Types Of Burial Insurance Policies
Not all burial insurance policies work the same when it comes to paying out benefits. So, it is important that you have a good understanding of just how the payout is structured. That way, your policys beneficiary can know what to expect if and when they need to file a life insurance claim.
Some of the best burial insurance policies will pay out 100% of the stated amount of the death benefit, regardless of how long the policy has been owned when the insured passes away. In other cases, though, the policy may have graded benefits.
Here are the two types of policies you should know.
Level Benefit Policy
The first is what we call a level benefit. This just means that you will be paid your full death benefit regardless of when you die. There is no waiting period.
Not everyone will qualify for a level benefit policy. This will depend on your health, age, and several other factors.
Graded Benefit Policy
Insurance companies often protect themselves, however, by offering funeral insurance plans with a graded benefit. This means that the insured has a waiting period before being eligible to receive the full policy amount in benefits. Typically this waiting period is 24 months but will differ between companies.
Here, if the insured passes away within the first few years of owning the burial insurance policy, the beneficiary will only receive a certain percentage of the total stated death benefit.
You Can Choose a Term or Permanent Policy
Can You Get Final Expense Insurance Without A Waiting Period
Well, a lot of insurance companies do offer burial insurance for seniors who are over 60 years old without any kind of waiting period. No waiting period means that your beneficiary can get access to the full benefit amount as soon as the policy is completed.
The thing with policies is that the ones that do not have any kind of waiting period usually need you to complete some sort of health assessment or health exam before you are approved.
This is because the completion of a medical exam lets the insurance company evaluate the level of risk that you are at.
So, if you are not someone who has serious health conditions such as cancer, or such as HIV or AIDS, and if you subsequently end up passing the medical exam then ultimately your approval for a policy with no waiting period is much more probable.
Heres the thing, if you do not end up qualifying for a policy that has no waiting period outright, then you can still have a chance of paying a much higher premium, but as a result of this the waiting period will be reduced.
What Is Your Next Step
Most compelling evidence, we have had clients call us with this exact same problem on a daily! They were sold this policy and now here they are over 80 and no burial coverage.
But what do seniors over 80 do now? As a matter of fact, most likely you are going to outlive this policy.
Think about that! If you have AARP now, give us a call immediately.
We will compare funeral insurance quotes with same-day instant approval carriers and save you a ton of $$$!
Burial policies for Seniors
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Aarp: Guaranteed Acceptance Life Insurance
Best Premium Payment Policy
AARP provides services to help aging Americans remain empowered and independent. Operating since 1958, the group makes life more enjoyable, and the world more accessible, for anyone over the age of 55. So while AARP isnt an insurance company itself, it has partnered with New York Life to provide a simple burial insurance option for members and their spouses. New York Life Insurance Company is the third-largest life insurance company in the United States and has been providing services since 1845.
This policy also offers a unique Paid-Up feature not found in many other burial insurance policies. With this feature, your premium payments end when you turn 95. But the coverage continues throughout the rest of your life, regardless of how long you live. Since health care costs tend to rise as we age, this is an appealing feature for saving some money on premiums later in life.
|Premiums End at Age 95, but Coverage Continues|
Americo: Eagle Premier Series
Best for Quick Coverage
Founded in 1946, Americo has been providing financial services and insurance products for over 70 years. It offers a strong portfolio of life insurance policies in particular, including several whole life insurance policies.
The quick application process is similar to that of other companies. But in addition to simplifying the process, Americo also has one of the quickest wait times between the time of approval and the time coverage begins. Once approved, theres no waiting period for the policy, so full coverage starts from day one. This can provide much needed reassurance for anyone who is worried about passing away within the first few years of purchasing the plan. Americo is one of the few companies that provides immediate coverage for people with COPD and other high-risk health conditions.
To qualify for this policy, you must be a nonsmoker between the ages of 50 85. If you do smoke, you must be between the ages of 50 80. While there is no medical exam required, there are some simple health questions on the application that will determine your eligibility. The quick-issue application process means that approved applicants get their coverage quickly usually within 48 hours of approval. Americo does not provide coverage to residents of New York.
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How Much Does Burial Insurance For Seniors Cost
The amount youll pay in premiums may be as low as $18 per month or as high as $286 per month depending on the insurance company you choose, your age, sex, coverage amount, and overall health. Your rate will be cheaper if youre in good health and can answer no to the health questions on the application. Some insurers may require a medical exam to qualify, but this isnt always the case. If youve had health issues in the past or are taking certain medications, you may be issued a modified or sub-standard plan and your rates will be higher because of your health.
