Seniors Burial and Final Expense Insurance – What is it?
January 14th, 2011 | 
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Why Consider Burial (Final Expense) Insurance?
Nobody likes to think about the end of life. And yet, many seniors, and their families, are choosing to plan for the end of life. They know that funerals are expensive, and that funeral home usually need to be paid right away. They also know that this sad time will mean losing time from work, settling debts, cleaning out a home, and many other things that will require money.
In a perfect world, people would save for this time. But old age, when many people live on fixed incomes, is not a good time to do this. So to relieve everybody of worry, many people choose to purchase a policy that will provide a cash payment so their will be money when it is needed.
What is a Burial Policy?
These are simply small face value whole life insurance polices. They have been developed so that they are easy for older people to apply for. The cash value of these policies will rang from $2,500 – $25,000. Many people choose to purchase about $8,000 to $10,000 worth of coverage.
The premiums will depend upon several factors. The age and general health of the applicant will be considered. Some rates will vary by location too. And of course, the rates will be higher for more coverage. So the important thing to balance is the amount of coverage that is desired with the price for that amount of coverage.
Simplified Issue
These applications ask few health questions. Most seniors should be accepted. Coverage should be immediate after the insurer accepts the policy. This is a good choice for most older people who do not have any serious health conditions. The lower premiums and immediate death benefit are important to consider.
Guaranteed Issue
For seniors with more serious health conditions, guaranteed issue policies may be a choice to consider. I see a lot of tv ads that advertise “everybody is accepted” policies. But I would advise most seniors to consider simplified issue policies first because they should be cheaper and provide an immediate death benefit.
Instead of underwriting by asking health questions, a guaranteed issue policy will use a graded death benefit. This means that the policy will specify a period of time, 2 – 3 years, before the full benefit may be paid out. Before that, the policy may return premiums, and some may even pay interest on the premiums. But i order to get the full face amount of the policy, the insured person must survive the specified time period.
Before You Buy Burial Insurance…..
Make sure you understand what you a buying. How much coverage will you have, and is that benefit immediate or graded? It is fairly simple to compare premiums and plans with online quote forms.
Who Needs Final Expense Insurance?
If you are concerned about paying for funeral expenses, consider a burial policy. Many funeral homes will even accept the policy instead of cash. But it would be better to negotiate the price of the funeral without having a fixed price to concentrate on.
The policy can also provide cash for other expenses. If there are concerns about debt, medical bills, or travel, the cash can be used in any way that the beneficiaries need to use it. Any money that is left over will stay in the named beneficiaries bank account too.
Who Pays For It?
Sometimes the senior citizen who is insured will pay the monthly bill. Other times, the children or responsible parties will pay them as a way to plan for the inevitable. This can be a hard subject to bring up. But in my experience, many senor citizens are happy to know that their children have made plans for them.
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