Burial Insurance for Parents | 5 FAQs
There are many questions regarding buying burial insurance for your parents and for that reason, we are going to address the top 5.
Certainly, we all love our parents and appreciate the sacrifices they made for us during the years that we depended on them for so much.
There will typically come a time when we wonder if they have the insurance needed to cover their final expenses when that terrible day finally arrives. It’s not unusual to wonder about the inevitable and to somehow plan for it.
For those of us who are reluctant to have that dreaded conversation with their parents or simply refuse to, it’s practical to buy burial insurance for your parents just in case they (for whatever reason) didn’t financially plan for the inevitable.
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Can I buy Burial Insurance for my Parents?
The short answer is YES. You can absolutely buy burial insurance on your parents because as their child, you have an insurable interest.
Insurance regulators understand that the relationship between the child and parent always suffices for insurable interest because children generally suffer a financial loss when a parent passes away.
Certainly, not always, but for the majority, the insurable interest exists because of the familial relationship.
We have spoken with clients that admitted they didn’t feel right buying life insurance on their parents when they are the beneficiary and we understand that could be an issue.
If that issue arises, we generally recommend the client to name another sibling or other close and trusted family member as the beneficiary to alleviate those feelings that you’re on the edge of doing something that is bothersome for you.
If that’s the case and you decide to not be the beneficiary, make certain you have a conversation with the person you wish to name and get their approval.
So then, we’ve established that you can legally purchase burial insurance on your parents but you cannot do so behind their back.
Although your parent(s) will never need a medical exam when you apply for the insurance, they must agree to the medical underwriting that will take place.
There is some medical information that’s obtained electronically along with health questions on the application and your parent(s) must give their consent because of HIPPA laws that are for their protection.
If you fail to get your parents’ signature on the medical consent form, the insurance company will not issue a policy.
You can, however, buy a guaranteed issue life insurance policy (also known as guaranteed acceptance) which doesn’t consider medical underwriting.
Why not just purchase Guaranteed Issue Burial Insurance?
Although a guaranteed issue policy is easier and quicker to purchase, there are two distinct drawbacks with this type of policy and should only be purchased as a last resort.
Since the insurers offering guaranteed issue policies are accepting an unknown health risk, there will be a two-year waiting period before the full death benefit will be paid for death from natural causes, the maximum death benefit is greatly reduced, and the rates are much higher than a medically underwritten policy.
What’s the maximum age for Burial Insurance?
Although many burial insurance companies limit insurance policies to people 80 years old or younger, there are some companies that offer coverage up to 85 years old. In both cases, however, your parent(s) will have to medically qualify to get a level benefit policy where there is no waiting period.
Here are the companies we recommend for seniors up to 80 years old:
These are the companies that we recommend for seniors from 81 to 85 years old:
- Mutual of Omaha
It’s important to note, however, life insurance rates are primarily based on the age of the applicant. For this reason, it certainly makes better financial sense to apply for your parent’s life insurance as soon as possible. You cannot buy burial insurance for your parents cheaper than if you buy it today.
How much Burial Insurance should I Buy?
This is a very important question. Not having enough burial insurance typically results in surviving children or loved ones having to come out of pocket for funeral expenses.
Funeral and burial costs are affected primarily by the services and products you buy as well as the area the funeral and burial will take place. There are several websites that specialize in funeral and burial planning and can provide a very close estimate based on your needs.
To be safe, we recommend that you buy a little more than the cost of the funeral and burial because inevitably additional unexpected expenses will surface when you’re planning the funeral and burial service.
The most popular websites that will offer funeral and burial estimated costs are:
Any of these websites can be a great resource for planning and pricing funeral and burial services in your area.
The national average is typically in the neighborhood of $8,000 to $10,000 but could easily be more than that based on where you live and any additional services or products that you want to add to the traditional service list.
What steps should I take to buy Funeral Insurance for my Parents?
First of all, don’t start calling various insurance companies about burial insurance for your parents. If you do, each company (especially the ones on TV) is going to quote you guaranteed issue insurance which has a waiting period and horrendous prices.
The first and only step you need to take is to contact an independent insurance agent that represents multiple highly-rated insurance companies so they can quote your cased with every company they represent.
We recommend that you take a little time to find an independent agency that specializes in final expense, funeral and burial insurance (they are the same) because agents who specialize in these products will have a better understanding of the challenges that are presented when you are shopping for seniors with various health issues.
Remember, do not accept a policy that is guaranteed issue or guaranteed acceptance unless your parent(s) don’t medically qualify for a LEVEL benefit plan or you are unable to get them to agree to the medical underwriting.
Independent agents represent insurance companies but they don’t work for the insurance company which means they will always put the needs of their clients and prospective clients first. The steps that you should take are:
- Find out how much insurance you need (but buy a little more)
- Have your parent(s) sign the medical consent and get their medical information
- Complete the application with the agent and quote you selected
- Make your first payment and the policy will follow not long after that
How much does Burial Insurance typically Cost?
To give you an idea of how much the monthly premium will be for burial insurance for your parents, we are providing two actual premium examples for a level benefit policy.
$15,000 Burial Insurance Policy for a Male and Female Non-Smoker in average health:
|Age of Applicant||Male Non-Smoker||Female Non-Smoker|
Buying Burial Insurance for your parents is a good idea even if you know for sure that they already coverage in place.
The last thing that you’ll want to deal with when you are grieving over the death of a parent is whether or not they had enough life insurance to cover the cost of their funeral and burial.
For more information about Burial Insurance or to get a free and confidential quote, call LJM Life Insurance at (844)-528-8688 during normal business hours or contact us through our website at your convenience.