Colorado Burial Insurance: 10 Authoritative Answers To FAQ’s

Colorado Burial Insurance
Colorado Burial Insurance: 10 Authoritative Answers To FAQ’s

In The Centennial State life is glorious, from The San Juan National Forest to Browns Park National Wildlife Refuge, this state has so much beauty to offer.

What is not always on the top of the minds of Coloradans are the bills that come at the end of one’s life.

This is a major financial predicament for family members who are attempting to process the loss of a loved one.

Funeral costs can range over a wide variety of price points depending on several factors.

The average traditional burial service in Colorado is $7,398

The average traditional cremation service in CO is $5,974

Location

Burial

Cremation

Boulder$8,121$6,583
Castle Rock$8,825$7,155
Colorado Springs$6,836$5,559
Denver$7,402$6,060
Fort Collins$7,850$6,295
Grand Junction$6,992$5,495
Greeley$7,933$6,296
Idaho Springs$6,225$5,050
Pueblo$7,451$6,081
Rifle$6,340$5,070
State Average$7,398$5,974

Not included in the price estimates:

  • Cost of Headstone, Monument, or Marker
  • Cemetery Property, Plot of Land, Columbarium, etc.

Fortunately, this is where Burial Insurance products can help!

Colorado button

Colorado Burial Insurance

The average age upon death in the state is 78.5 for males and 82.5 for females.

This is well above the national average lifespan.

National Average:

  • Males 76.1
  • Females 81.1

Listed below are the top 10 leading causes of death in the state.

  1. Cancer
  2. Heart Disease
  3. Accidents
  4. Chronic Lower Respiratory Disease
  5. Stroke
  6. Alzheimer’s Disease
  7. Suicide
  8. Diabetes
  9. Chronic Liver Disease/Cirrhosis
  10. Influenza/Pneumonia

No one knows when their health will start to fail, this makes it even more important that individuals are proactive in creating a financial plan to allow the loved ones left behind to celebrate the life lived and not be burdened will bills.

mountain and trees

10 Authoritative Answers To FAQ’s

1. Burial Insurance: What is this product?

This product is designed for seniors to be able to make an easy and affordable monthly payment and in return, they will receive five plan benefits from the provider.

Guaranteed payout: As long as you make the simple payment each month your beneficiary will be guaranteed to receive a financial distribution.

Quick distribution: When a loved one passes away the final arrangements need to start taking place rapidly. It is important that the payout comes in a matter of days rather than weeks or even months later.

Once the provider receives the death certificate the beneficiary can expect to be paid in a few days.

Coverage lock: The coverage amount will never decrease or expire, this will give the beneficiary peace of mind knowing the financial payout will be there when needed.

Price lock: The price will never raise, this is one of the most important features of the plan for the millions of seniors who are on a fixed income. Knowing that the price will never raise provides invaluable security.

Builds cash value over time: For every payment made a small portion will go towards the cash value. Over time this will allow the policy owner to borrow against the plan if needed.

Cash value

2. Can the beneficiary use the payment for whatever they want?

It is important that your beneficiary knows what your final wishes. Beneficiaries are not tied to a specific set of items that the payout needs to be used for.

However, there are common items purchased by beneficiaries using this money.

  • Cremation
  • Memorial/Celebration of Life
  • Credit Cards
  • Charity Donations
  • Leaving an Inheritance
  • Medical Bills
  • Legal Expenses
  • Remaining Balance on a Mortgage
  • Remaining Car Loan Balances
  • Post-Mortem Expenses
  • Other End-of-Life Expenses

3. What is better: Captive or Independent Agent?

Both of these agents are able to secure you a policy, but this is where things drastically change.

Captive: This agent type is only allowed to represent one carrier. This will cause issues for applicants behind the scenes that they might not even know about.

Every carrier has different price points and health niches that they are willing to take on. For example, one company may deny someone who has had a heart attack and another company will approve this condition.

The same goes for the price of the product, each company determines its price point which can swing greatly depending on what company is used.

With a captive agent, they are attempting to put together a puzzle with only a few pieces.

four puzzle pieces

Independent: This agent represents as many companies as they choose, this will allow the independent agent to have an appropriate product for any medical condition that the applicant may have.

This agent has all the puzzle pieces and can help you put the picture together!

stick figure person walking with puzzle piece

4. What plan can I get approved for?

The quickest and most accurate way to understand your plan options is by contacting an independent agent. They will gather information about your health history and find the best plan for you.

Prior to contacting the agent, it is best to familiarize yourself with the four types of plans.

