Burial Insurance
Burial insurance ( Final Expense) plans are small whole life insurance policies that will last the insured’s lifetime.
These plans take care of Burial /Final Expense costs. Costs can include burial or cremation fees, small debts, travel expenses for relatives , wake expenses etc.
I work with several dedicated burial insurance plan companies. These companies offer products that allow me to place almost anyone , regardless of health, into a plan.
Some of the most popular carriers are:
Assurity Life
Americo
American Memorial
Forethought Life
Foresters Life
Gerber LIfe – Guaranteed Issue Plans (see below)
Monumental Life
Mutual of Omaha ( United of Omaha) – Some of the best rates.
Royal Neighbors of America
United Home Life
Vantis Life
To name just a few!
Burial Insurance Plans generally have these guidelines:
Age restrictions are between 45-80. I have carriers that will go to 85 or higher. Some carriers will only offer a plan starting at age 50.
Benefits from $1,000 t0 $50,000 – Some carriers will go higher.
Simplified issue /No Exam Life Insurance You will answer some Yes and No questions and the policy you qualify for will be based on these answers and perhaps, a Pharmacy and/or Medical Information Base report.
Benefit Payouts
Immediate Benefit – If you qualify the entire face amount will be put in force from day one of acceptance.
Modified or Graded – If you have health issues and cannot qualify for the immediate benefit plan , they may offer you a modified or Graded Life insurance plan. The plans do not offer full face amount coverage until the 24th month, some carriers may make you wait up to 36 months. If you would like to run your own Guaranteed Issue Whole LIfe plans.
Payment options
Most people do month to month. Some carriers offer Annual , Entire single life time pay and 3-10 year pay plans. The Entire Single Pay and 3-10 year pay plans allow the insured to make payments up to a chosen year and then the policy will be in force with no further payments due.
Is underwriting required?
How you answer these questions determines whether you’re eligible for a plan and which type you’re eligible for: Immediate Benefit or Graded Benefit. Carriers generally require a phone interview. And , as a reminder, these plans are all No Medical Exam Life insurance plans!
Some carriers will check your medical records and prescription drug use to help them determine your eligibility.
Are Guaranteed Issue Life Insurance plans the same as Burial Insurance Plans?
Guaranteed Issue Life Insurance – For those in the poorest heath (Also known as High Risk Life Insurance) , a carrier may also offer these types of plans. These plans have the following general features:
1. The maximum face amount you can be upto $25,000. If you need more coverage we can “Stack” policies.
2. Same general age restrictions as Burial Insurance plans, generally start at 45-80.
2. They are all Graded Life plans , most with a 24 month waiting period before the full face amount is in force. If the insured dies before the full face amount is in force, carriers will pay back premiums paid, plus some interest.My main carrier Guaranteed issue carrier, Gerber Life, will pay , in addition to the return of premiums, 10% on the money paid.
3. If death is by accident, some carriers will pay the full face amount , regardless of the in force policy graded period .
3. No Medical questions and no health checks.
These plans can be expensive and out of reach for those with limited income. These plans are also considered burial insurance plans but carriers tend to call them Guaranteed Issue Plans.
What questions will they ask in order for me to qualify for a plan?
Each carrier is different. However here are some common questions. They generally have two sections: Section 1 would have what we call Knock Out questions; if you have any YES answers then you would only be eligible for a Guaranteed Issue Life Insurance plan. The carrier you are applying to may or may not have a plan available.
Section 1 , general questions:
1. Have you ever been diagnosed or treated by a member of the medical profession as having a terminal
illness, Acquired Immune Deficiency Syndrome (AIDS), AIDS Related Complex (ARC), or Human
Immunodeficiency Virus (HIV) infection?
2. Are you currently:
(a) Receiving hospice or home health care?
(b) Bedridden, confined to a hospital, nursing home, or other facility, or has confinement been
recommended by a member of the medical profession?