Life Insurance For Seniors
Life insurance is an important financial product that individuals may consider purchasing at any stage in life. Because life insurance pays out upon the insured’s passing, there is a common misconception that seniors who do not already have a life insurance policy should not or cannot purchase life insurance. However, there are a number of life insurance products that work well for adults over 50 the most important consideration is what product will work best given your financial situation at your current stage of life.
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What Is Burial Insurance
Burial insurance is also referred to as final expense insurance, funeral insurance, cremation insurance, even burial policies for seniors. All these terms pertain to a whole life insurance policy designed for seniors or older people to cover funeral and final expenses.
Final expenses are various costs that arise after a family member dies.
Getting burial insurance is fairly easy. Insurance companies generally offer this kind of policy to people age 50 to 80 or even 85. They only need to answer a few health questions.
No health questions guaranteed acceptance or guaranteed issue policies are also available.
The face amount is relatively modest compared with traditional life insurance policies which make the premiums affordable to applicants. You can choose from $2,000 to $25,000 insurance coverage although some insurers will offer higher senior death benefits.
Burial insurance policies provide a cash benefit to the beneficiary when the insured dies. They can use this fund however they see fit.
The cash benefit can be used by the beneficiary to pay for outstanding medical bills, debts, funeral costs, and final expenses. If theres some leftover, folks can keep it.
Life Insurance For Seniors Over 60 With Diabetes
We have written several articles on life insurance with diabetes. Here is the good news for people with type 1 or type 2 diabetics. Since these plans are simplified issue people with diabetes can get day one coverage as long as there are no serious complications such as neuropathy and even then depending on the severity of that our agents can still help you get covered.
You can read more on life insurance with diabetes here:Burial Insurance for Diabetics 2022 GuideThis is why it is crucial to work with our agents and their advanced training because within 20 minutes they will know exactly what you qualify for.
One company to watch out for a NOT go with is New York Life associated with AARP. We also do NOT recommend John Hancock either.
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Best Burial Life Insurance Companies For Seniors
There are a lot of options when it comes to life insurance companies that sell burial policies. This is one of the reasons why itâs fairly easy to qualify itâs highly accessible.
However, you have better chances of getting a stellar policy with bigger companies.
For one, bigger companies tend to have better stability. This stability is important since youâre putting your familyâs financial future in that companyâs hands.
Heres our list of the TOP 15 companies that provide the best burial insurance policies.
The Ultimate Guide To Funeral Insurance For Seniors
Read What Our Clients Say About Us
Owning your own funeral and burial insurance is one of the most important steps you can take to secure your legacy. Its not a morbid thing, its just practical for anyone who wants to be in control of their final wishes.
You deserve the peace of mind that you have the resources and knowledge available to plan an affordable ceremony or cremation service that reflects who you were during life.
We know that sometimes it can be hard for seniors on fixed incomes who have limited assets to find quality coverage at rates they are able to afford. But were here every day all the time ready and available!
We proudly offer same-day approval without a medical exam so there is no waiting around worrying about what will happen when you pass away if you dont get approved.
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Why Do Seniors Over 60 Need Life Insurance
You have raised your family, and now your retirement is secure. That is a great accomplishment. However, you may have also purchased a term life insurance policy to replace income during critical years. Now you need to decide if you should buy a new life insurance policy. Is term or whole life insurance better for seniors if you decide to buy one?
Some seniors may think they dont need insurance now that they are retired. Unfortunately, this is not always the case. Many expenses, like raising kids, paying a mortgage, or paying college tuition, may come up.
If you dont have any debt and have enough money saved so you and your partner can live comfortably for a long time, and you have money saved to cover funeral expenses and other unexpected costs, then you may not need life insurance in your 60s or 70s. However, many older adults find that life insurance can provide an important safety net for their families if they need it.
Dont Shy Away From The Policies Requiring A Medical Exam
There are many policies on the marketplace that dont require you to get a medical exam or answer in-depth medical questions to get coverage. These policies are an excellent option for seniors who need a policy quickly or who wouldnt otherwise qualify for life insurance.
The downside is that these easy-apply policies are generally much more expensive than the others. This is because of liability. If you undergo a medical exam and get a clean bill of health from your doctor, the insurance provider will view you as someone more likely to continue paying that premium for an extended amount of time. Without that medical history and exam, the insurance provider has no way to gauge your health and charges a higher premium in case youre at high risk.
Have a Pre-Existing Condition? You May Still Qualify
Even if you have a pre-existing condition, you can still qualify for burial insurancein some cases even without a waiting period. Some common pre-existing conditions that dont disqualify you from burial insurance policies include:
Specific guidelines regarding preexisting conditions vary by provider, so be sure to call if you have any specific questions or concerns.
