Who Is Burial Insurance Appropriate For? – Podcast Episode 27

In this podcast, I’m going to be discussing who is burial insurance appropriate for. So I’ve got four topics I’d like to go over today. The first four who is burial insurance appropriate for is people who don’t have savings or assets. And think about this, if you don’t have adequate savings in the bank or money stashed away, or adequate assets that can be sold to pay for your final expenses or burial insurance. Then final expense, life insurance, burial insurance is a great option.

1:04

Now I’ll add even one caveat to that is that even if you do have enough assets, a lot of times they are not liquid assets. So if it’s like property that needs to be sold, I mean that can take months or even a year in the wrong market to sell. And also, if you do have assets and trusts or locked up in the banks or anything like that, and you didn’t take care of things in advance, then your family’s going to have difficulty accessing those.

And let’s just be realistic, after you pass away, the family is going to need money fast, it’s not like they’re going to have four or five, six months to be able to, you know pay for this and get get access to those assets that you might have. So if you don’t have those savings, if you don’t have liquid assets, then burial insurance is a terrific product.

Because the type of product we help people with is first day coverage. And we don’t recommend plans that have two year waiting periods. So to your waiting period means if you die in the first two years, the insurance company is not going to pay a penny in death benefits, they’ll give you your premium back and a small interest rate. But that’s not that’s not what you want your family to have. You want your family to have, you know the 10 15 $20,000, not the two or $300, you may have put in in premium.

2:26

So yeah, the number two option on who is burial insurance appropriate for is people who are on a tight budget. You know, if you’re on a fixed or limited income, and you’re on social security or disability or something like that, you don’t have the money set aside to like, put 10,000 or 15,000 or $20,000 and pay that towards a prepaid burial plan. You know, so if you don’t have that money to just do a lump sum, what you can do is just get approved for a policy with first day coverage, make payments to the insurance company.

3:05

And here’s the terrific part about first day coverage. That, you know, if you make your first premium payment, you’re approved, everything’s issued and you make your first premium payment on the first of the month. If you die on the second of the month, the insurance company is going to pay the whole benefit, death benefit.

So maybe, let’s say you had a 30 or $40 premium payment on a monthly basis, and you paid your 30 or $40 that first day and you die the next day the insurance company would hypothetically have to pay 15 or $20,000, whatever your coverage amount was, all of that is going to depend on your age and your health and everything. But yeah, I mean, if you just don’t foresee in any way, shape or form, you’ll be able to come up with 10 or $15,000 in the next year or so. And that’s most people, then then this burial insurance works terrifically.

3:56

Now the fourth point I’d like to cover about who is burial insurance appropriate for is people who don’t want to burden their loved ones. So you know, if you don’t care about your kids or family members getting screwed when you die and pardon my language, but that’s what happens. You know, getting screwed the day you die, when one day you’re here and the next day or not. And now they’ve got to come up with 1015 $20,000 out of their own pocket. In most cases, they’re gonna have to put it on a credit card paying 26% interest, if you don’t care about that happened to them. Yeah, don’t get the insurance, just girl, but I’m guessing they’re gonna care about that. And, you know, our family members want to do right by us.

4:35

And, you know, we’ve seen it before when, you know, family members just can’t come up with the money because there’s no insurance, there’s no nothing and, you know, then the body just gets turned over to the county or the state and, you know, they typically they’re just you’re gonna cremate and they’re gonna kind of treat you the same as they would you know, people who die while they’re carceral read it or anything like that.

So, yeah, just it’s just not a good thing in most cases. You know, in the key word here is loved ones, people who don’t want to burden their loved ones. If you don’t love your loved ones, then yeah, Scrum, you know, I guess if that’s how you’re thinking, but, you know, you’re, you’re probably not on this podcast, because that’s how you feel you’re on this podcast and listening to this. Because you actually do care for people and you do have loved ones that you want to protect.