3. Have you ever been diagnosed or treated by a member of the medical profession as having Alzheimer’s
disease or dementia?
4. In the past 12 months have you been diagnosed or treated by a member of the medical profession for
internal cancer?
5. Have you been diagnosed with a terminal illness with less than 12 months to live?
Section 2 -If all answers in the following section are NO , most carriers would offer an Immedate Benefit Plan. A yes answer would probably get you a Graded life plan.
5. Have you been diagnosed or treated by a member of the medical profession as having:
(a) Diabetes before age 30, or suffered complications from diabetes such as neuropathy, retinopathy,
kidney or vascular problems
(b) Emphysema, chronic obstructive pulmonary disease or a lung disorder requiring oxygen
(c) Heart attack, coronary artery disease diagnosed before age 60.
(d) Heart valve disease requiring surgery
(e) Stroke, aneurysm or cardiomyopathy
(f) Kidney disease, liver disease or hepatitis C
(g) Multiple sclerosis or Parkinson’s disease
6. Within the past 5 years have you been hospitalized, diagnosed or treated by a member of the medical
profession as having:
(a) Cancer, leukemia, melanoma or any other malignancy (except basal cell skin cancer)
(b) Mental or nervous disorder
7. Within the past 2 years, have you been treated or counseled by a member of the medical profession for
alcoholism, alcohol abuse or any drug or substance abuse?
8. (a) Do you have existing life insurance policies or annuity contracts? (If “Yes”, complete and submit replacement form.)
(b) Will the insurance herein applied for replace any existing insurance with this company or any other
company?
Summary:
Make sure you work with an experienced broker, such as myself , who works with several of the best life insurance companies and can offer many different products. If you work with an agent who only offers 1 or 2 products you are not getting a clear picture of what is available on the burial insurance market place.
Burial Insurance or Funeral Insurance, is a complete life insurance coverage designed to cover the expenses of ones burial or funeral. Additionally, it is called Funeral Insurance, or Final Expense Insurance. These policies are typically between $5,000-$20,000 and often need no medical exam making them a less strenuous option to qualify for. These are generally created for the purpose of protecting ones family from the financial burden that a funeral can be and almost anyone can be eligible for these policies.
Losing someone you care about is a difficult and trying experience. Even though many who have dealt with the loss of a relative or friend expected to experience grieving and sadness, many usually do not be prepared to also need to contend with the high expenses associated with honoring the memories of a loved one. The expense of a funeral and its particular associated accommodations can cost thousands of dollars and certainly will place unnecessary stress and financial strain on those people who are coping with their loss.
Burial and final expense insurances are types of basic life insurance that tend to be more affordable and easier to obtain than traditional forms of whole or term life policies. Additionally, final expense insurance will cover those who find themselves beyond the age limits of a normal life insurance coverage, as well as a much lower cost than life insurance as well. Seniors as much as the chronilogical age of 85 are eligible to apply for a burial insurance plan and may qualify quite easily whether they have no serious health problems.
Advantages of Burial and Funeral Expense Insurance
These insurances are a good option for people who don’t want to cover huge insurance premiums for a lifetime insurance, but who don’t want to leave a big financial burden with regards to families when they pass. A few of the advantages of final expense insurance include:
Low monthly premiums
Coverage from $2,500 to $35,000
Application eligibility up to the age of 85
No health check required
Individuals with health problems may still qualify
Premiums never change
Policy accumulates a cash value
Worth of a Burial Insurance Plan
In the event that you lose a relative, you will probably be responsible to fund the expense of their funeral and burial services. While many people may have money saved up that they can pass for their family members to pay for these costs, quite a few people have died and passed the financial burden for their nearest and dearest and loved ones. What many individuals do not realize is the fact that even the most economical funerals still cost several thousand dollars thus why a Funeral Insurance policy may be beneficial. Some of the costs regarding the funeral include:
Funeral service including officiator, location rental for service, along with other accommodations
Flowers, photos, programs, and other service decorations
Funeral procession costs, including vehicles
Casket and case
Cemetery plot and headstone or marker
Other miscellaneous costs including accommodations for guests and refreshments
Since the costs of a funeral can range widely and unexpected costs can easily add up, purchasing a burial insurance plan is a great pre-emptive decision. Don’t create your nearest and dearest bother about costs once the only thing they should be worried about it honoring you in the easiest way possible. Cover yourself with a burial insurance or funeral insurance coverage today. Enter you information inside our form for a totally free quote now.
