Although it is always a tough subject to broach, getting burial insurance for parents is a must for most families. The cost of a proper funeral has risen considerably in the past several years, which makes the death of a parent an expense that can be difficult to cover unless the proper preparations have been made. This is actually a wise decision to buy decent life coverage for parents, so there is no financial burden on you the day unexpected happens.
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While it is true that people are living longer today than ever, there will come a time when families will be faced with their parents’ funeral expenses. The sooner families realize and take action, the easier it will be to cover such expenses when they occur.
The first step will be to discuss with your parents the issuing of burial insurance, which will actually bring everyone peace of mind. Generally speaking, the last thing parents want is to burden their children upon their passing. Having the proper burial insurance will remove that burden and ensure that all the funeral expenses are covered.
How Much Burial Insurance Coverage do Parents Require?
Thanks to late-night television ads, you may have heard that a typical funeral in the United States costs around $6,000. However, that number is based on surveys that are now several years old. Today, the cost of a funeral in the US runs an average of $9,000, give or take $1,000, depending on the location and the services are chosen, which will incur more fees.
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Despite the disparity in living expenses between each state, the actual cost of a standard funeral is remarkably similar. This is arguable because the US funeral industry is dominated by a few large companies that set the standard for funeral costs. While thousands of small companies handle funerals, almost all of them are influenced in terms of price and services by the few large ones.
How to reduce funeral costs for parents?
While there are certain steps that can be taken to lower the cost of a funeral, such as a gravesite-only service. The truth is that burial insurance for your parents should be enough to cover the maximum amount of what the funeral will cost from beginning to end. Plus, there are cost considerations that many people believe are actually part of the funeral expense but are not.
- Grave Marker
- Body Preparation & Embalming
- Hearse, Obituary Listing, Death Certificate & More
While there are certain steps you can take beforehand depending on your income, for many people buying burial insurance for parents is the easiest and most often the least expensive step. Proper burial insurance offers a low monthly premium, providing adequate funds to cover all funeral expenses.
In most states, burial insurance should be at least $10,000 to adequately cover all expenses.
This can be lower if the plot has already been purchased or you have other assets already in place to cover the expense. Be aware, however, that the cost of funerals continues to grow, and the coverage you have put into place may need to be augmented in the future.
Can I Buy Burial Insurance for My Elderly Parents?
Yes, you can buy burial insurance for your parents. Compare the rate with us by clicking here.
In fact, a significant part of the life insurance industry is geared toward covering the funeral expense of loved ones who pass away. Specific types of burial insurance will cover all the funeral expenses.
However, unlike life insurance, for example, in which the parents may bequeath their children as beneficiaries, burial insurance is geared towards simply the cost of the funeral expenses. The types of life insurance policies that parents may purchase to make their children beneficiaries may include much larger sums that will provide a financial buffer or nest egg.
Burial insurance is usually purchased for parents who are advancing in years and are typically retired on fixed incomes. However, while burial insurance is generally straightforward, there are some subtleties that you will need to be aware of when trying to purchase a policy.
Choosing the Right Type of Burial Insurance for Parents:
An affordable burial policy for parents comes in two basic varieties, the traditional policy, and the graded benefit policy. The differences between each are notable and must be considered when buying burial insurance.
Traditional: This policy provides 100% of the benefits when the policy is issued. So, if a parent should pass away the day after the policy has been granted, the full benefits will be covered. Of course, the company may not issue a traditional policy if there are health issues involved.
The Graded Benefit Policy: In this case, the benefits that are provided come in steps if there are health concerns. A typical graded benefit policy may have payouts like the following;
- First Year: 25%
- Second Year: 50%
- Third Year: 75%
- Fourth Year & Beyond: 100%
To avoid the graded benefit policy, it is best if the parent or parents being covered are still in good health. Otherwise, waiting until health problems appear in their parent means that the graded benefit policy may be the only choice.
For families trying to find affordable coverage, it starts by checking out the different policies and package levels for burial insurance. This is where it pays to shop around at different companies to find the right type of benefits to the premium ratio that best fits the budget while paying for all funeral expenses.
The bottom line…
Proper burial insurance for elderly parents means starting early and finding good, low-premium policies that provide at least $10,000 worth of benefits to cover all funeral expenses.
For families concerned about the expense of burying their parents, the sooner this issue is dealt with through adequate burial insurance coverage, the greater the peace of mind will be for both the parents and their children in knowing their funeral expenses will not be a financial burden.