As one age, it becomes practical that there is an end to life. It also becomes apparent that the end of life comes with costs that could be a burden to family and friends.
Most seniors turn to insurance covers to cater for their final funeral expenses. It is a good thing! It allows family members to grief.
So, what is funeral insurance for seniors?
It is a cover that will meet the expenses for the casket, or simply defray funeral or last respect costs. Some cover allows the bereaved to spend the money on burial plans alone. Others allow them to spend the money on any arising expense.
The Unique Thing about Funeral Insurance
Seniors with poor health can also get covered. Thanks to the guaranteed issue policies. They provide coverage to the elderly regardless of their state of health.
The Coverage Needed
The amount of coverage needed varies depending on the type of final sendoff they want. The elderly may choose to be cremated in an urn or buried in a casket. Those in need of other services like internet broadcasting must have more resources.
In such a case, the insurer must be prepared to pay more. Generally, the cost of the funeral the seniors plan to have will determine the type of coverage they get. It also determines how much they pay.
Policies Seniors Could Qualify For
The mistake most seniors make is to assume that the guaranteed choice policy is the only option they have. This is far from the truth. The elderly have the traditional or standard policy, the simplified issue policy, and the guaranteed issue policy. Each of these policies has different terms and costs.
1. The Standard Policy
The policy is for seniors who fall under a certain age bracket and who enjoy good health. The amount of premium they pay is always low.
2. The Simplified Issue
Seniors with a medical condition that makes it difficult for them to access the standard policy may opt for this option. It allows them to skip medical exams. It is the best option they have if they have a condition like diabetes.
3. Guaranteed Issue Policy
This option guarantees coverage even though it comes with a cost. The elderly diagnosed with a terminal illness like cancer can receive a guaranteed issue policy. This may happen when they do not qualify for the standard and simplified policy.
The Cost of Funeral Insurance for Seniors
How much a senior pays for a policy varies from one person to another. The most important factors are the type of policy and the service the senior would like to receive.
Also, the age and the risks the elderly are exposed to could be used to calculate how much they pay. The other factor that may be considered is gender. Men pay slightly higher because they are exposed to more risks.
Ways a Senior Can Get a Funeral Insurance Cover
Seniors can get a funeral cover from the insurance company through their agents. Alternatively, they could buy it from a broker.
Working with Brokers
These are individuals with extensive knowledge of burial insurance. Brokers will give you a variety of plans to choose from. They will advise you on the best option depending on the situation you are in.
Experienced brokers will be in a position to provide you with a free quote on request. Also, they will never push you to make a purchase. They will also help you access the info you need so that you can make an informed decision.
It entails buying a cover directly from an insurance company or their agent. All you need are the details of the policy and you will be good to go.
Typically, burial insurances for seniors have minimal underwriting. The insured need not go through the medical exam. So, those with serious health issues could still qualify for the coverage.
Once the senior has bought the coverage, they will be expected to pay the agreed premiums. In most of the cases, the policy may range from $2,000-50,000.
Choosing The Best Cover For Seniors
A good cover should ensure that the family of the departed senior is catered for. It should also meet the senior’s final expense wishes. Besides, it should ensure that the family is not weighed down by funeral expenses.
Here are tips that can help one select a good cover for seniors.
- List the final expense cost
- Look at your medical history
- Determine the amount of coverage needed
- Talk to a final expense agent
- Look at the medical history
- Calculate the coverage needed
The Right Age Range To Take It
For instance, the whole life insurance plan has no age limit. However, the policy is considered paid up when the senior reaches 100 years.
So, when should one start paying for the plan?
The earlier you start paying for a funeral plan the better. You stand to enjoy the best rates if you start early. The cover will last for the entire lifespan until you reach the age of 100.
Benefits of Funeral Insurance Policy
- The premium amount does not increase with age
- The insurer allows you to choose a person responsible for distributing the benefits
- You will not need to take an exam to receive the coverage
- The policy cannot be canceled due to poor health
- Individuals in poor health can have access to the policy
- In the event of an accident that results in death, additional benefits will be awarded.
- Tax-advantage- the beneficiaries are entitled to tax-free policy proceeds
- No medical exam is required
- You can access a loan if you have accumulated enough cash
- The premium rates cannot be increased
- Once the policy is issued, it cannot be canceled or altered due to changes in health status.
- It is fast and easy to apply for the cover
- Some of them come with an illness rider for seniors diagnosed with a terminal ailment
Things To Note
1. You don’t need to pay for the entire policy at once. You can arrange to make payments monthly or annually.
2. The final expense may cover several costs. It allows the loved ones to cater for burial costs and other needs. The benefits may cover probate bills, medical bills, legal fees, and any other expenses.
3. The insured can extend their choices to several service providers. It means that they are not tied down to one specific provider. They are not restricted to a particular plan or a certain geographical location. It leaves the seniors options open and allows them a lot of freedom in choosing policies.
4. It is possible to borrow against the value of the final expense policy. So the policy allows you to kill two birds with one stone. It secures your burial expenses and gives you access to a line of credit.
5. Funeral life insurance intends to lessen the financial burden. It reduces grieving pain when you die. It helps the insured and the beneficiaries plan for the final expense. With a good plan in place, it frees the beneficiaries from funeral expenses. What’s more, it allows them to grief freely and celebrates any legacy you may have left behind.
Final Thought- What You Must Do
Come Up with Your Funeral Wishes
Before seeking a funeral insurance cover, it is prudent that you come up with your funeral wish list. It allows the funeral home to include everything you want in the amount that they give to your loved ones. It also helps to determine the cost of your cover.
Get Updated with Funeral Rights
In many countries, you will come across rules detailing how a funeral home should operate. It includes how they should treat their clients. Knowing some of these aspects may be critical in helping you determine what you want to be done.
It reduces instances where most of your money will be spent on items that do not add value to your final send-off. You can find and access plenty of funeral guides online. They will keep you updated on what the funeral homes are required to do.
Research the Government Benefits Available
Some governments avail more funding to a senior who buys a final expense cover. It could be a one-time benefit to the surviving children or spouse.
So, buying a cover that comes with these benefits could be a plus to your family.
Keep Your Family in the Loop
There are many cases where the family may have no idea about the cover bought. In some cases, they may have information about the cover but not the details. So, they assume that insurance will take care of everything.
Unfortunately, this may not be the case. So when the inevitable happens, they wait for the insurers to pay for all the expenses.
When it does not happen, you end up with a substandard final send-off. Ensure you get your family posted of the details like transportation and funeral ceremony in advance.