Best Burial Insurance For Seniors In 2022
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It is never too soon to start planning for your familys future. It may not be pleasant to think about what will happen after you pass away, but its important. While larger term or whole life insurance policies can help ensure that your loved ones are taken care of once youre gone, you may not need an expensive policy with high death benefits. Instead, you may just want enough to cover your final expenses. In this case, you can opt for a burial insurance policy. No two burial policies or providers are exactly alike. So, in todays guide, well take a closer look at the best burial insurance for seniors in 2022!
Burial Insurance For Seniors Over : Best Funeral Plan
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The older you get, the less likely youll have a partner or surviving family member. Almost half of all seniors in the U.S. live alone or with friends rather than with their spouses or children. Because of this, its essential to have your end-of-life affairs planned and taken care of now rather than later.
Burial policy for seniors over 70 is critical to your estate planning. It can help leave you confident that it will fulfill your final wishes even after passing.
When youre over 70 years old, the cost of a funeral can become quite expensive. Getting the best burial insurance earlier is essential to lessen the burden of funeral costs. If you are age rangeover 70 years of maximum and get buried insurance, it will help pay for your end-of-life expenses when you pass away.
You may also want to look into senior funeral plans that provide additional perks like a guaranteed pre-paid funeral or help with burial costs. This article overviews some of the best senior life insurance for seniors over 70 and other ways to save on final expenses later in life.
Permanent Life Insurance With Death Benefit Rider:
Whole life is an investment-based policy that offers guaranteed cash value growth and death benefits when you die however, there are limitations to how much money can be withdrawn from these policies before they mature at age 100. The Accidental Death Benefit Rider pays additional benefits to your beneficiaries if you die while traveling by plane, bus, or train.
So it might not be a good idea if you need money for early retirement. However, this option could be a good fit if you want guaranteed acceptance planscoverage with a end of life benefit rider.
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How We Chose The Best Companies For Burial Insurance
Our analysis covered the companys reputation and portfolio of offerings and considered policy terms, monthly premium costs, benefit amount, and customization options before selecting the four category leaders.
Finally, we looked at how straightforward it is to obtain a quote and whether a physical medical exam is a requirement. Because financial stability is essential, we also reviewed data from AM Best before deciding on our top choices for burial insurance companies.
The Types Of Burial Insurance
Permanent Life
Permanent life, or whole life, is life insurance that you are unlikely to outlive. These policies typically mature when you turn 100 or 121. In the unlikely case that you do live past that, the death benefit should be paid directly to you, the policyholder, though you should verify this with the company.
With the most basic form of permanent life insurance, you need to answer some health questions, which may be referred to as a simplified underwriting process. You can be disqualified if you are in bad health, but the strictness of this qualification varies by company. Some permanent life policies require a health exam, but we have not included these policies on our list.
All of the permanent life insurance policies we have included on our list are available to those between ages 50-75, and many are also available to younger or older applicants. However, some permanent life insurance excludes seniors. Many permanent life policies gain cash value over time. Most do not have a waiting period for benefits.
Guaranteed Acceptance
Guaranteed Acceptance plans accommodate those who otherwise do not qualify for life insurance. Premiums tend to be higher for Guaranteed Life than for other forms of life insurance, and most of these policies have a 2-year waiting period for full death benefits. Many do not accrue cash value, but some do.
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What Is A Graded Death Benefit
If your policy has a graded death benefit, it means that if you die of natural causes during the first two or three years, your beneficiaries will not receive the full death benefit amount. Instead, the premiums you paid will be returned to them, usually with an additional percentage, such as 10%, refunded. However, if you die as the result of an accident at any time, your beneficiaries receive the full death benefit amount.
Graded benefits are how life insurance companies can provide coverage to people with severe health problems who would ordinarily be rejected for life insurance. With any policy you apply for, its important to research whether there is a graded benefit period and how long it is. Some policies will limit the period to two years while with others it lasts for three. Also consider what percentage is returned on top of your premiums if you die naturally during the graded benefit period. Some companies offer 10%, while others offer less.
How To Pick The Best Burial Insurance For Seniors
Choosing the right policy comes down to a few simple concepts. Most people need to consider the price, coverage amount, and company ratings. As noted above, the price can vary from one senior to the next.
To get the most accurate price, youll need to figure out how much coverage to buy. The median cost of funerals is $7,848 and rising, according to the National Funeral Directors Association.
