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
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 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.
- Males 76.1
- Females 81.1
Listed below are the top 10 leading causes of death in the state.
- Heart Disease
- Chronic Lower Respiratory Disease
- Alzheimer’s Disease
- Chronic Liver Disease/Cirrhosis
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.
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.
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.
- 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.
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.
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!
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.
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.
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.
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
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.