There comes a time when you start thinking about the costs that will fall to you when your parent’s health starts to decline. Funeral expenses can range from $8,000 – $12,000. This is a high cost for any family, but especially if you and your siblings are not prepared.
Burial insurance is an affordable solution to help cover these final expenses. However, like most life insurance, there are regulations that need to be followed when taking out a policy.
Can I Buy Burial Insurance For My Parents?
Your parent must be involved in the process by agreeing to the coverage and signing their name on the application. The child is allowed to be the payor and the beneficiary but must get the parent’s consent to take out a policy. By following these steps, you can purchase burial insurance for your parents.
Even the most lenient burial insurance companies have this requirement.
The Basics Of Burial Insurance
Burial life insurance is commonly referred to as final expense or funeral insurance. This is a type of whole life insurance built for seniors to cover their funeral costs and other final expenses.
Two main things make it different from a traditional whole life product, no medical exam requirements, and affordability.
No Medical Exams: These plans have simplified issue underwriting, meaning your parent will not be asked to get an exam. The 30-minute application process takes place over the phone from the comfort of their own home. Your parent will need to be on the call and answer a series of yes or no health questions.
Affordable Coverage: The coverage amounts range from $2,000 – $40,000. Smaller death benefit options make the monthly premiums much more affordable than a larger whole life insurance plan. Since it is whole life insurance, your family will still receive valuable permanent benefits.
The security that comes with a whole life policy is knowing that there will be no fluctuations in price or coverage. Insurance for your parents shouldn’t be hard or confusing.
Price Never Increases: The monthly premiums you or your parent pays will never increase. Regardless of how long the policy is in force, the price is locked in. For any senior on a fixed income, this feature is essential.
Coverage Never Decreases: The coverage amount will never terminate or lower. When taking out a plan for funeral expenses, it is vital that the policy is active when you and your family need it. This plan gives you and your parent the peace of mind knowing coverage is locked in, and final expenses will be taken care of.
Builds Cash Value: A portion will go towards the plan’s cash value for each payment made. The accumulated cash value allows the policyholder to borrow from the plan if they wish.
Buying Burial Insurance On Someone Else
You can get final expense insurance on someone else as long as there is an insurable interest.
What Is Insurable Interest?
Insurable interest exists when the loss of a loved one would result in hardship. Taking out a burial life insurance policy for a parent is intended to protect against financial hardship.
On the other end, if the policyholder has a financial incentive for loss of life, this would create a moral hazard and would lack insurable interest.
Insurable interest occurs when getting life insurance on a family member (mother, father, grandparent, sibling, etc.). Since you are looking into purchasing coverage for a parent, this would establish the required insurable interest.
Can You Buy Life Insurance on a Parent Without Their Consent?
You cannot purchase life insurance on someone without their permission. When buying burial insurance for your parent, they will need to be apart of the process.
The minimal standard to apply for funeral insurance for parents is an electronic signature and phone interview. Any intentional violation of the rules would be considered insurance fraud.
Burial Insurance for Sick Parents
Senior life insurance companies are more lenient than many other types of insurance coverage. Sick parents can qualify for coverage with no medical exam.
Acceptance depends on their diagnosis. Current cancer, nursing home confinement, continual oxygen use, or being bedridden are some of the common conditions that will be cause for needing a policy that has guaranteed acceptance with no questions asked.
To get lower rates and no waiting period, your parent will have to answer a series of yes or no medical questions and qualify for a top-tier plan. You might be surprised what health considerations these insurance companies will accept.
Speaking with an agent who has experience in high-risk senior life insurance will be your best option. These agents can pre-qualify your parent for coverage and give you quotes to bring to them.
Final Expense Life Insurance for Parents Over 80
Burial life insurance for the elderly is attainable. Certain life insurance companies provide initial coverage up to 89 years old.
With that said, the more elderly someone is, the more expensive their premiums will be. Taking out coverage sooner rather than later is going to pay a big difference in the monthly price.
Funeral Insurance For Parents Quotes
The chart below shows the price ranges of burial life insurance for your parents, depending on age, coverage amount, and health history.
A healthier person can expect to pay towards the lower end of the price range. Conversely, a sick parent with a more complicated medical history can expect to pay more.
