Prepaid Life Insurance for Seniors [Save for Funeral Expenses]

Life insurance is a term that defines a contract between the insurance company and the insurers that serve as a death benefit to the dependants of the insured person in case of his untimely death.

There is a given amount that we have to pay as a premium for these policies for a certain period of time.

While there are various types of life insurance, here we will discuss prepaid life insurance for seniors.

Seniors here refer to those people who have crossed the age of 60, in most cases, and having the best life insurance is quite important to ease the financial burden from the family.

In the case of seniors the prepaid life insurance is mostly bought with the purpose of covering the funeral and after rites of the person or to pay off the debts (if any) after the death of the insured person.

prepaid life insurance for seniors

The elderly people make an informed choice about the way their funeral should be conducted by purchasing prepaid plans well ahead of their time.

Usually, the policy that is referred to as burial insurance policy or, final expense insurance is often not based on the health condition of the client as their premium is paid well in advance, so they do not require any medical examination of the person.

People, at a later age, purchase these policies so that after they leave the world, their families can pay for their final expense or any other expenses incurred due to their poor health in the last days.

Why Should You Consider Prepaid Life Insurance for Seniors?

why consider prepaid life insurance

If you are a senior and plan to invest your money in an insurance policy that can help your family even after your demise then you can consider buying a prepaid plan.

In some cases, the seniors realize that they have been denied traditional insurance coverage, so, they plan to buy prepaid insurance. These plans work best for very old and unwell people.

As they are not able to attain any other insurance, a prepaid policy can help them in reducing their worries about the monetary responsibilities of their family after their death.

This policy also works ideally for those who do not have a good amount of savings.

They can use this plan to enable their families to afford their final expenses. Mostly these policies do not require a high amount of premium. A little amount paid per month can work as a premium.

How Does It Work?

how it works

In a prepaid policy, the payments have to be made by the policyholder much in advance. The company that issues this policy decides on the period in which the pre-payment can be made.

It can be anything from one year to a number of years depending on the company rules and regulations.

Having already secured the payment from their client, the company pays back the money to the clients’ family or dependants (as nominated) after the death of the client so that they can use the money for meeting his last expenses.

It can be anything from his burial expenses to the medical bills or any debt in the name of the client.

Is It Possible to Return the Prepaid Policy?

It is not like whole life insurance, but like a term life insurance policy, the prepaid policy also comes with an expiry period that means if the policyholder survives the term of the policy as mentioned in the documents, it gets expired.

Though the prepaid policies are refundable, as the cause of prepaid insurance for seniors is different in most cases, they can consider renewing the policy instead of considering the return of life insurance.

The company agents will be able to guide them through the process of renewal.

Advantages of Prepaid Funeral Plans for Seniors

what are the benefits

A prepaid insurance policy is different than any other life insurance policy in a way that is meant to carry out your end-of-life expenses.

However, the benefits can be correlated in many cases. One prime advantage is that the policyholder knows that it will financially enable his dependants to meet his burial and other final expenses even after his death.

This feeling makes him spend his last few years in complete dignity and peace. He doesn’t consider himself as a burden on the family until his last breath.

One prime advantage is that the policyholder knows that it will financially enable his dependants to meet his burial and other final expenses even after his death.

This feeling makes him spend his last few years in complete dignity and peace. He doesn’t consider himself as a burden on the family until his last breath.

Secondly on the part of the family also, being financially equipped to deal with the expenses of the funeral of their loved one, they take full care to perform the last rites as per the desire of the policyholder.

For seniors, these policies are a good option to relieve their financial responsibilities and live a peaceful life with the people at a time when everything that matters to them is their family.

Linda Chavez

I'm a burial & senior life insurance expert, independent agent, Founder & CEO of Seniors Life Insurance Finder. I have been working in this sector since 2004 and established my own company in 2014. I have a team of seven members, and we are trying hard to share the knowledge we've gathered. We know how difficult often it is to find an affordable policy. Hence, we are doing our best to help you.