Idaho Burial Insurance: 9 Definitive Answers To FAQ’s
There is so much to be thankful for in The Gem State. From Kaniksu National Forest down to North Beach State Park and everywhere between, Idahoans are truly blessed.
The one item that is easy to forget about is the bills that come at the end of one’s life.
This is a major financial burden for family members to take on during a time of grief and processing what has just happened.
Funeral costs can range over a wide variety of price points depending on several factors.
The average traditional burial service in Idaho is $7,129
The average traditional cremation service in ID is $5,850
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 policies can ease this monetary burden.
Idaho Burial Insurance
The average age of death in the state is 77.4 for males and 81.3 for females.
This is slightly above the national average.
- 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
- Parkinson’s Disease
Everyone knows a family member, loved one, coworker, or friend who has been affected by one of these conditions.
The truth is none of us know when our health will decline, the most proactive thing anyone can do is create a financial plan that leaves family members with the financial support they need.
9 Definitive Answers To FAQ’s
1. Burial Insurance: Things to know?
This is a Whole Life product so you will receive these five benefits after obtaining a policy.
Guaranteed payout amount: As long as the policy owner continues to pay the monthly premium the provider will pay the beneficiary a lump-sum amount once the insured passes away.
Speedy payout process: Some products take weeks or even months to distribute the funds, but with this product, the beneficiary will have the payment in a matter of days.
The carrier will require a copy of the death certificate prior to distributing the funds.
Price is locked in: The price will never increase. Any senior on a fixed income knows how important this feature is. Understanding how much you will be paying and that there will not be rate hikes is an incredibly valuable aspect.
Coverage will never expire: When purchasing a product meant for the end of your life, it is very important that the financial payoff is there for your family during this time of need.
There are other products on the market that expire or lower their coverage amount, fortunately, this product does not!
Builds cash value: A portion of each payment you make will go towards the cash value, overtime this value will continue to build allowing for you to borrow from it in the future.
This money will need to be paid back, but it is an option if needed.
The major difference between this product and a traditional whole life policy is the amount of coverage offered.
This plan has a much smaller face amount which allows the payment to be substantially lower and more reasonable while still receiving the great benefits a traditional policy offers.
2. Payout: What can it be used for?
The policy has no regulations on what the payout needs to be used for, however, there is a list of things that beneficiaries typically use the funds for.
- Memorial/Celebration of Life
- Credit Cards
- Charity Donations
- Leaving an Inheritance
- Medical Bills
- Remaining Balance on a Mortgage
- Legal Expenses
- Remaining Car Loan Balances
- Post-Mortem Expenses
- Other End-of-Life Expenses
3. Captive or Independent Agent: Who should I use?
Both of these agents are able to secure respectable coverage for you, however, the way they go about obtaining the coverage is vastly different.
A captive agent is only allowed to represent one carrier, this means that even if there are better options on the market this agent will be forced to sell the inferior product that they represent.
This may not seem like a big deal however when you pull the curtain back and see the interworkings of how a policy gets issued, it should cause a red flag.
Each carrier has different underwriting standards. This means that someone with a past medical situation like kidney dialysis could qualify for one company but be denied by another.
The underwriting is so specialized from carrier to carrier. Choosing an agent that has access to one single carrier is like only having a hammer but really a drill is needed to finish the job right.
The same can be said for the price of a policy. There are companies that offer the same type of product but the price point can be greatly different.
Again, this is because every carrier has different rules, regulations, and risk tolerances.
This agent is not tied to one single carrier. What this means is that the agent works for themselves and can add or subtract whichever carriers they choose to represent.
For example, Willamette Life is an independent agency, we represent many carriers and have a tool in our toolbox for every medical condition.
Always choose to work with an independent agent as they have access to many more options which means a much higher probability of finding the premier plan for you.
4. What is the best plan for me?
Every person will have a plan that’s right for them, the simplest and most accurate way to find your best plan is to work with a highly rated independent agent. Prior to contacting a professional, it is a great idea to educate yourself on the four different plan types.
- Level: Great Health
- Graded: Average Health
- Modified: Past Health Concerns
- Guaranteed Issue: Major Medical Issues
Every applicant will qualify for one of these plans depending on prior health history.
5. I am in my 80’s, can I qualify for coverage?
The majority of carriers will initially insure applicants until the age of 80-85 depending on the plan type. There are a select few companies that will provide initial coverage until the age of 90.
Protip: Coverage never expires, this section is just speaking on the initial age upon application.
6. How is the price calculated?
The price the applicant will pay depends on three factors.
Health: The health of the proposed insured can greatly alter the price point. The better health one is in the less risky the carrier views the case as, and in turn the lower the price point.
On the flip side, the more health concerns an individual has the more the provider will want the applicant to pay.
This comes down to the risk tolerance of the carriers.
Age: The age of the applicant matters because the older one gets the higher risk they are. So each year you wait to take out a policy the more you should expect to pay.
Gender: Males can expect to pay more than females. There are a lot of reasons for this, however, the most glaring reason is that on average females live four years longer than males.
This results in lower premiums for women.
7. Waiting period: What is it?
This is a time restriction that the carrier will place on a high-risk policy. Specifically, the restriction will limit the payout amount.
If the insured was to pass away prior to the waiting period ending the beneficiary would receive only a portion of the coverage amount.
However, if the policyholder passes away after the waiting period then the beneficiary would receive the entire coverage amount.
Waiting periods are typically two years and come with Graded, Modified, and Guaranteed Issue plans.
8. What is the difference between these three product names?
There is no difference between the three names, these names are used to market the product and different carriers will use them interchangeably.
9. My parents need a policy: Can I purchase one for them?
Yes, you can, however, there are a few guidelines to follow.
The proposed insured will need to sign their name and agree to coverage. Also, they will need to be in a healthy enough mental state to understand what they are agreeing to.
You cannot take out a policy without them agreeing to it and being involved in the process.
a. Idaho Burial Insurance is both an affordable and obtainable option for coverage, there is a product for every medical condition.
If you are in great health the top choice in the state is the Living Promise Level product from Mutual of Omaha.
b. Work with a highly rated independent agent to assure you find the best price and best plan for your specific health history.
At Willamette Life we only focus on this one product, making us the experts in this space.
Call us at 844-576-0019