Are you wondering how to ease the financial burden on your family when the time comes to say goodbye to your parents? Burial insurance for parents can provide peace of mind by covering funeral expenses, so you don’t have to worry about the high costs of end-of-life arrangements. It’s a simple and affordable way to ensure that your loved ones are protected from unexpected financial stress during an already difficult time. By planning, you can focus on cherishing memories, knowing that the important details are taken care of.
What is burial insurance for parents?
If a parent has burial or final expense insurance, you can use the benefit for funeral and burial costs, medical bills, credit card debt, and other expenses.
Burial insurance for parents is a good idea—but there’s something even better.
What most people don’t know about burial insurance is that it’s a half-step. It won’t ensure that you will have money to pay for your parent’s funeral at the time it is needed. It doesn’t protect against inflation. And it doesn’t begin to protect children from the emotional burden of decision-making when a parent passes.
What Are Some Reasons for Burial Insurance for Parents?
- You need help paying for their final arrangements. The costs of funeral services are more expensive than they have ever been and they will continue to rise. Many families underestimate just how expensive funerals can be depending on the type of final arrangement (funeral or cremation) and the items chosen for the service (casket or urn, flowers, obituaries, transportation, use of the funeral home for viewing, etc.). Caskets alone can cost families thousands of dollars. Life insurance proceeds can help cover some of these costs, especially if the benefit is received quickly.
- You need help paying for their medical bills. The last few years of a person’s life can often be some of the most expensive. Depending on their health, your parents may be placed on expensive prescriptions or medical treatments, require more doctor or hospital visits, and may need around-the-clock care. In the final days of their life, they may need to be placed in a hospice facility. All of these medical expenses can be difficult to cover if you have a family of your own. A small life insurance policy can help cover any medical bills left behind.
- You need help moving your surviving parents. When one of your parents passes away, it can be difficult for the surviving parent to live alone. A lot of children will move their surviving parents closer if they live out of state or move them into an assisted community. The process of selling their home and moving them can cost thousands of dollars or more. Buying life insurance for your parents can help cover these costs and keep you and your loved ones from paying thousands of dollars out of your pocket.
Why Should I Buy Affordable Burial Insurance for Parents?
The main purpose of ensuring a parent is to help replace your lost income and savings, protecting yourself from future debt.
The expenses associated with caring for a loved one can wipe out the caregiver financially and be detrimental to the caregiver’s children, who might be relying on them to fund college or other future costs.
Buying a life insurance policy on a parent can help you recoup lost income and savings by paying out a death benefit, provided you are named as the beneficiary.
Both term life insurance and whole life insurance will pay out a death benefit; the difference is that term insurance will only pay out if the insured dies within a specified term, and whole life insurance guarantees a payout for life.
Whole life insurance also comes with additional benefits not found in a term policy. A whole-life policy earns guaranteed interest and non-guaranteed dividends. It has a cash value component, which functions like a high-interest savings account and can be used to fund expenses. It receives favorable tax advantages from the IRS and asset protection.
Types of Burial Insurance Policies for Parents
There are two main types of burial insurance policies for parents: term life insurance and whole life insurance.
Policy Duration
How long does the coverage last? Is it a term policy or a whole-life policy?
- Whole life insurance provides lifetime coverage and typically has higher premiums than term life insurance. It also has a cash value component that grows over time and can be borrowed against or used to pay premiums. This policy will ALWAYS be there when you need it.
- Term life insurance provides coverage for a specified period, typically 10-30 years. It is often the most Burial insurance option for seniors looking for coverage. BUT… over 98% expire as the insured outlives the policy. There is no cash value and no guaranteed insurability after age 70. This is a big money maker for insurance companies and is not advised for ages over 65 for final expenses.