  • Level: Great Health
  • Graded: Average Health
  • Modified: Past Health Concerns
  • Guaranteed Issue: Major Medical Issues

Every applicant will have the opportunity to qualify for at least one of these products.

5. What is the age range for coverage?

The range typically goes from 50 to 85 years old however you can find some carriers that will provide coverage much younger than this and then on the opposite side of the spectrum all the way until 90 years old.

This is just speaking on initial coverage, as explained earlier coverage never expires.

6. How is the price determined?

There are three key factors when determining the price.

Heath: Your health will have a major effect on the price paid each month. Each carrier has a different risk tolerance and the agent’s job is to find which company will accept your medical condition while giving you a fair price.

Age: Your initial age when you receive coverage will be the price that is paid moving forward. The older you are when you receive initial coverage the higher the price point will be.

Do not put off purchasing this product any longer, the more time you wait the higher your price will be.

Gender: Males and females pay a different price for coverage. Carriers know females tend to live longer and this allows them to charge less. Males tend to live shorter lives and need to pay more due to the higher risk the provider is taking on.

health age gender

 7. What is a waiting period?

This is a time restriction that a carrier places on higher-risk cases that they take on.

This restriction period typically lasts two years from when the policy was taken out.

If the insured passes away prior to the waiting period ending then the beneficiary will receive a portion of the coverage amount depending on the policy structure.

If the insured dies after the waiting period has passed then the beneficiary will be awarded the entire coverage amount.

8. First-day coverage: What does this mean?

Day one coverage is awarded to those who are in good to great health.

Each carrier has different mild health concerns that they will cover with immediate coverage, but you need an independent agent to find which carrier will provide the coverage you need.

Not every person will be approved for first-day coverage, this is due to major health concerns they might have.

9. Three product names: What is the difference?

The three names are used by providers to market and sell the products.

Three names for this plan type

These names mean exactly the same thing.

10. My family member needs a policy: Can I purchase it for them?

You are able to purchase a policy for them and make the payments however there is one major rule that needs to be followed.

The applicant who will be receiving the coverage will need to sign their name and be a willing participant.

You are unable to buy coverage on them without their permission.

6 Foolproof Plans

6 Foolproof Plans

#1 Mutual Of Omaha – Living Promise (Level)Mutual Of Omaha Logo

This Living Promise plan is an immediate coverage plan that is top in the industry. Offering low premiums and living benefits this is a can’t miss option.

If you are in great health this will be your best plan choice in the state.

Quick Plan Facts

  • Available ages: 45-85
  • Coverage: $2,000-$40,000
  • Immediate coverage

Visit the blog section under the main menu to read a full review of this plan.

Quotes

Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45$27$39$51
50$31$44$58
55$36$52$69
60$44$64$84
65$56$83$110
70$75$110$146
75$100$148$197
80$140$208$276
85$193$288$382
Female

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45$23$32$42
50$24$35$45
55$28$40$52
60$33$48$63
65$41$60$79
70$53$78$103
75$72$107$142
80$98$146$194
85$136$202$269

#2 Foresters Financial – PlanRight (Preferred)Foresters Financial Logo black and white

The PlanRight Preferred coverage option offers immediate protection and extremely low premiums.

The unique aspect of Foresters Financial is that they are a nonprofit Fraternal Benefits Organization that allows them to pass savings along to its members.

Policyholders will receive additional discounts on services like dental vision and hearing.

If you are in good health this is a great plan option.

Quick Plan Facts

  • Available ages: 50-85
  • Coverage: $5,000-$35,000
  • Immediate coverage

Visit the blog section under the main menu to read further about this plan.

Quotes

Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45NANANA
50$32$46$61
55$37$54$71
60$45$66$87
65$55$81$106
70$71$104$138
75$103$152$202
80$147$219$290
85$201$300NA
Female

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45NANANA
50$26$38$49
55$31$45$59
60$35$52$68
65$41$60$79
70$52$76$101
75$75$111$147
80$111$165$219
85$166$242NA

#3 Royal Neighbors of America – SIWL (Level)Royal Neighbors Logo black and white

The Level plan from Royal Neighbors offers immediate coverage and will actually take on slightly higher health risks like diabetes.

With affordable premiums and just nine medical questions asked this is a great plan for anyone who has had past medical concerns that were mild.

Quick plan facts

  • Available ages: 50-75
  • Coverage: $7,000-$30,000
  • Immediate coverage

Visit the blog section under the main menu to read more about this plan.

