Burial Insurance Plans
When many people think about life insurance, they think about term life coverage, which is one of the more popular options for younger adults. However, if you are a senior citizen, this might not be the best choice for you.
Many senior citizens find that burial insurance, which is also known as funeral insurance, is the best choice. Once you learn a little more about this option, you might just find that it’s the right type of life insurance for you, too.
What is Burial Insurance?
Burial insurance is a type of life insurance that generally has a smaller face value. Basically, this type of policy is designed to cover basic funeral expenses and other final costs.
For someone who wants to make sure that their loved ones are able to cover their funeral costs without a financial burden, a burial insurance policy is a great choice.
Why is Burial Insurance Ideal for Seniors?
Burial insurance is a good choice for anyone who is looking for an inexpensive policy, but it is a particularly appealing choice for senior citizens. These are a few reasons why:
- Medical exams are not required. For seniors who may have some health issues, this is a good thing. Some insurance companies do require seniors to answer a few health-related questions, but in general, they are not too strict. They are generally looking for major health issues, like heart attacks or strokes. Mild to moderate health issues, which plague many senior citizens, often are not a big deal.
- Many term and whole life insurance companies stop offering coverage to senior citizens. However, burial insurance for seniors is often available for those over 70 or 75. For seniors who have outlived their term life policies or who have simply put off buying coverage, this can be a positive thing.
- Since the face value is not very high on these policies, coverage is often quite affordable. For a senior citizen who is on a fixed income, a policy can still be affordable.
- The application process for a burial policy is often quite easy. It’s a lot less stressful than signing up for some other types of policies.
- There are guaranteed acceptance policies out there, although they do have some stipulations. Some seniors worry that they will never be able to get coverage, and some life insurance companies do make it difficult because of strict underwriting. However, with guaranteed acceptance policies, all seniors can get the insurance that they need.
The Different Types of Burial Insurance
Basically, there are two main types of burial insurance for you to look into. The first option is simplified issue burial insurance. For one of these policies, you may have to answer some health-related questions.
This is not something to panic about. Many seniors worry about answering these questions, but for your average burial insurance policy, insurance companies are not too concerned about basic stuff. Instead, they are looking for more serious issues.
If you qualify for a simplified issue policy, this is the policy that you are going to want. This is because your policy will be in full effect from day one, so if something tragic happens and you pass away soon after getting your policy, your beneficiary will get the full coverage amount when you die.
With guaranteed acceptance coverage, this is usually not the case. However, these policies are a good option for people who have health issues and who still want coverage.
The only thing that you have to worry about is the fact that your policy will not be in full effect right away.
If you pass away during the first year that you are covered, your beneficiary may only get the amount that has been paid in to the insurance company in the form of premium payments, or the beneficiary might get a percentage of the face value.
Different companies have different schedules regarding this, so it’s smart to shop around.
Are you thinking about buying a burial insurance policy? If you’d like to learn more or would like to start shopping for a policy that is a good fit for you or your senior parent, check out burialinsuranceplans.com.
Category: Insurance