What Does Burial Insurance For A Parent Cost
The Cost of burial insurance for parents depends on your exact age, gender, health, tobacco usage, state of residence, and the amount of coverage you want. Below are some sample monthly prices. To get a better idea of how burial insurance rates for parents compare across providers, we’ve compiled a table.
| Age & Gender | $10,000 | $25,000 |
| Female age 40 | $21 | $47 |
| Male age 40 | $25 | $57 |
| Female age 45 | $23 | $52 |
| Male age 45 | $27 | $63 |
| Female age 50 | $24 | $55 |
| Male age 50 | $31 | $71 |
| Female age 55 | $28 | $64 |
| Male age 55 | $36 | $84 |
| Female age 60 | $33 | $76 |
| Male age 60 | $43 | $103 |
| Female age 65 | $41 | $97 |
| Male age 65 | $54 | $130 |
| Female age 70 | $53 | $127 |
| Male age 70 | $70 | $169 |
| Female age 75 | $71 | $172 |
| Male age 75 | $97 | $238 |
| Female age 80 | $98 | $241 |
| Male age 80 | $135 | $332 |
| Female age 85 | $136 | $335 |
| Male age 85 | $178 | $440 |
| Female age 89 | $260 | $651 |
| Male age 89 | $357 | $888 |
Benefits of burial insurance for the elderly:
- Financial protection: Burial insurance for parents can provide financial security and support to the family in the event of the parent’s death.
- Peace of mind: Having burial insurance can provide peace of mind to both parents and their families, knowing that final expenses are covered.
- Easy to qualify: Burial insurance policies are often easier to qualify for than traditional life insurance policies, making them a good option for seniors or those with health issues.
Disadvantages of Burial Insurance for Parents
- Cost: Burial insurance premiums can be expensive, especially for older parents or those with health issues.
- Coverage limitations: Some burial insurance policies may have restrictions on coverage amounts or exclusions for certain types of deaths, such as suicide.
- Underwriting requirements: Depending on the type of policy and the provider, parents may need to undergo a medical exam or provide health information to obtain coverage.
Can I Purchase Burial Insurance For my Parents?
Yes, you can buy burial insurance for your parents in just minutes, all you need is their consent. You can fill out an application for them, pay for the policy, and be the beneficiary with no problems. With that being said, it does not mean they will qualify for every type of burial insurance policy.
Some types of burial insurance for elderly parents come with a waiting period, and others do not but require a few health questions and underwriting. In either case, there is no medical exam for burial insurance.
How to buy burial insurance for parents?
When you get to a social security age and all your kids are grown there are usually two things to protect. Your spouse and your family will have a financial burden upon your death.
Let’s face it when you are in your mid-sixties health issues are very likely to arise. You want to make sure you have a final expense life insurance policy to cover the cost of your funeral.
Overall, this will provide peace of mind knowing a family member will not have the financial burden of paying the funeral home.
When purchasing burial life insurance for seniors you want to make sure the amount of coverage will not only provide for burial but perhaps medical bills as well.
Above all, you want to deal with a well-known burial insurance company.
You are going to want the type of insurance the company offers to be what you are looking for.
There are a few types of life insurance that will not require a medical exam.
Of course, the healthier you are the more you will save money. Here are the three types of life insurance coverage you will receive when looking for a burial policy.
These will all have a different premium payment. However, the good thing to know is even if you have a severe health issue some policies offer guaranteed coverage.
Conclusion about Affordable Burial Insurance for Parents
Burial insurance for parents can provide financial protection and peace of mind to both parents and their families by covering the costs associated with a funeral and other final expenses. By understanding the different types of policies available, comparing rates across providers, and considering individual needs and circumstances, parents can find the right burial insurance policy for parents to meet their needs.
FAQs about Affordable Burial Insurance for Parents
Generally, burial insurance proceeds are not subject to federal income tax. However, there may be exceptions in certain circumstances, such as if the policy was purchased under a business arrangement or if the death benefit is paid out in installments.
Final expense whole life insurance is the best type of policy to buy if you need coverage to pay for your parent’s funeral costs. It’s permanent life insurance that lasts forever and has a fixed monthly price. Buying a term life insurance policy is not advisable because they generally terminate around age 80. While term insurance products are cheaper, most seniors outlive them, leaving you with no insurance to cover their burial expenses. A universal life insurance plan is also one to consider, given that it is a type of permanent life insurance. The primary difference between Whole and Universal Life is that a UL policy has payment flexibility and costs slightly less. However, universal life, like term insurance, is risky since the payments often increase after age 75, making it unaffordable and thus losing coverage.
References:
