Once seniors reach their golden years, it is a significant milestone in their life. What can be overlooked during this time are the forgotten items on the to-do list. A major financial item that needs to be planned for is funeral expenses.
Funeral 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, burial life insurance is a product that can help seniors plan for these inevitable costs.
Burial Insurance For Seniors Over 70
What is burial insurance? Burial insurance is also known as final expense coverage, funeral insurance, and senior final expense programs.
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.
This product is a type of whole life insurance. Two important factors separate funeral insurance from a traditional whole life plan.
No Medical Exams: Simplified issue underwriting is the process that the application goes through, meaning that there is no medical exam. Seniors will be able to apply over the phone from the comfort of home. All that is required is to answer a series of simple yes or no medical questions. The entire process takes about 30 minutes from start to finish.
Lower Coverage Amounts: The policy amounts typically range from $2,000 – $40,000. This makes the monthly premiums payments much more affordable than larger insurance coverage options but still includes valuable permanent benefits.
Every whole life insurance policy comes with three essential plan features, validating why final expense 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 insurance policies on the market, like term life 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.
- Funeral costs
- Burial and cremation
- Legal expenses
- Medical bills
- Other debt
- Charity donations
- Leaving an inheritance
- Other final expenses
Funeral Insurance Pricing
The premier burial insurance companies can vary greatly in price depending on many factors.
The chart below shows estimated final expense life insurance quotes for seniors over 70.
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.
Non-Smoking Monthly Premiums
|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|
Non-Smoking Monthly Premiums
|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|
How is the Price Calculated?
Four key factors will determine the cost of funeral insurance coverage.
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 monthly rate 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.
What Is The Best Life Insurance For Seniors Over 70?
The best final expense insurance for seniors over 70 is going to vary based on health. Mutual of Omaha, Aetna, and AIG are three top insurance companies that provide coverage for a wide range of health conditions. Please review our list of top burial insurance companies to see how they rate!
For seniors over 70, final expense insurance is a top option because there is no medical exam and simplified issue underwriting. For a simple and affordable monthly payment, your family will receive a guaranteed death benefit.
Funeral Insurance with Restricted Benefits
There are four types of insurance policies within senior final expense programs. Each policy has different price points and structures. Seniors over 70 can qualify for at least one of these four plans. However, only one option has immediate coverage while the other tiers provide partial coverage during the waiting period.
Qualifying for funeral insurance over 70 largely depends on health. Healthy seniors will not be required to have a waiting period. However, every insurance company sets its own underwriting standards, thus, qualifying will vary between providers.
The Plan Tiers of Final Expense Insurance
Level: This plan is designed for the healthiest of applicants. It is the best and only option for final expense insurance with immediate coverage and the lowest monthly premiums.
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: This plan is a viable option for seniors in poor health because guaranteed issue policies ask no medical questions. For those who have chronic or terminal illnesses, this is the plan to use.
Final Expense Insurance Q & A
Here are some of the most frequently asked questions about burial life insurance for 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 is the cost of a headstone, burial plot, or columbarium.
Can I Purchase Final Expense Coverage for a Family Member?
You can get this coverage for a loved one. 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.
Is there Free Burial Insurance?
You may have received promotions in the mail from insurance companies advertising free burial insurance or a state-regulated senior final expense program. 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 most budgets.
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 with access to many insurance companies will help you find the best plan at the lowest price.
Do not settle for a senior life insurance postcard or tv commercial from companies like AARP, Colonial Penn, or Lincoln Heritage. This will not be your best option.
Willamette Life specializes in senior burial insurance and can find a custom plan for you.
Call us at 844-576-0019
a. Funeral insurance for seniors over 70 is both a simple and affordable option to cover the necessary expenses that come with death.
b. There is a plan that can fit anyone’s budget. Policies 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.