Planning for the future is something that many people do by doing several things such as saving for their retirement. Unfortunately, during the planning process, many people never include burial insurance for seniors.
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Nobody ever likes to think about the day that he or she will no longer be alive, but it is still important to give serious thought to what could happen to your family should the unexpected happen.
Affordable funeral insurance for the elderly is a great way to cater to funeral expenses, and it is not very expensive to obtain. While getting burial coverage can be a huge relief to all involved, lack of coverage can turn your passing on to a significant burden for your family.
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What is Burial Insurance?
It is the type of insurance coverage that caters to funeral expenses. When it comes to raising funds to cover funeral expenses, there are several options available including trying to save money for when the time comes and pre-purchase of funeral plans.
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However, the other options for raising funds to cater for funeral expenses can be a burden for some families when a person passes on, and he or she did not have burial insurance.
The initial cost associated with funeral insurance for seniors is minimal as compared to leaving the financial burden to the family when you pass on. For many people, a burial policy is the best and least expensive way to prepare for an unexpected eventuality.
How Does Burial Insurance for Seniors Help Families?
Such coverage can play an important role when it comes to catering for funeral expenses. Funerals typically have several important costs all rolled into one, and this is why many people have problems with paying for the unexpected death of a loved one.
Some of the aspects involved in a funeral service include:
- Casket
- Funeral Plot
- Floral Arrangements
- Fees for Embalming
- Services and other expenses
If you take into consideration all that goes into a proper burial, it is hardly surprising that it costs so much money. The total cost of the funeral will have to actually take into account all other expenses such as the gathering of friends and family.
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It is not hard to find instances where the travel and accommodation costs for family and friends that will be attending the funeral fall on the bereaved family. Burial insurance can help reduce such a burden on the bereaved family by feeding for such expenses.
How Much Does Burial Insurance Cost?
The cost of burial insurance for seniors depends on several different factors including the age of the person buying the coverage, the type of policy chosen, and the benefit amount. If you are researching low-cost burial insurance options to buy, here are some important considerations:
Type of Policy
Burial insurance policies are of 2 main types:
- Level benefits
- Graded benefits
In the level benefits policy, the full amount of the death benefit on the policy is usually paid out if the insured passes away at any point after the policy has been issued.
Graded benefits differ from level benefits since they only pay a portion of the death benefit in case the insured dies within a particular time after the policy has been issued. Graded benefits also have a 10 percent interest added to premiums.
The Choice of Plan is Critical
The higher the overall benefits are, the higher the premiums will be. A burial insurance plan taken out by a person in their early fifties will typically cost a few dollars each month, while a person that signs up in their 80s can expect to pay a lot more in premiums. It is important to weigh all the benefits in relation to the cost of premiums to find the most suitable plan for your needs.
Other Factors
When it comes to determining how much policy costs, other factors will come into play. If you currently have some other form of coverage, you could choose to cut back on the benefits of those policies and pay less for premiums. You can even decide to supplement burial insurance with other types of insurance coverage to help you save more money in the long run.
How to Choose The Best Burial Insurance?
In order to choose the cheapest burial insurance policy, it is important to evaluate your needs closely and ensure that the overall benefit amount will be sufficient to cater to all the funeral expenses that your loved ones are likely to incur in case of your demise.
How Much Coverage is Enough?
$10,000 to $15,000 in benefits should be sufficient to cover general funeral costs for most people.
However, there might be special circumstances that require additional money, or the person might have other types of coverage, which translates to fewer benefits.
It is important to evaluate the benefit amounts provided to ensure that you have enough to cater to all funeral expenses before you start shopping for a policy.
Is the Premium Age-Dependent?
Age is definitely a factor. The younger you are, the cheaper the burial insurance will be and the older you are, the more expensive it will be. People typically qualify for burial coverage once they are past 70 years of age and stay qualified into their 90s. The lower your age is when you start shopping for coverage, the less you are likely to pay regarding coverage.
Health Condition is Important
Your health is another important consideration. For those with health problems, you can opt for a funeral cover that asks very few, if any questions regarding your health, but those tend to cost more. Your health is something important to take into account when shopping for a burial insurance policy.
You can consider looking into final expense insurance since it does not expire and is most often a type of permanent life insurance. However, final expense insurance costs more per unit of coverage than term life insurance that runs for a specific amount of time before expiring.
Permanent insurance remains in place as long as you pay the premiums.
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If you wish to find the best funeral insurance for seniors, you will have to do some research and planning. However, the results are well worth it in the end once you get the right plan to cover the unexpected. Click here to request free quotes online.
For families with looming expenses or tight budgets, it can be financially devastating to pay for funeral expenses. Thankfully, burial insurance for seniors can help ease some of the burdens by ensuring that funeral expenses are covered to ensure that your family has an easier in the case of your untimely death.