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What Type of Burial Insurance Policy is Best for Seniors Above 80

What Type of Burial Insurance Policy is Best for Seniors Above 80

It is a smart move to take a burial insurance policy if you are above 80 because you ensure your family doesn’t face a financial crisis as there is a quick payout. The advantage of policies like the final expense insurance Mutual of Omaha is that there is no mandatory medical exam required. Moreover, it is a whole-life policy with no stringent underwriting, making it easy for seniors to qualify despite having any health issues.

What Does Burial Insurance for Seniors Cover?

A burial insurance or final expense policy comes in handy as it covers all the funeral costs. You can get yourself covered for any amount ranging from $2,000 to $50,000, depending on the type of funeral you want. The premiums are affordable and range between $50 and $150 per month and depend on your age and gender and the specific coverage you wish to buy.

A Microscopic Look at the Small Print

Since these final expense insurance policies are meant for seniors, the policies are relatively straightforward. There’s a monthly premium to pay, and you get a death benefit. The death benefit is irrespective of the health issues you have. When a death occurs, the beneficiaries get a check for the insured amount, which is tax-free.

When you take final expense insurance with Mutual of Omaha or other such providers, the family is free to use the sum for the funeral expenses, with no questions asked. What’s more is you don’t have to give any breakup of the costs, and if you manage to save any money after fulfilling your dear departed wishes, you get to keep it.

The advantages of a final expense insurance policy:

  • The monthly premium payments remain fixed throughout the term and cannot be increased at any time, for any reason.
  • Similarly, the coverage is also fixed and not changeable for any reason.
  • The policy is in force as long as the insured lives.
  • You are eligible for borrowing loans against cash accruals based on the policy’s current value.

Burial insurance policies do not have any ambiguity. They do not have any hidden clauses that give the insurance company any chance to adjust the payment or end the coverage abruptly.

How Much Does a Final Expense Insurance Policy Cost?

Since many insurance companies offer burial insurance, the costs vary, depending on the insurance company you opt for to cover you. Also, the coverage amount determines the insurance policy cost or the premium outgo every month.

You can go for final expense insurance policies ranging from $5,000 to $10,000, though the amount can vary based on your specific requirement.  Here’s an example of a $10,000 policy:

  • The $10,000 policy you buy remains at the same value throughout the tenure and never diminishes in value. The coverage never goes down in value.
  • The premium amount is fixed. However, Term insurance may offer lower premium rates at the commencement of the policy. The problem with Term insurance is that the companies selling this may increase the cost after a period, like say, five years, and continues the increases every five years. You get to lose in this deal as the coverage is the same, though the premium keeps increasing.
  • In contrast, a whole life policy never expires. As long as you pay the premiums correctly, the policy is valid and payable when death occurs. Most Term insurance companies have set the limit at either 80 or 90 years when the policy expires automatically.
  • Compared to a Term insurance policy, a final expense insurance policy has more benefits and is in the best interests of the insured.

It is advisable to choose an immediate coverage plan with no waiting period.  If you opt for the level benefit final expense insurance, there is no waiting as you are covered from the first day.

People may want to look at the Living Promise Plan that comes with a Nursing Home Confinement Rider. If confined to a nursing home for 90 consecutive days, the insured can accelerate up to 50 per cent of the death benefit. However,

People with terminal illnesses should go for a policy with the Terminal Illness Rider. You get up to 50% of the death benefit if you are diagnosed with a terminal illness with 12 months or less life expectancy. A point to note is that the accelerated amount is deducted from the death benefit amount.

Summing it Up

With funeral costs on the rise, one is never sure of what to expect in the future. Final expense insurance is a way out for families that can’t afford a decent funeral for a loved one.

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