Once seniors reach their golden years, it is a significant milestone in their life. What can be overlooked during these years are the forgotten items on the to-do list. A major financial item that needs to be planned for is funeral expenses.
These costs can be anywhere from $8,000 – $12,000. This is a major financial shock for loved ones attempting to grieve and honor the deceased’s life.
Fortunately, there is a product that can help seniors plan for these inevitable costs.
Burial Insurance For Seniors Over 70: The Basics
For a simple and affordable monthly payment, burial life insurance can provide much-needed financial support to the family members left behind. Specifically designed for senior citizens, there is a plan for every person who applies for burial insurance coverage.
Burial insurance is also referred to as funeral or final expense insurance.
This product is a type of whole life insurance. Two important factors separate burial insurance from a traditional whole life plan.
No Medical Exams: This process is known as Simplified Issue Underwriting, there are no medical exams, and you will be able to apply over the phone from the comfort of your own home. All that is required is for you to answer a series of simple yes or no medical questions. The entire process takes approximately 30 minutes from start to finish.
Lower Coverage Amounts: The policy amounts typically range from $2,000 – $40,000. This makes the policy holder’s monthly premiums payments much more affordable than larger insurance coverage options but still includes valuable permanent benefits.
Each whole life policy comes with three essential plan features validating why burial insurance is worth it.
Price Never Increases: Once you take out a policy, the price is locked in and will never increase. This is important for a senior citizen on a fixed income, helping with peace of mind knowing there will never be a random price increase. This plan gives you the assurance that your price is locked in and allows you to budget with complete certainty.
Coverage Never Terminates: Once you take out funeral expense coverage, the amount will never decrease or terminate. This product is permanent and will be there for your family when it is needed the most. Other plans on the market like term life insurance from AARP are marketed to the elderly and will terminate, but whole life never will.
Builds Cash Value: This plan will build a cash value over time. For each payment made, a portion will be set aside that the policyholder can borrow from in future years.
What can the Funeral Insurance Death Benefit be Used for?
There is no mandate on what the policy must be used for. However, there are several traditional items the beneficiary commonly uses the money for.
- Legal Expenses
- Medical Bills
- Credit Cards
- Charity Donations
- Leaving an Inheritance
- Remaining Balance on a Mortgage
- Post-Mortem Expenses
- Remaining Car Loan Balances
- Other Final Expenses
Funeral Insurance Pricing
The premier burial insurance companies can vary greatly in price depending on many factors.
The chart below shows insurance quotes seniors can expect to pay each month depending on age and health history.
The more complex the applicant’s medical history, the higher price they can expect the life insurance quotes to be. The more simple medical history someone has, the less they can expect to pay.
|70||$52 – $84||$76 – $124||$101 – $168|
|71||$56 – $88||$83 – $132||$109 – $194|
|72||$58 – $96||$86 – $143||$114 – $200|
|73||$64 – $103||$94 – $154||$124 – $226|
|74||$68 – $110||$100 – $164||$132 – $241|
|75||$72 – $116||$107 – $173||$142 – $254|
|76||$78 – $136||$116 – $202||$153 – $276|
|77||$84 – $148||$124 – $222||$164 – $325|
|78||$88 – $155||$131 – $231||$174 – $339|
|70||$71 – $102||$104 – $158||$138 – $221|
|71||$79 – $116||$117 – $173||$154 – $254|
|72||$84 – $119||$124 – $187||$165 – $275|
|73||$89 – $134||$133 – $200||$176 – $294|
|74||$95 – $143||$141 – $213||$187 – $312|
|75||$100 – $150||$148 – $223||$197 – $328|
|76||$107 – $166||$159 – $261||$211 – $363|
|77||$114 – $199||$170 – $298||$225 – $414|
|78||$122 – $206||$182 – $308||$241 – $450|
*These are non-smoking rates. Most insurance companies classify non-smoking as not using any form of nicotine or tobacco in the past 12 months.