Death is one of the few certainties, but how you pay for your funeral is not. To deal with this afterlife financial issue, the insurance industry offers what it euphemistically calls “final expense plans.” The general public may know this type of coverage as burial policy or burial insurance. Consumer groups see them as a negative investment.
Whatever their name and reputation, these policies are a kind of very existence insurance which can be designed to pay money for certain expenses related to death, including a funeral, cremation and burial.
No health check
Burial policies are not the same thing as prepaid funeral policies, which are a technique for paying a funeral director ahead of time for your final arrangements. Death is just one of the few certainties, but the manner in which you pay for your funeral is not. To deal with this afterlife financial issue, the insurance industry offers what it euphemistically calls “final expense plans.” The general public may know this type of coverage as burial policy or burial insurance. Consumer groups see them as a negative investment.
Whatever their name and reputation, these policies are a form of life time insurance which are intended to pay for certain expenses related to death, including a funeral, cremation and burial.
No health check
Burial policies are not the same thing as prepaid funeral policies, that are a method for paying a funeral director ahead of time for your final arrangements, says Joe Skarda, director of education and training for Sapient Financial Group.
Whether or not it has a gentle name, like final expense, memorial or pre-need insurance, or is frankly called burial insurance, there are a number of plans on the market to people who desire to make sure they’ve tied up each of their financial loose ends before they depart this life. A form of burial insurance – known as industrial life, small benefit and street insurance – was widely sold door-to-door in poorer neighborhoods in the past, though that is now regarding the decline.
Whatever it’s called, burial insurance is, in fact, a kind of life insurance policies, and certainly will be a phrase or permanent life policy. Many insurance companies sell it – and it is sometimes contained in the pre-need packages offered by funeral homes.
The Burial Insurance Sell
Often marketed to seniors, burial insurance plays to a lot of powerful practical and emotional needs.
– Easy to obtain. You should buy the policy online or from the telephone without waiting for an insurance-company doctor to look at you. In fact, burial insurance does not require a medical exam. Applicants are inquired about age, smoking history and whether they now have some serious conditions, as well as some policies acceptance is guaranteed. Some require a two-year premium-paying period if your wanting to can collect and just insure you to a century of age. This could appear to be no problem, but don’t forget that one out 10 individuals who survive to age 65 are expected to call home past 95.
– Seemingly inexpensive. Burial insurance can be bought for a small amount, such as for example $5,000 and $10,000, while other term or whole life insurance might need substantially larger minimum coverage. The premiums for burial insurance may therefore seem more affordable than bigger benefits policies; look more closely before you select it’s a bargain.
– A love vehicle. The ads can be touching, touting burial insurance among the most critical things you can do for your family so that they don’t have to struggle to pay for your funeral and settle your bills. This will be a worthy goal, but burial insurance is neither truly the only, nor necessarily the best, method to achieve it.
Life Insurance Policies: Similar Cost, A Lot Higher Benefits
Consumer advocates have raised warning flags about burial insurance. It’s “a predatory kind of insurance,” according to J. Robert Hunter, director of insurance during the Consumer Federation of America. Individuals who buy it tend to be less educated, minority and low-income, and so they get an undesirable deal. Hunter reports he recently helped a woman buy a 20-year term life insurance policy with $75,000 in coverage for similar premium as a $5,000 burial policy.
