Funeral costs have gone up, now over $9,000 on average, says the National Funeral Directors Association1. This shows why seniors over 70 need affordable final expense coverage. Luckily, the right burial insurance can help protect your finances during tough times.
Burial insurance, or final expense insurance, is a whole life policy for end-of-life costs. It’s different from regular life insurance because it covers $2,000 to $50,000. This makes it easier for seniors with fixed incomes to get2. Plus, you don’t need a medical check-up, which is great for those with health issues.
Key Takeaways:
- Burial insurance offers affordable coverage for final expenses, with policies ranging from $2,000 to $50,000.
- Mutual of Omaha, SBLI, TruStage, and State Farm are top-rated providers with various burial insurance options.
- Factors like age, health, and coverage amount can impact the monthly premiums, which typically range from $30 to $70.
- Burial insurance policies are whole life insurance with guaranteed death benefits and cash value accumulation.
- No medical exam is required, making burial insurance accessible for seniors with pre-existing conditions.
This expert guide will help you find the best burial insurance for seniors over 70. It’s packed with the info you need to choose the right coverage for your final expenses.
Understanding Burial Insurance for Seniors
Burial insurance, also known as final expense insurance, is a whole life policy for seniors. This coverage is key for it helps pay for funeral costs, medical bills, and debts. It’s designed to ease the financial load on loved ones.
These policies are smaller, up to $50,000, and easier to get. They’re perfect for seniors with health issues.
What is Burial Insurance?
Burial insurance is a special life insurance for seniors and their families. It covers final expenses. Unlike regular life insurance, it’s more accessible.
There are two types: simplified issue (no medical exam, health questions) and guaranteed issue (no health questions, guaranteed approval)3. It offers financial security and peace of mind.
Why is it Important for Seniors?
Burial insurance is vital for seniors. It eases the financial burden on their loved ones3. The average funeral in the U.S. costs $7,6403.
By getting burial insurance, seniors can ensure their final expenses are covered. This protects their families from unexpected costs. It lets them focus on grieving without worry.
| Age Range | Average Cost for $5,000 Death Benefit | Average Cost for $10,000 Death Benefit |
|---|---|---|
| 60-65 | $18 – $88 | N/A |
| Over 85 to Under 90 | $51 – $268 | $204 – $286 (Women), $299+ (Men) |
The cost of burial insurance varies by age, gender, and coverage amount4. Seniors should pick a policy that fits their budget and needs.
“Investing in a burial insurance policy can provide valuable financial protection for seniors and their families during a difficult time.”
Key Features of Burial Insurance
Burial insurance, also known as final expense insurance, offers many options for seniors over 70. It has flexible coverage amounts and fixed premiums. This insurance provides valuable financial protection during tough times5.
Coverage Options
Burial insurance policies cover from $2,000 to $50,000. Seniors can pick a plan that fits their budget and funeral plans5. This flexibility helps cover essential end-of-life costs like burial and cremation.
Premium Structures
Burial insurance has a fixed premium structure. The monthly payments stay the same, giving seniors predictable and affordable costs5. This makes it easier for seniors to plan for their final expenses.
Exclusions and Limitations
While burial insurance covers a lot, there are some exclusions and limitations. Some policies have a two-year waiting period for non-accidental deaths6. But, providers like Mutual of Omaha and Aetna offer policies with no waiting period for accidental or natural deaths6.
Also, some policies include living benefits. Seniors can get a part of the death benefit if they have a terminal illness or need long-term care5.
“Burial insurance is a smart investment for seniors who want to ensure their final expenses are taken care of, without burdening their loved ones.”
Factors to Consider When Choosing Burial Insurance
Choosing the right burial insurance policy is important. You need to think about your age, health, the policy amount, and the provider’s reputation. Each factor is key to finding the best senior life insurance for you.
Age and Health Conditions
Burial insurance for seniors over 70 offers coverage up to $50,000 without medical exams7. Some plans, like Mutual of Omaha’s “Living Promise,” go up to $40,0007. Gerber Life offers $5,000 to $25,000 for those 50-80 years old, with quick approval7.