Quotes

Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45NANANA
50$40$58$77
55$46$68$90
60$50$74$98
65$59$87$115
70$75$111$147
75$110$164$218
80NANANA
85NANANA
Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45NANANA
50$34$49$65
55$38$55$72
60$38$56$74
65$45$66$87
70$56$82$109
75$80$118$157
80NANANA
85NANANA

#4 Sentinel Security Life – New Vantage II (Graded)Sentinel Security Life logo black and white

Sentinel Security Life has a wonderful Graded plan option.

There is a waiting period that comes with this policy that offers one of the best plan structures you will find for higher risk cases.

Use this plan if you have a more complicated medical history.

Waiting period payout structure

  • Death Benefit in year 1 – 30% of the face amount
  • Death Benefit in year 2 – 70% of the face amount
  • Death Benefit in year 3 and beyond – 100% of the face amount

Quick Plan Facts

  • Age eligibility: 45-85
  • Coverage amount: $1,000-$20,000
  • 2-year waiting period

Quotes

Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45$31$45$60
50$38$56$73
55$50$74$97
60$65$96$127
65$84$124$165
70$110$163$216
75$165$245$326
80$235$351$467
85$326$488NA
Female

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45$26$37$49
50$32$46$61
55$38$55$73
60$48$70$93
65$61$90$119
70$80$119$157
75$121$180$238
80$173$258$343
85$268$401NA

#5 Guarantee Trust Life – Heritage (Graded)Black and white GTL logo

The Heritage plan from GTL is a great option for those with major medical issues.

This carrier will only ask five medical questions and the majority of individuals will be accepted.

Due to the favorable underwriting comes a waiting period of two years.

Waiting period payout details:

  • Death Benefit in year 1 – paid premiums plus 5%
  • Death Benefit in year 2 – 50% of the face amount
  • Death Benefit in year 3 and beyond – 100% of the face amount

Quick Plan Facts

  • Available ages: 40-90
  • Coverage: $2,500-$25,000
  • 2-year waiting period

Visit the blog section to read further about this great plan.

Quotes

Male

Monthly Premiums

Age$10,000$15,000$20,000
45$47$68$89
50$51$74$97
55$55$80$106
60$67$99$131
65$80$118$156
70$102$150$199
75$139$206$274
80$232$346$461
85$300$449$597
Female

Monthly Premiums

Age$10,000$15,000$20,000
45$34$49$64
50$36$52$67
55$42$62$81
60$51$74$97
65$60$88$116
70$73$108$142
75$102$151$201
80$165$245$326
85$191$284$377

#6 AIG (Guaranteed Issue)

This is a no-questions-asked plan, meaning almost everyone who applies for it will be accepted.

The only reason you would not be accepted is if you were in a coma or other nonresponsive state. This product comes with an industry-standard two-year waiting period.Black and white AIG logo

If you do need to use this plan type we recommend using AIG. They have fair premiums and living benefits that are included with the plan.

2-Year Waiting Period Payout Details

  • Months 0-24: All premiums paid +10% are given to the beneficiary
  • Months 24+: 100% of the face amount will be paid out of the beneficiary

Quick Plan Facts

  • Available ages: 50-80
  • Coverage: $5,000-$25,000
  • 2-year waiting period

Is this Guaranteed Issue plan from AIG right for me?

Only use this plan if you have one of the following medical conditions.

  • AIDS, ARC, HIV
  • On Hospice
  • Diagnosed with a terminal illness
  • Confined to hospital, nursing home, mental care, or long term care facility
  • Bedridden
  • Currently have or receiving treatment for invasive cancer
  • In the past 24 months diagnosed with: Memory loss, Alzheimer’s or Dementia, receiving Kidney Dialysis, 24-hour Continuous Oxygen use, Implanted Difibulator, or Organ Transplant

Quotes

Male

Monthly Premiums

Age$10,000$15,000$20,000
50$53$79$104
55$58$80$128
60$65$96$142
65$86$128$189
70$101$150$221
75$142$212$331
80$206$309$416
85NANANA
Female

Monthly Premiums

Age$10,000$15,000$20,000
50$37$54$76
55$44$65$98
60$51$76$113
65$63$94$139
70$76$113$168
75$110$164$241
80$180$269$393
85NANANA

Final Thoughts

a. Colorado Burial Insurance is a great option for a simple and easy way to leave a financial lump sum for your family members.

b. If you are in good health, your best plan option will be Mutual of Omaha’s Living Promise plan.

c. Work with an independent agent like Willamette Life to find the best plan for your specific health history.

Call us at 844-576-0019

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