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Faqs About Funeral Life Insurance For Seniors
At the very least, everyone who is 45-85 can obtain a guaranteed acceptance policy. However, its important to note that all guaranteed issue policies have a two-year waiting period. If you die during the waiting period, the insurer only refunds your premiums plus interest. Seniors should opt to apply for coverage that has a health questionnaire. If approved, the policy will likely be cheaper and not have a waiting period. There are still options for people outside of 45-85, but youll have to medically qualify for the coverage.
Burial insurance is life insurance so the net result will be a quick cash payout to your beneficiary. The money from the payout allows them to cover the costs associated with burial, cremation, memorial service, and funeral home services, adding up to thousands of dollars.
When comparing a burial policy vs life insurance, its helpful to remember that burial insurance is a type of life insurance. To be more specific, burial insurance is a particular type of whole life policy with small coverage options and a fast claim payout.
All insurance companies have a minimum and maximum age for new applicants. Typically, the minimum age is around 45 or 50. Typically, 85 is the oldest most burial insurance companies will accept a new applicant. However, there are a few options for people between 86 and 90, but not many.
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Here is a helpful tip about life insurance policy loans.
Heres the thing
Aarp Life Insurance For Seniors Over 80
That burning question, What is the deal with burial insurance for seniors AARP?! You may have received many mailers from AARP Life Insurance no medical exam.
Perhaps you have seen their TV ads while watching your favorite program.
Getting final expense insurance quotes and comparing monthly premiums from AARP is actually a good idea. With that said, be careful, we want you to understand what you are really getting.
If you have compared rates for funeral insurance planning in the past, you may have looked into AARP burial insurance.
4 Facts about AARP!
- What does AARP offer? AARP offers a few different types of policies ~ Level, Simplified and Guaranteed Issue.
- Did you know? AARP requires monthly fees from you.
- AARP is a subsidiary. They are not a traditional life company within itself. It is actually New York Life Company.
- YOUR COVERAGE EXPIRES AT AGE 80! THIS IS NO GOOD! To explain, you are really being sold on the hype of no medical exam, few health questions, low premium payments, no waiting period if you qualify for level benefits, funeral expense policy, options for different life benefit plans.
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Graded Benefit Burial Insurance Policies
The next low cost burial insurance is the graded plan.
Graded burial insurance is used when certain pre-existing health conditions exist and are discovered during the health history assessment. Graded means these plans do not pay the full death benefit amount immediately upon approve
For example, if the amount of coverage was a $10,000 burial insurance policy for an average funeral that has a graded benefit, your familys payout would have a structured payout over two-year period as follows:
- If you pass away in Year 1 = 30% of the $10,000, or $3,000, would be paid to your beneficiary from the final expense policy.
- If you pass away in Year 2 = 70% of the $10,000, or $7,000, would be paid to your beneficiary.
- Year 3 = 100% of the $10,000 payout is paid to your beneficiary.
How much burial insurance is needed if you have a $10,000 funeral and qualify for a graded policy? Using the same math above, you would need a $33,000 policy to pay out the full cost of the funeral if you passed away within the first year of owning a graded burial insurance policy.
Or, you purchase the graded policy knowing that, unless its an accidental death, youre not likely to pass away until well after the 3rd policy year.
Different companies have different payout schedules, so its important to fully understand before making any purchase decisions.
What Can The Death Benefit Be Used For
Senior burial programs were designed as an affordable and flexible way for people to prepare for their funeral costs. There are no regulations on what the death benefit must be used for.
Youll want to make sure that you list a trustworthy recipient with the insurance company to carry out your final wishes. It is common that the beneficiary uses the death benefit for the funeral, burial/cremation, legal fees, medical bills, and any other expenses that come up.
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Aaa Life Insurance Company
With the AAA Life Insurance Company, anyone between the ages of 45 and 85 is guaranteed acceptance.
Aside from that, acceptance is made easy by the fact that you donât have to pass a medical exam and answer tons of medical questions.
The maximum coverage is $25,000. Though you can purchase a policy with a death benefit smaller than that.
Coverage is lifelong as long as you pay until age 100, at which point you no longer have to pay but the coverage is still in force.
One of the cons is that there is a two-year waiting period. Also, there is an annual $60 fee for non-members.
Members are eligible for discounts if they purchase bundles on multipolicy premiums.
In terms of how easy it is to apply, AAA Life does a pretty good job. You can get free sample quotes online.
For 75-year-old men and women, the prices are around $108 and $84, respectively.