I remember the first time my husband and I brought up the topic of life insurance with our older parents. We were in our thirties. They were in their 6o’s and 70’s. I wasn’t thinking about a big policy – just something simple and adequate like a burial insurance policy.
As our parents age it is inevitable that we begin to think about the possibility of them dying. Well, it’s not a possibility. It’s a fact that everyone will die.
So the question is – do your parents have a life insurance policy? If so, is there enough coverage to take care of the high cost of a funeral and the other costs that come along with death? If they don’t have a policy, then you know you need to get something in place.
Burial life insurance is a simple and affordable way to provide financial protection from funeral costs and burial expenses. Learn more about how to purchase a burial insurance policy for your parents.
The Basics of Buying Burial Life Insurance for Your Parents
Burial policies are simple life insurance policies that are intended to be in place to cover the costs to bury someone. This is a specific type of insurance policy that can be used for the specific purpose of taking care of those costs that are associated with the death of a parent.
Funeral costs have skyrocketed over the years, and continue to climb. This causes a lot of worry for most parents, and their children because they are usually the ones who have to cover the bill if nothing is in place.
Fortunately, burial insurance is a great way to set something aside to protection family from these large costs.
The basic features of burial insurance are:
- Permanent whole life insurance – coverage will last for the rest of your parents’ lives as long as they pay their premiums
- Premiums are fixed and never increase
- Policy amounts that range from $3,000 to $50,000
- No medical exam is necessary to qualify
- There are options for those with health issues
Overall, burial life insurance is an affordable way to secure a life insurance policy.
What If Your Parents Have Some Health Issues?
We know that there are aches and pains that often go along with the aging process. This is normal and most burial life insurance companies aren’t concerned about minor health concerns like this.
If your mom and dad have more serious health issues like high blood pressure, diabetes, or a history or cancer, heart attack or a stroke, then they can usually still qualify for a burial policy, but under different terms and with higher rates than someone who is healthy.
If this is the case with your parents, then don’t be discouraged to buy life insurance. There are still options available.
If your parent’s have some major health concerns, they may be able to qualify for a guaranteed life insurance policy. This type of policy will have a limit to the amount of coverage you can obtain and the rate is higher than a standard burial insurance policy. It also has a graded benefit, which means there is a two year waiting period before the full death benefit is available.
Do My Parents Have to Know About the Policy?
Every now and then I meet someone who wants to get additional life insurance for their parents or they want to specifically get a burial insurance policy to cover funeral costs to ensure that they aren’t left with a huge bill. But they don’t want their parents to know. Or they just ask if it is necessary to involve their parents.
The answer to this is yes. Your parents’ are the ones to be insured, so they have to read the application, answer all of the health questions, disclose any pertinent information that the insurance company asks for, and of course they must sign the life insurance application. With many companies, your parents may have to do a phone interview where the insurance company will verify the questions and answers on their application.
Who Is Going to Pay for the Policy?
In many cases, I see sons and daughters helping their senior parents find an affordable life insurance by scouring the internet and doing research on the best company for seniors. Sometimes a child just wants to help mom and dad get something in place.
Your mom or dad may have the budget and want to pay for the policy – they just trust your judgment to help them find the right coverage. In this case, your parents would be the payor and you (and your siblings or whoever else your parents choose) would be the beneficiary.
If your parents cannot afford to pay for their life insurance policy, then you can choose to pay the premiums for them. In this case, you would be the payor as well as the beneficiary (if your parents choose to name you as a beneficiary). You would set up payments via automatic draft of your checking account of pay for the premium by check upfront.
What is the Best Company for Burial Insurance for Your Parents?
There is no such thing as the “best company” because it depends on the individual that is getting life insurance. All life insurance companies have specific underwriting criteria and so rates vary from one company to another. I just caution you to be wary of some companies that market to seniors and the elderly through the tv because the rates are often way higher than you need to pay.
In order to get the best burial insurance rates for your mom or dad, you should work with an experienced independent agent, particularly one with is knowledgeable about seniors and the burial insurance market. An independent agent will have close relationships with multiple companies and they understand which company is best for many different situations.
Get started today by comparing burial insurance rates from several companies.