The cost of your funeral can also change depending on the services youd like and where you live. Its safe to say that $10,000 or more would cover the majority of costs associated with a basic funeral.
If you have specific burial plans in mind and know that theyll be more expensive, you should invest in a policy that can cover those expenses. Its helpful to research how much insurance coverage you will need before you commit to a policy.
Otherwise, youll want to invest in a burial insurance company with good ratings. You can use reputable organizations such as A.M. Best and the National Association of Insurance Commissioners to get reliable information on a potential company.
For example, Mutual of Omaha has an A+ A.M. Best rating while Transamerica has an A rating. These ratings indicate that both companies are financially stable although Mutual of Omaha is superior.
Mutual of Omaha has an NAIC Complaint Index of 0.86 compared to 1.42 for Transamerica. This rating suggests that Transamerica fields more complaints than Mutual of Omaha.
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Who Can Get A Funeral Insurance Policy
Coverage is typically available for those between the ages of 50 and 85. One of the benefits of funeral insurance is that it doesn’t require a medical exam to qualify. Depending on the type of policy you pursue, even those without health insurance or who have a pre-existing condition can usually obtain a policy.
Guaranteed Acceptance For Seniors Over 70
A guaranteed issue policy is a whole life insurance plan with no health or lifestyle questions. Regardless of your past health issues, youre still approved.
All guaranteed issue life insurance policies always have a 2-3 year waiting period.
Any non-accidental death during the waiting period will only result in a refund of your premiums plus a small amount of interest.
In addition to the waiting period, policies without health questions are much more expensive.
A life insurance company that knows nothing about your health takes on substantial risk. As with all forms of insurance, a higher risk translates to a higher price.
You dont want to buy a guaranteed issue policy if youre in good health. Only people who have dire illnesses should opt for this type of policy.
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How To Get Funeral Insurance For Seniors With No Waiting Period
Believe it or not, dozens of final expense insurance companies offer coverage with no waiting period.
The most important thing to understand is that you must qualify for immediate coverage.
You must apply with a company that requires you to answer health questions. You wont have to take an exam, but you must answer health questions.
If they approve you, your policy will cover you the day you make your first payment.
Please understand that no health questions life insurance with no waiting period isnt real. No such policy exists.
All no-health-questions final expense policies have a mandatory waiting period of two to three years.
For example, AIGs guaranteed issue coverage has a waiting period.
Heres the good news. Most people, despite past health conditions, can qualify for immediate coverage.
Dont mistakenly assume that you will have a waiting period due to your past ailments. That is simply not true for most applicants.
If you want a plan that covers you right away, call us at 1-800-644-2926. We have over 15 different insurance companies that we partner with.
If immediate coverage is possible for you, well find it.
The Aarp Life Insurance Program From New York Life
Best for Paid-Up Premiums
AARP has served American seniors 55 and older since 1958. Its an organization born from the idea that aging is challenging, but its also a privilege. AARP has a long history of fighting to make aging a more positive experience by lobbying for senior-friendly legislation and by publishing helpful articles for seniors.
AARP frequently partners with other businesses to bring specific services to its members. One such partnership is with New York Life, a company thats been offering insurance for over 170 years. New York Life maintains its ability to meet consumer needs in part because it isnt beholden to meet aggressive shareholder expectations. New York Life has a A++ rating for financial stability from the insurance rating agency, A.M. Best.
The AARP Life Insurance Program from New York Life has a unique feature called paid-up premiums on both of its life insurance policies. Paid-up premiums means that once the policyholder reaches age 95, he or she no longer pays premiums but still receives full coverage. If you expect a longer than average lifetime, this generous policy could lower your costs while offering peace of mind as you reach what could be your most expensive years for healthcare and other needs.
The AARP Life Insurance Program from New York Life Product Overview
Plan Typeexcept New Jersey & Washingtonexcept New Jersey & Washington
Positive traits these policies have in common:
*Varies by state
Pros and Cons of Permanent Life
Pros:
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What Is Burial Insurance
Burial insurance, also known as funeral or final expense insurance, is a term for a low-death-benefit life insurance policy designed to provide the funds to pay for funerals and associated expenses related to your death. Burial insurance is best for seniors who want a small insurance policy that will provide their beneficiaries with the essential funds they need to pay for these final expenses. While the premium is generally lower than that of a larger term or whole life insurance policy, it is important to note that you will need to pay a relatively high premium for a low death benefit.
Quick Tip: Visit our guide to burial insurance to learn more about final expense insurance, including the costs and whom its best for.
