Once reaching their 60’s, seniors start thinking about the next steps of life. Retirement, grandchildren’s future, and the legacy that will be left behind.
The majority of seniors 60 and over do not have an excess amount of money sitting in a bank account to cover their final expenses or leave a financial gift to their children, grandchildren, or loved ones.
Fortunately, burial insurance plans can help with these final costs.
Burial Insurance For Seniors Over 60: Essential Details
Having a financial plan once individuals reach their 60’s is very important for their family’s financial future. Final expenses, on average, can cost between $8,000 – $12,000. This can leave a major burden for loved ones if not prepared.
If you are in your 60’s this product is specifically designed for you. Regardless of your health, there will be a plan that you will qualify for. With a simple and affordable monthly payment, you will receive peace of mind knowing that you will not leave this financial burden behind.
This product is a type of whole life insurance. Two key factors separate senior burial programs from larger traditional life policies.
Simplified Issue Underwriting: This underwriting process requires no medical exams and can be completed from the comfort of your own home. This process will take roughly 30 minutes to apply for coverage and will require the applicant to answer a series of yes or no medical questions.
Affordable Coverage: The policy face amounts, also known as a death benefit, are much lower than a traditional whole life plan. Coverage ranges from $2,000 – $40,000, making the monthly premium much more affordable while still offering valuable permanent benefits. In general, life insurance rates are much higher for larger policies.
Three permanent benefits come with all whole life coverage, which includes senior burial insurance.
Price Lock: The insurance company will never increase your monthly premiums. Whether it is year one or year thirty of the policy, your price does not change. This is extremely important for senior citizens on a fixed income who need to know their monthly expenses down to the penny.
Coverage Lock: The coverage will never expire, decrease, or terminate. For families’ financial security, it is key that the coverage is active when the insured passes away. Senior life insurance policies always will be.
Builds Cash Value: For each payment made, a portion will go towards the cash value. Over time this amount will accumulate and provide the opportunity for the insured senior to be able to borrow from it.
What can the Death Benefit be Used for?
Senior burial programs were designed as an affordable and flexible way for people to prepare for these inevitable costs. Having said that, there are no rules or regulations that restrict what burial insurance covers. You’ll want to make sure that you list a trustworthy recipient with the insurance company to carry out your final wishes.
The typical items a beneficiary uses the death benefit for vary.
- Leaving an Inheritance
- Cremation costs
- Legal Expenses
- Medical Bills
- Credit Cards
- Charity Donations
- Remaining Balance on a Mortgage
- Post-Mortem Expenses
- Remaining Car Loan Balances
- Other Final Expense Bills
What Does it Cost?
Typically the healthier you are, the less your insurance quotes will be. The more complex your medical history, the more you will pay. This chart shows price ranges from the top burial insurance companies.
|60||$33 – $54||$48 – $80||$63 – $119|
|61||$35 – $57||$50 – $85||$66 – $126|
|62||$36 – $60||$52 – $89||$69 – $133|
|63||$38 – $63||$55 – $93||$72 – $138|
|64||$39 – $65||$57 – $96||$76 – $143|
|65||$41 – $66||$60 – $99||$79 – $146|
|66||$43 – $70||$64 – $104||$84 – $154|
|67||$46 – $73||$67 – $108||$89 – $160|
|68||$48 – $75||$71 – $112||$93 – $166|
|60||$44 – $68||$64 – $101||$84 – $149|
|61||$46 – $73||$68 – $108||$90 – $160|
|62||$49 – $78||$72 – $115||$95 – $171|
|63||$51 – $82||$75 – $122||$99 – $181|
|64||$54 – $87||$79 – $129||$104 – $190|
|65||$56 – $91||$83 – $135||$110 – $199|
|66||$60 – $95||$88 – $141||$117 – $208|
|67||$63 – $98||$93 – $146||$123 – $215|
|68||$67 – $101||$99 – $150||$130 – $222|
*These are non-smoking rates. Most life insurance companies classify non-smoking as not using any form of nicotine or tobacco in the past 12 months.
How is the Price Calculated?
Each insurance company determines its pricing through four main factors.
