Common questions Answered
Funeral insurance, also known as burial insurance are small whole life insurance policies designed to cover the policyholder for the duration of his or her life.
About this Article
I receive daily requests about Funeral Insurance, especially from the children of parents that may be in need of a policy. I wanted to address this group ( Children of parents / Siblings) in this article . However , if you are looking for your own plan , the same information will apply.
As a child of aging parents, you may be seeking ways to ensure their financial future. These plans can help you, siblings and other surviving members, to sufficiently handle the final expenses when the time finally comes.
Funerals, can be costly and can include fees for the wake, travel arrangements for distant relatives, unpaid debts and the actual burial or funeral itself.
Why Purchase Funeral Insurance?
While death is never something that we like to think about, planning sooner rather than later may be in your best interest.
Oftentimes, you will receive better rates for purchasing a burial insurance policy for your parents now while they are in better health; if you wait until later and they develop health complications, you may be facing a higher premium.
Additionally, as a child, you want to honor your parents’ wishes and now is the time when you should discuss their thoughts and wants for their funerals, burials or other final plans.
If you have siblings, it is often better to secure a plan ahead of time so that no last minute costs have to be worried about during what is an already a difficult and emotional time. Poor planning can disrupt lives and income.
Guidelines of Funeral Insurance
As a child securing life insurance for your parents, you can be the owner of the policy, make payments on the plan and designate yourself as the beneficiary simultaneously.
Depending on the provider, the insured individual must be between 50 and 84 years of age. Some carriers will offer coverage to those that are 40.
The benefits can range from anywhere between $1,000 to $50,000 or more, depending on the age.
Additionally, if you would like to purchase more than one policy for your parents, you are often able to “stack” policies to obtain the amount of coverage you desire.
Do I need to take a medical exam?
Funeral Insurance plans, are No exam life insurance or simplified issue life insurance are policies in which physicals or medical exams are not required.
On these applications, you will answer both “yes” and “no” questions for the policy for which you are interested; you may also need to agree to a Medical Information Bureau (MIB) report or pharmacy check to verify medications, current health condition and other related information.
Funeral Insurance Payouts and Payment Options
If your parents qualify for an immediate benefit, the entire benefit amount will be put in place from the first day they are accepted.
However, if your parents have health conditions and do not qualify for immediate benefits, the insurance provider may offer you a graded or modified life insurance plan instead. These plans do not typically offer the full coverage amount until two or three years have passed.
While many policyholders make payments on their plans every month, some providers allow you to pay annually, single lifetime premium payment or offer three- to 10-year payment plans.
The difference between Guaranteed Life Insurance / Graded Life Insurance and Funeral Insurance
Guaranteed issue life insurance is offered to those in poor health or of higher risk. The maximum amount of coverage is roughly $10,000 , some carriers will go up to $25,000. Most offer the same age restrictions as traditional funeral insurance plans.
All of the policies are graded life plans and usually require the policyholder to wait two years before the full face amount is in effect. However, if the insured passes before this happens, the carriers will return the premiums paid and some will pay interest on the money.
If your parent(s) pass accidentally due to a fall or a car crash, some providers may provide the full amount of the policy, regardless of when the policy was to be put in force.
These plans do not require health checks or medical questions, yet they may be expensive for those with limited income.
I work side-by-side with numerous companies that provide products to which I can offer to almost anyone, regardless of his or her current health condition. Some of the most popular carriers of these policies include:
- – Vantis Life
- – United Home Life
- – Royal Neighbors of America
- – Monumental Life
- -Gerber Life
- – Foresters Life
- – Forethought Life
- – Assurity Life
- – Americo
- – American Memorial
If you would like to run a quote please click HERE
As a broker, M2 Insurance, has access to numerous life insurance companies that deal , specifically , with funeral insurance. If you work with someone who can only offer one or two plans, you are eliminating many options that you may not have previously considered.
Please fill out my contact form or better yet, give me a call for a free no hassle no pressure quote. My number is 512-963-5000.