Everyone knows that life insurance is a popular, useful, and a needed financial tool to protect loved ones from financial hardship.
The most overlooked expense is the cost associated with the end of one’s life.
The price for a service and burial can be between $8,000 – $12,000. This can leave families in a very vulnerable situation. Fortunately, burial life insurance plans are designed to handle these expenses.
The Basics Of Burial Life Insurance For Seniors
This product is permanent whole life protection meant for the costs at the end of a senior’s life. Two benefits make burial life insurance unique compared to other whole life insurance options.
No Medical Exams: The senior applicant will never be asked to take a health exam or go to a doctor’s office. The application process can be completed from the comfort of your own home over the telephone.
Affordable Coverage: The coverage amount will be between $2,000 – $40,000. This allows your monthly payments to stay affordable but still includes the great permanent benefits that a larger plan offers.
Three key features come with every whole life policy that other products do not always promise.
Price Lock: The price will never increase. Knowing the costs down to the penny for those on a fixed income is very important for monthly budgeting. This plan has no surprise price increases.
Coverage Lock: Your insurance coverage will never decrease or terminate. When purchasing a plan meant for your end-of-life expenses, it is key to know that your policy will be there when it is needed. This plan will always be active as long as your monthly premium is paid.
Builds Cash Value: For each payment made, a portion will go towards the cash value. Over time this amount will grow and can be borrowed against in future years.
What can the Distribution Cover?
The payout can be used for anything the beneficiary deems necessary. There are no rules or regulations that require there to be a specific set of items purchased.
However, there is a list of typical items bought with the distribution.
- Burial Costs
- Leaving an Inheritance
- Legal Expenses
- Remaining Balance on a Mortgage
- Post-Mortem Expenses
- Medical Bills
- Credit Cards
- Charity Donations
- Remaining Car Loan Balances
- Other End-of-Life Expenses
Supreme burial insurance companies will have the distribution delivered within days after receiving the death certificate.
Types of Coverage
There are four plan tiers within burial insurance for seniors. To qualify, each tier requires a different set of medical standards. Each carrier gets to set its own qualifying standards and pricing.
Level: With immediate coverage, this option is reserved for the healthiest of seniors. Awarding the lowest premiums with no waiting period, this plan is the best option if you can qualify.
Graded: This policy tier has favorable underwriting, which comes with more lenient medical questions. Due to the friendly medical questions, the carrier will implement a two-year waiting period. The payout increases each year, and after the 2nd year, the insured will be eligible for the full death benefit.
Modified: Also, a plan with a waiting period, this product is not as friendly of a price point or payout structure. There is typically a two-year waiting period payout. If this is your only option, you will almost always be better off using a guaranteed acceptance plan that offers a more economical price point.
Guaranteed Issue: Asking no medical questions, this product is best for those with chronic or terminal illnesses or someone who does not want to answer any health questions.
The Cost Of Burial Insurance For Seniors
The price can vary drastically depending on a wide variety of variables. Several factors will dictate how much this senior burial program costs.
How is the Price Determined?
Four key factors dictate the price someone will pay.
Health: Your health is the most heavily looked at factor regarding the price you pay. The higher risk medical history you have, the more risk the carrier will be taking on, which consequently will raise the monthly premium the applicant will need to pay.
Age: Once you take out a policy, the price will never increase, but the price will rise each year that you wait to take out your policy. An applicant over 80 will pay more for initial coverage than a senior in their 70’s.
Gender: On average, females live four years longer than males do. This makes men a higher risk gender to insure. Higher risk means higher prices for males.
Policy Amount: The more coverage you take out, the more you can expect to pay. Fortunately, this policy provides coverage amounts designed for final life costs.
Burial Expense Insurance Quotes
The healthier the senior citizen is, the less they can expect to pay. The more medical concerns they have, the higher the price will be.
Below is the monthly premium price range based on age, policy amount, and gender.
To get free life insurance quotes for your specific age and the coverage amount, fill out the instant quote calculator on this page. This will show you multiple burial life insurance quotes.
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|
Other Burial Planning Tools
Other financial vehicles will help you plan for the end of your life and the expenses that come with it. However, these are not perfect options, and there is a risk that comes with each.
Traditional Whole Life
This option is very popular for individuals looking for life coverage on a larger scale.
Whole Life Benefits: This type of insurance policy comes with a coverage lock and price lock and also builds cash value over time.
Larger Policy Amounts: Coverage amounts typically start at $50,000 – $100,000 and can rise all the way up into the millions. This will make your monthly premium much more expensive.
Tax Benefits: Your financial advisor may suggest using this plan to shelter wealth or for tax purposes.
Term Life Insurance
Term insurance provides coverage that can be used for the expenses that come at the end of one’s life. However, this plan type can be problematic and may not be worth it for many seniors.
Coverage Expires: At some point, your coverage will expire. For example, if you take out a 20-year policy at the age of 60, your coverage will expire when you reach 80. If you outlive your insurance plan, this can leave your family in a crippled financial position.
Price Is Cheaper: Term insurance will expire but provides coverage at a lower monthly cost. Keep in mind that certain plans like AARP actually increase the monthly price as you age.
Does Not Build Cash Value: This plan does not build any cash value, which essentially means you are paying a monthly fee to rent temporary coverage.
Pre Need Insurance
This type of insurance coverage is taken out directly with the mortuary.
Beneficiary is the Mortuary: Instead of the payout going to your beneficiary of choice, the money will go directly to the mortuary. This restricts the financial options your loved ones will have.
Covers Specific Expenses: The distribution will only cover costs associated with the mortuary. There is almost a guarantee that there will be a final electric bill or a car payment that needs to be made, with this plan type you will need to find these funds elsewhere.
Only One Mortuary: When taking out this policy, you will be working with one business only. What happens if the company is no longer operating in future years or decide you would like to change your final arrangements. These can be problematic because there is no flexibility.
Savings or Investment Account
A savings or investment account may seem like a great option, but there is still risk involved. This is likely not the best option for seniors over 70, but it could be the only option for seniors over 90.
Unexpectedly Passing Away: No one knows when our health will decline. Saving and investing can be a noble idea, but life is unpredictable. If you pass away sooner than expected, your family can be left with bills to pay on your behalf.
Investment Volatility: Placing your money in the market can be a way to save for these costs, but the market has a history of being unstable. You never know if your portfolio will perform the way you need it to.
Inflation: The US dollar has a history of inflation. It is hard to tell if your savings will outpace the rate of inflation.
Questions To Think About
What Does the Average Burial Service Cost?
The average cost for a traditional burial service with viewing is $7,643 or $6,280 for cremation in the USA. This cost estimate can differ depending on many variables that are selected throughout the process.
Not included in these price estimates is the cost of monument and cemetery property.
Does Social Security have a Senior Burial Insurance Program?
Social Security will award a death benefit up to $255 to the surviving beneficiary. This is nowhere near what is needed to celebrate the life of a senior citizen properly. Do not use this as your “insurance plan” to cover burial costs.
a. Burial life insurance for seniors has a few basic plan benefits to be mindful of. This product never decreases in coverage and never increases in monthly premium prices. Also, over time, a cash value accumulates that can be borrowed against.
b. No matter your health, gender, or age, a policy will fit your needs and budget. Get free insurance quotes by filling out the form on this page.
c. Other products on the market can help you plan for costs associated with death. However, each has some drawbacks to be aware of.
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.