How is the Price Calculated?
Four key factors will determine the price.
Health: The applicant’s health will carry the most weight when looking at the price. The more unhealthy a medical background the applicant has, the higher risk the person is for the provider to cover. With higher risk comes higher prices.
Age: Once the applicant is approved for coverage, the price will never change. However, the price will increase each year that goes by without securing a policy. Waiting to get protection is going to increase life insurance premiums drastically.
Gender: On average, females live four years longer than males, which means men are at a higher risk to insure. Women will pay lower insurance rates than men.
Policy Amount: The more life insurance coverage taken out, the more seniors can expect to pay.
Waiting Period Vs. No Waiting Period
There are four types of plans. Each has different price points and plan structures. Seniors will be able to qualify for one of these four plans, depending on their health.
Final Expense Insurance Plan Tiers
Level: This plan is designed for the healthiest of applicants. It is the best option if the proposed insured can qualify for the lowest monthly premiums and immediate coverage.
Graded: With a favorable two-year waiting period, this plan is right for those who may have struggled with their health in the past. Included is lenient underwriting that will allow for more serious medical conditions to be approved.
Modified: A two-year waiting period is included with this plan. It has similar underwriting standards as a graded plan but not as favorable of a payout structure. In some cases, a highly rated guaranteed issue plan will have the same policy structure as a modified plan but with lower premiums.
Guaranteed Issue: Asking no medical questions and approving almost every senior that applies makes this plan a viable option. For those who have chronic or terminal illnesses, this is the plan to use. Also, anyone who does not want to answer medical questions can use this plan. It is always in the applicant’s best interest to go through the underwriting process with health questions.
Questions and Answers
Here are some of the most frequently asked questions about burial life insurance seniors over 70.
What is the Cost of a Traditional Burial Service?
The average price for a traditional burial service with viewing is $7,643 or $6,280 with cremation. There are many decisions made throughout the process that will dictate this price.
Not included in these price estimates:
- Cost of Headstone, Monument, or Marker
- Cemetery Property, Plot of Land, Columbarium, etc.
Can I Purchase Final Expense Coverage for a Family Member?
Yes, you can however, there are several steps to follow to make sure the contract is valid. This includes your family member being involved with the process and agreeing to coverage. Also, because they are entering into a legal contract, the proposed insured will need to have the mental capacity, so they understand what is being agreed to
You cannot take out coverage on someone without their approval.
Does Social Security Help with Funeral Costs?
Social Security will give a death benefit up to $255. This is not in the ballpark of what is needed to lay someone to rest honorably. Do not use this option to cover your funeral costs, instead use burial insurance for seniors over 70.
What is The Best Life Insurance for Seniors Over 70?
With no medical exams and simplified issue underwriting, final expense life insurance is a top option for the elderly. For a simple and affordable monthly payment, your family will receive a guaranteed death benefit.
Is there Free Burial Insurance?
You may have received promotions in the mail from insurance companies advertising free burial insurance. Simply put, this product is not free, and that offer does not exist. There are, however, very affordable final expense insurance options that can fit any budget.
What Funeral Insurance Plan can I Qualify for?
Every provider has a different underwriting standard. This means one insurance plan may accept a specific medical condition, and a different insurance plan will deny the applicant with the same condition. Working with an agent that has access to many companies will help you find the best plan at the lowest price.
Do not settle for a postcard or tv commercial from AARP, Lincoln Heritage, or other insurance companies for your coverage needs. This will surely not be your best option.
Willamette Life specializes in burial insurance and comparing plans for seniors.
Call us at 844-576-0019 for instant funeral insurance quotes.
a. Burial Insurance for seniors over 70 is both a simple and affordable option to leave behind your loved ones’ financial resources.
b. There is a plan that can fit anyone’s budget. Plans with and without a waiting period are available depending on your medical history.
c. Work with an independent agent to find the best burial plan at the lowest possible price.
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.