Best Burial Insurance for Seniors

As seniors age, one of the things they start to consider is how they will be laid to rest. Burial insurance is a form of life insurance that is specifically designed to cover funeral expenses, and it is a wise investment for seniors who want to ensure that their loved ones are not left with the financial burden of their final arrangements.

What is burial insurance?

Burial insurance, also known as final expense insurance, is a type of life insurance policy that specifically covers the costs associated with funeral expenses. This type of policy is typically purchased by seniors who want to ensure that their loved ones are not burdened with the high cost of a funeral after they pass away.

When a senior purchases a burial insurance policy, they make monthly premium payments to the insurance company. In exchange, the insurance company agrees to pay out a predetermined sum of money to the senior’s beneficiaries upon their passing. This money can be used to cover funeral costs, as well as any other expenses that may arise after the senior’s passing.

Factors to consider when choosing burial insurance

When choosing a burial insurance policy, there are several factors that seniors should consider. These include:

Factor
Explanation
Age
The older a senior is, the higher their premiums will be.
Health
Seniors with pre-existing health conditions may have higher premiums or may not qualify for certain policies.
Coverage amount
Seniors should consider how much coverage they need to ensure that their final expenses are covered.
Beneficiary
Seniors should choose a beneficiary who they trust to handle their final arrangements.

Types of burial insurance policies

There are two main types of burial insurance policies: pre-need and final expense. Pre-need policies are typically sold through funeral homes and are designed to cover the specific costs of the funeral services offered by that funeral home. Final expense policies are sold through insurance companies and can be used to cover a wider range of expenses.

Pre-need policies

Pre-need policies are typically purchased through funeral homes, and the policyholder specifies which funeral services they want to be covered by the policy. These policies may also include provisions for cemetery plots or cremation services. Pre-need policies can be more restrictive than final expense policies, as they can only be used to cover the specific services outlined in the policy.

Final expense policies

Final expense policies are sold through insurance companies and can be used to cover a wider range of expenses, including funeral costs, medical bills, and other end-of-life expenses. These policies can be more flexible than pre-need policies, as the beneficiary can use the funds as they see fit.

Top burial insurance providers for seniors

There are several top burial insurance providers that offer policies specifically designed for seniors. These providers include:

1. AARP

AARP is a well-known provider of senior-focused insurance products, including burial insurance. Their final expense policy offers coverage amounts of up to $50,000 and is available to seniors up to age 80. AARP’s policies also include a no-exam option for those who may have difficulty passing a medical exam.

2. Mutual of Omaha

Mutual of Omaha offers a final expense policy with coverage amounts of up to $40,000. This policy is available to seniors up to age 85 and includes a guaranteed level premium, which means that the premium will not increase over time.

3. Globe Life

Globe Life offers a burial insurance policy with coverage amounts of up to $100,000. This policy is available to seniors up to age 80 and includes a no-exam option for those who may have difficulty passing a medical exam.

FAQs

1. Is burial insurance necessary?

While burial insurance is not a requirement, it can be a wise investment for seniors who want to ensure that their final expenses are covered and that their loved ones are not left with the financial burden of their funeral.

2. What is the cost of burial insurance?

The cost of burial insurance will vary depending on factors such as age, health, and coverage amount. Seniors should shop around and compare policies to find the one that best fits their needs and budget.

3. Can I purchase burial insurance for someone else?

While a senior can purchase a burial insurance policy for themselves, they can also purchase a policy for someone else, such as a spouse or child.

4. What happens if I pass away before my burial insurance policy is paid off?

Most burial insurance policies are fully paid after a set number of years or upon the policyholder’s passing. If the policyholder passes away before the policy is fully paid, the remaining balance will be paid out to the beneficiary.

5. Can burial insurance be used for other expenses besides funeral costs?

Final expense policies can be used to cover a wide range of end-of-life expenses, including medical bills and other debts. However, pre-need policies are typically more restrictive and can only be used to cover specific funeral services.