The issue of covering burial costs for parents is one that few people want to have, but they must if they want a proper funeral service. To make plans well in advance will save a considerable amount of time, money, and complications compared to scraping together enough money for the funeral after the parent has passed away.
One economic answer is providing coverage through funeral insurance for parents. This is a low cost, effective means of paying for burial costs without strapping your finances. Click here to see the rates.
What is Burial Insurance for Parents?
Burial or funeral insurance is very similar to term life insurance in that a premium is paid that builds up over time to cover the benefits promised by the policy. However, one big difference is that funeral insurance is usually far less expensive than traditional life insurance. This is because the burial insurance cost is only designed to cover the funeral itself while traditional life insurance may cover the loss of income, debt, and other payments.
The average cost of a funeral today is roughly $9,000. The cost has gone up noticeably in the past decade when many policies were set at $6,000. So, it will be important to set $9,000 as the lowest threshold for getting a burial insurance policy.
One important question will be when to start a burial insurance policy as many have a minimal amount of maturation time before the benefits go into full effect. This means that it is generally best to start up a policy as far in advance as possible so that it will be fully mature before it is needed.
How Much are the Monthly Premiums?
This will depend on a number of factors which include the age of the parents, the amount of coverage desired, the gender, and whether they smoke or not.
For example, a $10,000 policy which will cover the average cost of a funeral for a 52 year old non-smoking man will generally be $386 per year or $35.03 per month as there is an additional deposit for monthly payment which raises the overall total to $420 per year.
Naturally, as the age of the parent goes up so does the cost of the funeral insurance. The good news is that the earlier you start, the lower the cost will be for the premiums. However, it is difficult to near impossible to get burial insurance for elderly parents who have passed the age of 80. At that point, you are better off going to a funeral home for one of their pre-planned services which can also be paid per month.
For those who are concerned about not having enough money to cover funeral costs getting burial insurance may be the best answer. This is especially true if you start the coverage as early as possible. Most plans will be fully paid for after a pre-set number of years so by the time which means that it may fully mature long before the benefits are needed.
If you are looking at covering the costs of your parents’ funeral, then getting burial insurance is arguably the most economical answer.