People with health issues might find certain insurers more welcoming. It’s smart to compare different options.
Policy Amount
The policy amount should cover funeral costs and debts. Foresters Financial starts at $25,000, while Midland National offers $100,000 for those 70 and up7. American National has guaranteed universal life insurance starting at $25,000, with growth and optional benefits7.
Provider Reputation
Look at the provider’s financial strength, customer satisfaction, and regulatory standing. Check A.M. Best ratings and NAIC customer reviews8. Reputable providers like AARP and Colonial Penn offer various options9.
By considering these factors, you can confidently choose the right burial insurance. This ensures you get the coverage you need within your budget.
Top Burial Insurance Providers for Seniors
For seniors over 70, finding the best burial insurance is key. Several leading providers offer great coverage, competitive prices, and reliable service. This helps seniors and their families plan for the future10.
Overview of Leading Companies
Mutual of Omaha is a top name, providing up to $50,000 in coverage with no waiting period for many health issues10. Aetna is another great choice, with affordable final expense coverage for those in their 70s11. AARP/New York Life is known for low complaints and policies for members aged 50-8510.
American Family lets customers bundle burial insurance with other products. Ethos offers instant coverage options10.
Comparison of Coverage Plans
| Provider | Coverage Limit | Age Range | Notable Features |
|---|---|---|---|
| Mutual of Omaha | Up to $50,000 | 45-85 | No waiting period for many health conditions, quick claim payments |
| Aetna | Up to $25,000 | 50-89 | Competitive rates for seniors, high financial strength ratings |
| AARP/New York Life | Up to $25,000 | 50-80 | Low consumer complaints, available through AARP membership |
| American Family | Up to $25,000 | 50-85 | Bundling options with other insurance products |
| Ethos | $10,000 to $25,000 | 65-85 | Instant coverage options, guaranteed acceptance |
These top providers offer a variety of coverage and features for seniors. Whether you need high coverage, competitive rates, or easy application, these companies are good choices for final expense planning101211.
Cost of Burial Insurance
When looking for affordable final expense coverage, the cost of burial insurance for seniors is key13. On average, a burial insurance policy is worth about $25,000 and starts right away13. Today, more than 70% of funerals in big cities are cremations13. The cost of a traditional funeral is usually between $8,000 and $12,00013.
Average Premium Costs
The cost for burial insurance can be between $50 and $100 a month for a $10,000 policy13. Policies for burial insurance usually range from $1,000 to about $40,00013. Things like age, gender, health, where you live, and how much coverage you want can change the cost13. For example, a 70-year-old woman might pay $53 a month for $10,000 coverage, while a 70-year-old man might pay $7013.
Factors Influencing Price
Other things that can affect the cost of burial insurance include smoking, health issues, and the type of policy13. Guaranteed issue life insurance policies have smaller face amounts but pay the full amount if death is accidental13. Also, no medical questions or exams are needed for guaranteed approval of burial insurance, making it a good choice for seniors13.
To find the most affordable final expense coverage, it’s important to use price comparison tools and do your research14. This way, you can make a smart choice and get the best burial insurance policy for your budget14.
| Metric | Value |
|---|---|
| Hours of Research | 40+ |
| Policies Reviewed | 35 |
| Policies Selected | 10 |
| Companies Considered | 24 |
| Companies Selected | 10 |
| Average Cost of a Funeral | $7,000 to $10,000 |
| Eligible Ages for Burial Insurance Policies | 18-85, depending on the provider |
| Death Benefit Amount | $2,000 to $50,000 |
| Waiting Period | Typically 2 years for most policies |
| Policy Maturity | Varies, but some have maturity ages of 121 years |
| Life Insurance Companies Included in the Sample | AARP, Mutual of Omaha, AIG, Transamerica, Foresters Financial, Colonial Penn, Fidelity Life, Gerber Life, Sagicor Life, Americo |
| Eligibility | AARP Members aged 50-80 and their spouses aged 45-80 are eligible for certain policies |
| Premium Payment Policy | AARP offers a unique “Paid-Up” feature where premium payments end at age 95 but coverage continues for life |
“Life insurance for seniors is typically meant to cover final expenses like burials, cremations, or other funeral expenses.”13
By knowing the average costs and what affects the price of burial insurance, seniors can make a smart choice. They can find the most affordable final expense coverage to meet their needs1413.