For example, lets say you have a burial insurance policy that costs $50 per month and pays out a death benefit of $25,000. Alternatively, you could get a comprehensive whole life insurance policy for $100 per month that pays a death benefit of $100,000. While the larger policy requires you to pay twice as much per month, it offers four times the value in death benefits.
What Is The Contestability Period
The contestability period, which is sometimes included in a burial insurance plan, is a provision in a life insurance policy that allows the insurer a set period of time to examine and deny a benefits claim. In most cases, the window is the first one or two years a policy is in effect. Usually, the provider investigates whether or not the covered individual was honest in their answers to the companys health questions. If a claim is denied, the insurer refunds all of the premiums the deceased paid.
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Will You Need To Have A Health Exam Or Answer Health Questions
Insurers often offer two types of final expense plans simplified issue and guaranteed issue. Neither will require you to go through a health exam , but simplified issue life insurance will require you to answer several health-related questions.
Guaranteed issue life insurance, as the name implies, ensures automatic acceptance. It cuts out a step in the process but also costs more as a result and may require a waiting period before the full death benefit is available.
Term Life Insurance With Burial Rider:
This type of policy provides life insurance coverage but also covers funeral costs and the cost of a cemetery plot and all the premiums. Suppose you want more flexibility with how much coverage amount you want.
In that case, term life insurance with a burial rider is a good option because it has flexible premium payments based on age and other factors.
However, if you dont need the burial rider feature, you may be able to find better rates by purchasing term insurance without this added benefit.
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How To Get Final Expense Insurance With No Waiting Period
Many companies offer burial insurance for seniors over 60 with no waiting period.
No waiting period simply means that your beneficiary can receive the full benefit amount as soon as the policy is in place. Policies with no waiting period almost always require you to submit to a health exam before youre approved.
A medical exam allows the insurance company to assess your risk level.
If you dont have any serious health conditions such as cancer or HIV/AIDS and pass the medical exam, your approval for a policy with no waiting period is more likely. If you dont qualify for a policy with no waiting period outright, you still may be able to pay a higher premium to get that waiting period reduced.
Aarp/new York Life: Best For Low Consumer Complaints
Our take: AARP received fewer than the expected number of complaints to state regulators for a company of its size. Open to AARP members as part of a partnership with New York Life, this policy is a type of group life insurance. Youre guaranteed to be accepted as long as youre an AARP member who meets the age requirements, and coverage lasts your entire life, though youll stop paying monthly premiums by age 95. AARP also allows members spouses who are 45 to 80 to apply for a policy.
Policy name: Guaranteed Acceptance Life Insurance.
Eligibility age range: 50 to 80.
Coverage amount: $2,500 to $25,000.
Availability: All states.
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Are There Multiple Options For Coverage
If you are looking for an insurance policy to cover funeral costs, its worth noting burial insurance is just one type of life insurance and there are other options:
Term life insurance
If you have a specific financial obligation that has an endpoint, such as a mortgage, term life insurance is a good option. You can choose the level of coverage you need, and the length of the term, such as 10 or 25 years.
Whole life insurance
As the name suggests, these policies provide lifelong coverage and pay a death benefit to your beneficiaries, regardless of when you die. The policy increases in cash value at a predictable rate, but the premiums remain the same. Whole life insurance is usually considerably more expensive than term life insurance.
Universal life insurance
This is another option for lifelong coverage. Because not all universal life policies increase in value, they may be less expensive than whole life insurance.
What Does Life Insurance For Seniors Exclude
As with any life insurance policy, there are a few provisions that seniors should be aware of. First, some insurance policies do not cover death from suicide. Specific causes of death may not be covered, as private plane crashes. Finally, your beneficiaries wont get the life insurance proceeds if you dont tell the truth on your insurance form.
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Should You Get Burial Insurance Coverage
As you move through the changes in your life, it is important that you ensure your overall financial plan is in-tact. This will oftentimes include a plan for covering final expenses so that loved ones dont have to invade savings and/or sell off other assets in order to come up with the needed funds.
If you dont have life insurance in place or even if you do have life insurance, but you do not have an adequate amount of coverage then adding one of the best burial insurance policies can be an affordable way to supplement that protection.
In many instances, burial insurance policies are not difficult to qualify for, as they often do not require that you undergo a medical exam as a part of the underwriting process. This means no blood test to go through and no lengthy health questionnaire. Therefore, coverage can often be obtained easily and quickly for the added protection that you need.