Here’s why burial insurance is generally a bad deal. The actual fact that a health check is not required and acceptance is guaranteed means you’re being insured as part of a high-risk pool of men and women. To enable the insurer which will make a profit, the premiums have to be high in accordance with the benefit.
Yet a lot of people, even with severe medical issues, be eligible for policies often times better than burial insurance. Don’t assume poor health locks you out of underwritten term or permanent life insurance coverage policies. Term life insurance expires after a group period and you might need to go through the process again and never be eligible at that time, so find out what the choices are if the term expires. Permanent life insurance policies, given that name implies, is guaranteed to cover you as long as you pay the premiums.
A 3rd Option
Another strategy for making sure your survivors have money to pay for final costs is always to contribute regularly to a small savings account for that purpose, set up either as a trust or just as a joint account along with your designated survivor. This money might be withdrawn immediately if required after you die. Survivors won’t need certainly to wait for the insurance check or probate.
The Bottom Line
Think during your goals before you choose how exactly to set aside money for final costs. If the pressing issue is always to make certain you will find sufficient funds accessible to survivors to cover a funeral and settle bills, a term or permanent life insurance coverage can be bought – or a bank account put up – for that purpose.
If the main concern is to make certain that the individual’s wishes for burial, cremation and/or memorial service are going to be funded and followed, and also the demise is anticipated within the next few years, it might also pay to create pre-need pre-paid arrangements with a funeral provider. If a longer life is anticipated, this route has drawbacks, such as for instance a possible change of mind in regards to the services desired or a move to an area not even close to the funeral site
Burial insurance (aka funeral insurance) is a simple issue life insurance policy that covers people until they reach 100 years old. Burial insurance (also called funeral insurance) is promoted in an effort to pay in advance for the funeral expenses so that your nearest and dearest will not have to pay for your funeral. There’s a lot of actions you can take to help make your death easier regarding the wallets of these you adore. Preplanning your funeral saves money and grief, as well as deciding whether you intend to be buried in a casket or cremated and put into and urn, figuring out who gets what part of your estate, and recognise the business to choose for the perfect term life insurance policy (if you should be a senior)
Term life insurance benefits pay a certain amount of money. In the event that life insurance policy that you have has a death benefit of $1,000,000, after that your nearest and dearest will get a check for that balance once you die. They’re able to pay for final expenses away from that check or they’ve been liberated to put it to use nevertheless they want. The benefits do not have restrictions about what you can use them for.
Burial insurance is made to look after your final expenses. It is also sometimes called funeral insurance. This sort of coverage can just only be used to cover any expenses associated with the funeral. You won’t receive a lump sum as you would with insurance to pay nevertheless you would like. You are basically pre-paying your funeral costs just before die. You can find strict restrictions on how the money can be used unlike life insurance coverage.
Life insurance has its own choices to pick from. You can choose a permanent life insurance policy or a short-term one. Very existence insurance was designed to be a very long time policy while term only covers you for a certain amount of time. You can buy a phrase policy, survive through the term and exceed the advantages at some point.
Burial insurance is different from some forms of term life insurance for the reason that it generally does not expire. It will be there before you die. The sole time it pays out anything is when you die and it only will pay for your final expenses. Therefore, you don’t have many options with burial insurance. It is there for the burial only.
One key difference is within the section of accumulating cash value. With certain kinds of life insurance, you can easily accumulate cash value while you go. With this specific cash value, comes the capability to cash it out if you would like. As you would lose the death advantageous asset of the insurance policy, if you want the bucks it’s possible to have access to it. Another way that one may access the bucks is by the utilization of an insurance policy loan. Using a life insurance plan loan, you can access the funds with a decreased interest rate and flexible repayment terms. In addition, you will never need to pay tax in the money that you apply.
With a burial insurance coverage, there’s absolutely no cash value that accumulates. You simply can’t borrow against it and you also cannot cash it out. You simply pay your premiums or pay it all at the same time and it is there for if you die.
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