How to Apply for Burial Insurance
Getting burial insurance is easy. It involves a few simple steps. You can choose from simplified underwriting or no medical exam required. The process is designed to be quick and easy.
Application Process Steps
- Find a reputable burial insurance provider that meets your needs and budget.
- Pick the coverage amount that will cover your final expenses15.
- Fill out a brief health questionnaire, if needed for a simplified issue policy. No medical exam is required10.
- Submit your application, either online or by talking to an agent10.
Documentation Required
You’ll need to provide just a few documents. You’ll need proof of your identity, age, and who you want to receive your benefits. Some providers might ask for a driver’s license or birth certificate10.
The application can take as little as 10 minutes or up to 2 business days. With simplified underwriting and no medical exam required, getting burial insurance is easier than ever10.
“Applying for burial insurance is a simple and straightforward process that can provide much-needed financial protection for your loved ones.”
| Provider | Ratings | Distinguishing Features |
|---|---|---|
| State Farm | Exceptional financial strength ratings10 | Consistently ranked No. 1 in J.D. Power’s annual customer satisfaction study for individual life insurance10 |
| AARP | Exceptional financial strength rating, fewer than expected complaints to state regulators10 | Best known for instant coverage in the burial insurance sector10 |
| Mutual of Omaha | – | Regarded as the best for accessibility10 |
| American Family | – | Esteemed as the best for bundling in burial insurance10 |
Common Myths About Burial Insurance
Many seniors over 70 have misconceptions about burial insurance. Some think there’s always a waiting period or that you need to be in good health. But, the truth is different16.
Debunking Misconceptions
Actually, many seniors can get coverage right away, even with past health problems. Most burial insurance policies pay out if the insured dies within two years16. Guaranteed Issue Life Insurance Policies, which don’t ask health questions, usually don’t pay out in the first two years16.
Another myth is that burial insurance is very pricey. While prices vary, there are many affordable choices. Funeral costs can be over $9,00017. Monthly premiums for burial insurance are usually $50-$10017. Policies cover amounts from $2,000 to $50,00017.
Understanding Actual Costs
Burial insurance isn’t the same as pre-paid funeral plans. It offers more flexibility in how funds are used. AARP’s life insurance program is pricey compared to others17. But, most people buy $10,000 worth of coverage17. Working with an independent broker can help find a policy that accepts all health issues and offers full coverage from day one18.
By clearing up these myths and understanding costs and options, seniors can choose the best burial insurance. This way, they can meet their needs171618.
Tips for Finding the Best Policy
Start by looking at different insurance options and getting advice from experts. Compare what each policy offers, how much it costs, and what health checks are needed. Online tools can show you prices from various companies, helping you find the best deal19.
It’s smart to talk to an independent insurance agent. They can show you policies from many companies. They know the details of term life, whole life, and final expense insurance20. They make sure the policy fits your needs and budget20.
Don’t think health problems mean you can’t get good rates or coverage right away19. Some companies might be more open to working with you. Look at what others say and how strong the company is financially to find the best burial insurance for seniors over 70.
Getting advice from a pro can help you understand your policy better. They can make sure it’s right for you. They’ll answer your questions and help you make a good choice.
“Comparing quotes from different life insurers can help individuals find the lowest rates for the desired coverage.”19
By doing your homework and talking to a knowledgeable agent, you can find the best burial insurance for seniors over 70. This will give you the coverage and peace of mind you need1920.
Conclusion: Making an Informed Choice
Recap of Key Points
Burial insurance is a smart choice for seniors. It helps protect loved ones from the cost of funeral expenses. Knowing what burial insurance offers, like coverage and premiums, helps you choose wisely21. It’s available to those aged 50-85, with options starting at $50,00021.