Health: The medical history of the senior will heavily impact the monthly premiums. The more complex the medical history, the higher risk it is for the carrier to provide coverage. Higher risk means higher cost.
Age: Once you secure coverage, your price will never change. However, the longer you wait and the older you get, the higher your price will be. An applicant in their 60’s looking into funeral insurance will pay less than elderly seniors later in life.
Gender: Statistically, females live four years longer than males do. This makes females a lower risk to insure, meaning they will pay less for final expense coverage.
Policy Amount: The more funeral coverage taken out, the more seniors can expect to pay in life insurance rates.
Waiting Period Vs. Immediate Coverage
There are four different plan tiers, and these different plans come with varying policy structures. Fortunately, every applicant will qualify for at least one of these plan options, regardless of your medical history.
Level: This final expense life plan is designated for the healthiest of applicants and is the only tier that has no waiting period. If you can qualify for this plan, you will receive the lowest burial life insurance rates with immediate coverage.
Graded: Offering lenient underwriting the graded plan is meant for individuals with a health history that may cause concern for the provider. With more lenient underwriting comes partial coverage within the first two years. During this 2-year waiting period, the death benefit gradually increases each year, with full coverage implemented after year two.
Modified: This funeral insurance plan is a hybrid between a graded and guaranteed issue policy. Unfortunately, it is not extremely useful due to the two-year waiting period coupled with some of the highest premiums on the market. If this is the only plan your agent can qualify you for, the best option might be to move forward with a highly rated and lower-cost guaranteed issue plan instead.
Guaranteed Issue: Asking no medical questions, this plan should be intended for individuals with terminal illnesses or those who do not want to answer medical questions. It is always in the senior citizen’s best interest to go through the medical question process. Due to the non-existent underwriting, a minimum two-year waiting period is always assessed with this plan.
Frequently Asked Questions
Here are some of the most common questions a senior citizen will ask when going through the application process.
What is the Cost of a Traditional Funeral Service?
In the United States, the average cost for a traditional burial service with viewing is $7,643 or $6,280 for cremation. This cost estimate can differ depending on the many options selected along the way.
Not included in these price estimates:
- Cost of Headstone, Monument, or Marker
- Cemetery Property, Plot of Land, Columbarium, etc.
What is the Best Insurance for Senior Citizens?
If families have no money set aside for final expenses, funeral insurance is essential. For a simple and affordable monthly payment, families will be assured they have the resources needed to celebrate the deceased’s life.
Can I Purchase for Someone Else?
Yes, you can. However, there are a few steps that need to be followed for the contract to be valid. There needs to be insurable interest, and the applicant must be a part of the process. This includes the proposed insured signing their name and agreeing to coverage.
Also, the applicant will need to be in a mental state in which they understand what they are agreeing to.
Does Social Security Give a Death Benefit?
Social Security will give up to a $255 death benefit. This is nowhere near what is needed financially when it comes to funeral expenses.
Do not use this option as your only financial plan to cover these costs.
Is there Free Funeral Insurance?
Free funeral insurance does not exist. You may be like many other seniors and have received an offer through the mail from a company like AARP, Lincoln Heritage, or a generic card for elderly seniors over 60. This promotional material is often just a teaser to get your attention, but there is always a catch.
What Type of Life Insurance is Best for a 60 Year Old?
Permanent whole life insurance policies are designed for final expenses and will be the top option for seniors. This product comes with no medical exam, locked-in coverage, and a guarantee that your price will never increase.
How do I See What Coverage I Can Qualify for?
The first step is by working with an agent that has access to many different plans. Each insurance company has different underwriting standards. This means one company may deny you for a past medical condition, and another company will approve you for coverage.
Work with Willamette Life to find the best final expense insurance for seniors.
Call us at 844-576-0019
a. Finding burial insurance for seniors over 60 is simple and easy. This product is specifically designed for this age group. With an affordable monthly payment, your family will be taken care of after you have left them.
b. Depending on your health, age, gender, and the coverage amount, the plan and price you can qualify for will be unique to you.
c. Work with an agent that has access to many different plans. This will allow you to receive the lowest price and best plan structure for your specific needs.
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.