Monthly Premium Range
|45||$23 – $34||$32 – $49||$42 – $64|
|50||$24 – $39||$35 – $57||$45 – $80|
|55||$28 – $47||$40 – $69||$52 – $103|
|60||$33 – $54||$48 – $80||$63 – $119|
|65||$41 – $66||$60 – $99||$79 – $146|
|70||$53 – $80||$78 – $120||$103 – $177|
|75||$72 – $116||$107 – $173||$142 – $254|
|80||$98 – $190||$146 – $283||$194 – $411|
|85||$136 – $220||$202 – $328||$269 – $436|
Monthly Premium Range
|45||$27 – $47||$39 – $68||$51 – $89|
|50||$31 – $56||$44 – $83||$58 – $110|
|55||$36 – $61||$52 – $91||$69 – $135|
|60||$44 – $68||$64 – $101||$84 – $149|
|65||$56 – $91||$83 – $135||$110 – $199|
|70||$75 – $106||$110 – $158||$146 – $233|
|75||$100 – $150||$148 – $223||$197 – $328|
|80||$140 – $232||$208 – $346||$276 – $461|
|85||$193 – $312||$288 – $467||$382 – $621|
Health: Health history will hold the most weight when it comes to price. This is because the more complex your parent’s medical history is, the higher risk it is for the carriers to insure.
Age: The older the applicant is, the more it is going to cost. These prices are locked in for life, so the younger your parent is when taking out a policy, the less will be spent each month. For example, someone over 80 will pay more for coverage than someone over 70.
Gender: Insurance for your father is going to be more than for your mother. This comes down to statistics. The life expectancy of a woman is four years longer than that of a man, so women statistically will be less of a risk to insure through the provider’s lens.
Policy Amount: The more coverage that is taken out, will increase the monthly cost. How much money does your parent want you to receive once they pass away? Having an idea of their final wishes and funeral costs will help decide how much coverage to get.
How To Buy Burial Insurance For Parents
There are a few things to know before starting the application process to get final expense insurance for parents.
Choosing an Agent
There are two types of agents to work with, captive or independent.
Captive: This agent sells products from one company and cannot provide other plans that could be a better fit for the applicant. This is problematic because every provider has different underwriting standards. Meaning that if your parent is sick, one company may deny them coverage, and a separate company will have no issue with the same pre-existing condition.
Independent: An independent agent can represent as many insurance companies as they want. A highly rated agent should have the right company and plan for your parent’s medical history.
Choosing an independent agent will save you time and money.
What You Will Need Before You Call
Before contacting an agent, you should have the following information about your mother or father, as this will be required to get an accurate quote and apply for coverage.
- Height & Weight
- Health history (including timeline)
- Desired coverage
- Phone number
- Date of birth
- Who will be the payor
The Application Process
The application consists of four main steps that take roughly 30-minutes to complete from start to finish.
Fact Gathering: The process will start with your agent asking a wide variety of questions to determine which plan is best. Your parent will need to be on the call even if you are the one guiding the conversation.
HIPPA Authorization: The proposed insured must allow the insurance company to check their medical and prescription history. This is used to simply confirm their answers.
Medical Questions: There will be a series of yes or no medical questions that your mom or dad will need to answer honestly.
Signature Process: Your parent must electronically sign the application before your agent can submit it. This is done with an electronic signature through email.
Once the application has been submitted, it usually takes a few business days for the policy to be approved by the carrier and placed in force.
After this, your parent’s policy will be active.
An automatic bank draft is usually the only option providers will accept. However, select life insurance companies will accept social security direct express cards.
Payment schedules can either be billed annually, semi-annually, quarterly, or monthly. Monthly billing is the most common.
The payments must be from one account. If you would like to split the cost with a sibling that will need to be worked out between the family, you can set up only one bank account to make the payments.
Burial Insurance For Parents FAQs
We get many questions in addition to “Can I buy burial insurance for my parents?”, here are a few of the most common.
Can I Get Life Insurance on My Mother Without Her Knowing?
Your mother or father will need to be apart of the process before the application can be submitted. You can help facilitate the application process and even pay the monthly premiums, but your parent will need to participate by signing their name and agreeing to coverage.
My Father is a Veteran: What Help Does the VA Provide for Funerals?
For a non-service-related death, the VA will pay up to $796 for burial costs. Your father would need to qualify for this amount through the VA’s extensive qualification process.
How Fast Does the Money Get Distributed?
Once the claim is filed with the insurance provider, the lump sum payout will be distributed within a matter of days. This is an important component for families who need the cash up front and cannot wait weeks or months to receive the money.
a. Burial insurance for parents is easy to obtain, but the parent must be a part of the application process.
b. To lock in the best possible rate, it is important to take action sooner rather than later, as changes in health often come without warning.
c. The application process is simple to complete and will give you and your family financial peace of mind.
At Willamette Life, we welcome the opportunity to assist you and your parent in finding the coverage that is best suited for them.
Call us at 844-576-0019
I’m the owner and founder of Willamette Life Insurance. Willamette Life specializes in Final Expense Insurance. We compare prices with different insurance carriers while finding the perfect match for your health and budget. This company was started to help educate the public on why Final Expense Insurance could be a great option for them and their family. We strive to be friendly, informative, and always have the client’s best interest as our top priority. Everything in this article is my own professional opinion and experiences I have had during my time in helping clients.