Final Thoughts on Burial Insurance for Seniors
When picking a policy, think about your age, health, and how much coverage you need21. The older you are, the more expensive it gets. Seniors over 70 pay a lot more than those in their 50s or 60s21.
Looking at different providers can help find the best deal. For example, a $10,000 policy at 70 can cost between $73 to $97 monthly, based on gender22.
The right policy gives you and your family peace of mind. It ensures funeral costs are covered, not leaving a financial burden21. Social Security only offers $255 for burial costs, making final expense insurance vital21. Think about your needs, budget, and health when choosing to secure your future22.
FAQ
What is burial insurance and how does it work?
Why is burial insurance important for seniors?
What are the key features of burial insurance?
What factors should I consider when choosing a burial insurance policy?
Who are the top providers of burial insurance for seniors?
How much does burial insurance for seniors typically cost?
What is the application process for burial insurance?
What are some common myths about burial insurance for seniors?
How can I find the best burial insurance policy for my needs?
Source Links
- 2024 Final Expense Insurance Guide + Costs for Seniors – https://www.lhlic.com/final-expense-insurance/
- Top 10 Best Burial Insurance & Final Expense Insurance Companies – Top Quote Life Insurance – https://www.topquotelifeinsurance.com/burial-insurance/
- Aflac Supplemental Insurance – https://www.aflac.com/resources/life-insurance/final-expense-insurance-for-seniors.aspx
- The Complete Guide to Final Expense & Burial Insurance for Seniors – https://www.lhlic.com/consumer-resources/burial-insurance-for-seniors/
- Burial Insurance For Seniors Over 70 (Rates & Companies) – https://choicemutual.com/blog/burial-insurance-over-70/
- Burial & Final Expense Insurance For Seniors (2024 Guide) – https://choicemutual.com/blog/burial-insurance-seniors/
- Best Burial and Life Insurance for Seniors over 70 and 75 for 2024 – https://burialinsurancepro.org/best-burial-and-life-insurance-for-seniors-over-70-and-75/
- 2024 Guide to Funeral and Burial Insurance – https://www.lhlic.com/consumer-resources/burial-funeral-insurance/
- Burial Insurance | Bankrate – https://www.bankrate.com/insurance/life-insurance/burial-insurance/
- 5 Best Burial Insurance Companies of November 2024 – NerdWallet – https://www.nerdwallet.com/p/best/insurance/burial-insurance
- 8 Best Burial & Final Expense Insurance Companies In 2024 – https://choicemutual.com/blog/best-burial-insurance-companies/
- Here are the 4 best burial insurance companies – https://www.cnbc.com/select/best-burial-insurance-companies/
- Best Burial Insurance for Elderly – Mintco Financial – https://www.mintcofinancial.com/best-burial-insurance-for-elderly/
- The Best Burial Insurance Plans of 2024 – https://www.payingforseniorcare.com/best-burial-insurance-plans
- Best Life Insurance For Seniors Over 70-74: Final Expense & Burial Insurance – https://finalexpensedirect.com/best-life-insurance-for-seniors-over-age-70-71-72-73-74/
- Three Myths About Burial Insurance | A Good Goodbye – https://agoodgoodbye.com/guest-blog-posts/three-myths-about-burial-insurance/
- Free Burial Insurance For Seniors (Get The Truth Here) – https://choicemutual.com/blog/free-burial-insurance/
- Best Life & Burial Insurance With No Waiting Period In 2024 – https://choicemutual.com/blog/burial-insurance-with-no-waiting-period/
- Aflac Supplemental Insurance – https://www.aflac.com/resources/life-insurance/best-life-insurance-for-seniors-over-70.aspx
- Complete Guide to the Best Life Insurance for Seniors – https://www.lhlic.com/consumer-resources/best-life-insurance-for-seniors/
- 2024 Final Expense Insurance Guide (Costs, & Senior Plans) – https://choicemutual.com/blog/final-expense-life-insurance/
- Do You Need Burial Insurance? – https://www.forbes.com/advisor/life-insurance/burial-insurance/