Why Burial Insurance?
Whole life insurance plans can be both costly and difficult to qualify for. Burial insurance for seniors is a cost-effective alternative that is significantly easier to secure. This is a special form of term life insurance that pays out a relatively modest sum of money after the death of the policyholder. It is designed to cover funeral expenses or the costs of cremation so that family members are not left scrambling to deal with these expenses.
How Does Burial Insurance Work?
In 2012, average funeral costs totaled $7,000 and this number has only continued to increase over the past several years. For instance, in 2014, these costs averaged closer to $10,000 in many areas. Given that seniors often live on nominal and fixed incomes, most have not saved sufficient funds for funeral services or cremation at their time of death. Burial insurance for seniors comes with low premiums and simple, flexible terms. Consumers can bind enough coverage for traditional funerals and burial or they can opt to cover only the basic costs of cremation.
Burial insurance can also be bound as part of a multi-layer, life insurance plan for seniors with more to protect and who anticipate higher than average, after-death costs. Monies are disbursed to the policyholder’s beneficiaries to use as they see fit. When a final will and testament is in place, this may dictate the manner in which the policyholder wishes to be buried and how the burial insurance monies should be allocated.
Burial Insurance Benefits And Coverage Amount:
Burial insurance coverage amounts can range from $1,000 to $25,000 depending upon the anticipated needs of the policyholder. For those seeking modest, cremation services, policies with limits between $1,000 and $1,500 should suffice. Seniors who want full-sized burial vaults or plots, traditional burial preparations, funeral processions, headstones or markers, flowers and other services and amenities, the related plan limits will need to be significantly higher. When binding this coverage, you will need to consider your funeral plans and your short and long-term budget.
The premiums for burial insurance do not increase as policyholders grow older or when they develop chronic or terminal illnesses. It is important to note, however, that certain health issues that are present at the time of binding the plan could disqualify a senior for coverage or significantly increase his or her rates, including an existing chronic or terminal illness. Although burial insurance is structured to be more flexible than the typical life insurance plan, there are still special restrictions in place.
There are several, impressive benefits that burial insurance can provide, including:
– Financial and stress relief for grieving loved ones
– The ability to dictate burial preferences and the means to have them followed
– An inexpensive way to plan for after-death expenses
– Countless savings strategies for lowering the overall costs of burial services
How Much Insurance Do I Need?
You will need to bind sufficient insurance for covering the full costs of your burial plans, excluding any burial services or products that you have already paid in advance. Cremation coverage or coverage that only covers the costs of cremation is a highly popular option among seniors with very nominal amounts of disposable income. For a very low monthly premium, you can have full cremation services performed along with a short memorial at the cremation company. Limits for cremation coverage typically range between $700 and $1,200.
If you are planning a modest, traditional funeral but have already secured a burial plot, coverage limits ranging between $7,000 and $9,000 should be more than sufficient, depending upon how extravagant you want this event to be. Seniors who bind in excess of $20,000 in burial insurance often have plans for large funerals and lots of burial amenities. Plans can also be used to lock into lower prices for common funeral needs. For instance, elderly parents can save money by using their burial insurance providers to advance pay for their cremation services, urns, caskets or other burial services and products as a way to avoid price increases.
How Much Does Burial Insurance Cost?
Although payouts are inevitable for burial insurance plans, the companies that provide this coverage still perform risk assessments. The cost of a policy will be determined by the coverage limits or the costs of the intended burial plans, the policyholder’s age and his or her current state of health at the time of purchase. Based on these factors, monthly premiums for burial insurance can range from just $10 to $200. As with all other forms of life insurance, smokers will pay significantly higher amounts for their coverage than will non-smokers. Consumers will also have to pay annual policy fees in most instances which range from $30 to $50 each year, depending upon the insurance provider.
Collecting quotes for burial insurance for seniors and making side by side comparisons of both rates and terms is always the best way to identify the most competitive prices and the best overall value. We are offering the best market rate for people looking for an affordable burial insurance. When you apply for 3 quotes (minimum), you have a great chance to get the best rate in the market.
Seniors Can Get More Information About Burial Insurance Here:
Seniors Over 75 – Click Here
Seniors Over 80 – Click Here
Seniors Over 85 – Click Here