5:33

So burial insurance is just a terrific product for that. Very low monthly payments, you can pay out really big, large amounts of money when you pass away, so that your family members or loved ones, or children are burdened after you pass away. So our fourth and final talking point today on who is burial insurance appropriate for as people with pre existing medical conditions. Now, think about this, you know, most of the companies offer policies from age 50, up to age 80, you know, some are aged 45 to 85. Some are aged 18, up to 89. It just depends on the insurance company, but just spreads primarily people above age 15. Think about it. Who’s more, who’s more likely to have health problems, somebody that’s in their 20s, or 30s, or 40s, or somebody who’s over age 50.

Yeah, it’s good, it’s gonna be the older folks. So with that in mind, their insurance, it’s really geared towards younger people, is often unattainable for older people because of health or medical issues. So when you’re younger, most people just need temporary coverage, like term life insurance, something like that. But when we’re older, you know, turn turn, life is good for if you die at an inconvenient time, or in within an inconvenient period of time, 10 years, 20 30 years. One, we’re looking at a whole life insurance for burial insurance, we’ve, we’ve kind of altered our conversation a little bit on this, and we are no longer like, if you’re going to die.

7:09

As a most people, once they get past age 50 They’re like, Oh, baby, you know, I now understand I’m on the backside of the, you know, 100 years or whatever, that I’ll probably hopefully live. But yeah, it’s no longer if you die, it’s when you die. And, you know, there’s so many health conditions out there that factor in with the different insurance companies, that it can make it very confusing if you don’t have any idea of how to handle the underwriting with the different insurance companies. So I want to kind of demystify that a little bit. You know, most of the common stuff that you’re going to get when you’re older, the high blood pressure, the cholesterol, the diabetes, kind of the Depression, you know, aches and pains and pain meds and stuff like that arthritis, all that stuff, all that stuff, no problem at all with the right insurance company, or companies.

8:07

And we work with a whole bunch of different insurance companies, that funeral friends of America because we specialize in first day coverage. And each company has their own underwriting questions, health questions, and their own underwriting medical requirements. Meaning, you know, they’re gonna want to know if you’ve have specific health or medical things going like, if you’ve got dementia, and you’re on dementia meds, yeah, you’re not getting first aid coverage, right? If you’ve just been diagnosed with cancer, you’re not getting first day coverage.

You know, if you just been put in an assisted living facility, because you can’t perform activities of daily living, you’re not getting first day coverage. And don’t get upset with the insurance company. Because you qualified for this insurance at some point your life, you didn’t do a damn thing about it. So we get people to get pretty frustrated sometimes like it’s not fair. Well, you know, it’s not a an insurance company’s job to wait until you’ve been diagnosed with cancer to give you a policy. That’s kind of like saying, you know, getting mad at auto insurance companies because, you know, they won’t replace your car.

9:17

If you try to buy insurance after you’ve been in an accident. That’s called personal responsibility. And insurance is intended to cover, you know, the unexpected, or if things happen in an opportune time. Insurance is not meant, you know, hey, you’ve put this off for 50 6070 years, and now you’ve just been diagnosed with six months to live and you want to pay an insurance company $50 a month for six months and then have them write out a 15 or $20,000 Check. Doesn’t work out that way.

And I didn’t mean to get real negative on you there but some people just kind of need to readjust their thinking on that, I think because that’s just the way it is. It If you’re in business, you wouldn’t do that if you want the insurance company to So, but the good news is, let’s get this back to the positive oh my gosh, the good news is, is most of the stuff you’re on prescription medication, medication wise, most of the health conditions you have not going to be any problem we work with enough different insurance companies, we can get you approved for first day coverage or benefits.

10:25

Now, there’s a challenge with some agents out there. They’re called, they’re called captive agents. And the companies they work with won’t let them offer any other insurance plans other than that one insurance company. And because of that, you’ve only got access to one policy. And often the underwriting on those is more strict, and they are generally much more expensive.

So we don’t recommend that go if you go to YouTube. We’ve got all my I think I did 310 videos on pricing for every single age from 50 to 85, male to female, and we just really took people in to do a detailed walkthrough that so so take a look at that and that will give you a real good idea pricing wise but you know, so there we go. That’s this podcast whose burial insurance for I hope that was helpful.

NOTE: Show notes are AI transcribed, so there may be some spelling or grammatical errors.