit or Debit card
- Monthly EFT or direct withdrawal from your bank (this is the preferred method)
Paying your first premium on the same day you apply is not required. You can choose any day. You can even schedule it when you receive your social security benefits. You are allowed to select the future date of your first premium up to 30 days.
Step 5: Receive your policy
Insurance providers are prompt in delivering burial insurance policies. The main difference between term life insurance and burial insurance is that most burial insurance carriers send the policy directly to your home instead of letting your agent deliver your policy.
Step 6: Explain your final wishes to your family
Communicating your plans to your beneficiary is essential. Let your family know about your life insurance and where it is located. Most burial insurance providers offer free planning guides and request booklets which allows you to record the details of your end-of-life plan.
DIFFERENT WAYS TO COMPLETE AND SUBMIT YOUR BURIAL INSURANCE APPLICATION
The application process varies by company, but it can be completed in different ways:
Voice Signature: Complete your application over the phone. You fill out the application with your agent during the phone interview. It will only take a few minutes to complete.
You don’t have to sign any paperwork. You will know the result after giving your voice signature.
Email Signature: Application using an email signature lets your agent collect all your information to fill out the application. Then you will receive an email from the insurance company to sign.
Sign the email via your tablet, phone, laptop, or PC. The signed application will then go to underwriting. You can get an instant decision or wait 1-4 days to get your result.
Paper Application: Traditional paper application is also available. You can supply your agent with all the information for him to fill out. Then he will send the application to your home to sign. Send the application to the company after signing the form. You will get the decision after 1-4 days.
HOW TO FIND THE BEST BURIAL INSURANCE POLICY
The best burial insurance policy for you is the one that is affordable that protects you as soon as possible.
The process of finding the best and most affordable policy is simple. You need the help of a highly experienced independent agent that has access to many insurance companies. They will shop and compare prices for you to determine the insurer that will offer you the best deal.
By using an independent agency like the Funeral Fund, you will be assured the best pricing and coverage for your age and health.
Call us at (888)862-9456 if you want to protect your family’s future by investing in a burial insurance policy. We will help you find the best plan that will meet your needs and budget.
Need burial insurance? Instead of wasting hours talking to different agents answering the same questions over and over again, let us do the work for you to find affordable burial insurance.
Fill out the instant QUOTE form on this page and we will give final expense insurance quote with the best rates available.
Funeral Funds is an independent insurance agency that can shop your application to many companies available. This way you can be sure that you are going to get the best carrier that favors your age and health.
We work with the top-rated life insurance companies in the United States, many of which offer immediate coverage with the lowest rates.
If you need help finding burial life insurance, please don’t hesitate to contact us at (888) 862-9456.