Who Needs Burial Insurance? – Podcast Episode 24

In this podcast, I’m going to be discussing who needs burial insurance. And I’ve got five things to share with you today. Number one is people age 50 to 80. Generally, now, there’s going to be some people that need this coverage that are younger. And there’s going to be some people that need this coverage that are older, but on average, it’s age 50, to age 80.

Now, the reason we say that is that’s the age that most people are going to retire or go out of the workforce, either voluntarily, or, you know, maybe due to workplace injury or something, and they’ve been put on permanent disability. And when that happens, you lose all your employer provided benefits, which in some cases, included some complimentary life insurance, I mean, that may have been just included with your benefits package, and it may have been like, one times your salary.

1:28

So if you made $50,000 a year, you could have had a $50,000 policy. But when you leave work, it goes away. And some people also, this is more so many years ago, I guess. But some people, when they retired from companies, they actually had a permanent type, death benefit. But in many cases, it started out at say $20,000, but then it would start cutting in half. So it might go from 20,000 to 10,000, down to 5000. or some variation of that.

So what ends up happening is the older you get, and the longer you live, the more your coverage goes down. And it’s kind of interesting that happens. Because as you get older, that’s when you actually need the insurance the most. But regardless, whether you lost your insurance, or you have some declining coverage,

2:22

That’s often why people aged 52 at Go seek out this insurance, which leads to a number two point who needs burial insurance is those without life insurance, right, we just talked about a couple of ways that you actually lose your life insurance, or you have some sort of declining coverage amount for your insurance. So yeah, if you don’t have burial insurance, and you don’t have the money saved up to pay for a burial in your checking or savings account, then who’s going to pay for this.

2:56

I mean, we live in a world where nobody’s got like just extra money sitting around to pay for other people’s bills, much less, you know, throw five 810 $20,000 for a burial for somebody who just didn’t do some planning. So if you don’t have life insurance, now’s the time to look at getting it in place, and getting approved at your youngest age. Because generally speaking, the older we are, the more health problems we get. And the more health problems we get.

The in many cases, the more challenging it is to get first day coverage. And we don’t recommend to your waiting period plans, which won’t pay out in the first two years. If you die of any health or medical reason, we always recommend first aid coverage. That means when your policy is approved and issued and goes in force, if that happened on the first of the month, and you died of a heart attack, the second of the month, the insurance company would be obligated to pay the whole death benefit, even though you’d only made one premium payment.

So maybe you made a payment of $50. And you had a $20,000 policy, they got 50 paid $50. And then they turned around and have to pay $20,000. So it’s kind of like bad luck on them. But you know, for every person that you know, dies, the next day, there’s somebody who’s going to live a lot longer as well. And that’s how they do it. They just offset the risk with a whole bunch of different clients 1000s and 1000s and 1000s of policies out there.

4:31

So the number three reason about who needs burial insurance is those with limited funds, and we kind of talked about that in number two a little bit. But if you don’t have that money saved up, if there’s no reasonable expectation that you ever will have that money saved up, and if there’s no other sugar daddy or a family member that’s just loaded down with cash that’s just said to the entire family. When everybody dies, I’m gonna pay for this, then you should really get burial insurance. And the reason is, you know, there’s people as a rule are very kind and wonderful. But thing is, when nobody has insurance, everybody’s relying on everybody else.

And, you know, can do fish fries, and, you know, bingo things and go fund me and all this other stuff. But at some point, you know, people can only give so much, and relying on people, family members and strangers to pay for something that is no surprise. I mean, you’ve known since you’re like an adult, the entire time you’ve been around that someday you’re gonna die. And, you know, you just can’t fool yourself and have this is guaranteed Another day, another month, another year, another minute.

5:55

So yeah, just, you know, take action before it’s too late and, and really just protect your your family members and loved ones. And you can have that peace of mind knowing that you’re not going to be a burden on them too. And you’re not going to have to worry about, you know, the legacy you you leave behind being one of making, or actually forcing other people to pay financial obligations that are not theirs in the first place.

6:21

Which leads us to our number four point who needs burial insurance, those who don’t want to burden their loved ones, right? You know, I can, I can tell you one thing, when somebody passes away, there’s a lot of stress on family members and loved ones and just extended family. And as a rule, when when that death happens, you know, people are shocked a lot of times, it’s just out of the blue, you know, they had a heart attack.

And, you know, they hit the ground and they were dead, right? They, they died in their sleep, you know, just or you got cancer, and you know, within months they were gone? Well, the thing is, is, you know, if you if you do get a diagnosed with a significant health issue, and you don’t have this insurance, you may not be able to get anything except a two year waiting period plan, because those two year waiting period plans are designed for the unhealthiest of all people, and therefore they are ultra high risk policies. And then therefore they are ultra high priced.

You know, those plans, you’ve seen them advertised on TV, that 997 plan? Yep, that’s a two year waiting period plan, you know, you might only get four or $500 for that 997, depending on your age, you know, what good is that kind of coverage is going to do? So yeah, just if you don’t want to burden your family members and loved ones, and you don’t want to leave a legacy of just dumping these these expenses on them when it had nothing to do with them, then yeah, burial insurance is a phenomenal product, which leads to our fifth topic is those with specific final expenses need burial insurance.

8:09

So some people may have very specific things that need to happen when they pass away, and it could just be out of preference. It could be just, you know, family members have always done it that way. And maybe they want to be buried in a specific place or something like that. It could be cultural or religious, where certain things need to be done in a certain way that are more expensive than just a traditional burial. You may have additional medical bills or credit card debt, or other things that need to be paid off. That, you know, you just want to make sure that those aren’t going to be a burden or that those wouldn’t have to be, you know, paid out of the the estate, which kind of ties things up with with your state when collectors and debtors are coming after your estate because they didn’t get paid.

So if there are specific final expenses, then this insurance can be just a terrific option. Now, I will tell you this, you know, as you get older, the insurance becomes more expensive. And it becomes it just it just becomes more challenging for people to fit in their budgets, because most of the people we help are either on Social Security or disability, so fixed or limited incomes. So if you want to make sure you have enough insurance, it’s always better to start early.

9:34

The types of plans we help people with for final expenses, they’re permanent whole life plans, which means it’s going to last your whole life. You know, most of the companies go all the way up until age 121. So you never have to worry about once you get approved for your policy. You’re good to go. You don’t have to worry about this. But the nice thing too is if things are tight financially, you can always start smaller.

So you could start at 5000 or 10,000 and we can come back and revisit that later and add another 5000 or 10,000, or 15, or 20,000, whatever it would be. So there’s just a lot of flexibility. With these burial insurance plans there’s, there’s a little bit more to them than meets the eye. For, you know, the average consumer who’s not aware of how these policies work. We can run through all of those with you.

10:24

You’re not going to typically qualify for every plan out there if you have some health or medical issues. That’s why we work with so many different insurance companies because we only help people with first aid coverage or benefits. We do not help people with two year waiting period plans. So if you’ve got some health or medical issues, we can typically 90 to 95% of the time, we work with different insurance companies to get you that first day coverage at the lowest pricing.