Michigan Funeral Insurance: 14 Premier Questions

Michigan funeral insurance
Michigan Funeral Insurance: 14 Premier Questions

The Great Lakes State has so much to be proud of. From Hunter’s Point Park to Mackinac Island and down to Kalamazoo, this state has beauty spread throughout for miles and miles.

The thing not commonly number one on the priority list for Michiganders is creating a plan for the inevitable expenses that are left behind after death. This can be a major financial surprise for family members during a time of sorrow and reflection.

Fortunately, this is where funeral insurance can be a valuable asset.

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14 Premier Questions To Ask About Michigan Funeral Insurance

1. What is Michigan Funeral Insurance?

Funeral insurance is also called final expense and burial insurance. This type of life insurance is best for individuals who are looking for a solution to leave behind a financial legacy for their loved ones.

Burial insurance falls into the category of whole life insurance and is a wonderful choice to prepare for seniors’ final expenses. This is because of the affordability, accessibility, and whole life benefits.

Low-Cost Premiums: Final expense policies come in smaller coverage amounts up to $40,000. Traditional policies commonly have minimum face amounts of $50,000 making the monthly cost significantly more.

No Medical Exam: With simplified underwriting, there will never be a medical exam to qualify for burial insurance. The application can be completed entirely over the phone in about 20 minutes.

Policy Never Expires: If you make your monthly payment every month, your policy will never expire or decrease in value. This is so important because the product is meant for your end-of-life expenses so the policy needs to be active when this time comes.

Price Never Changes: You are guaranteed that your premiums will never rise, couple this feature with the fact that the policy will never expire, you essentially have a locked-in promise from the provider that your price will be the same for the rest of your life.

Builds Cash Value: For every payment that you make a portion will go into the cash value. This will over time allow you to borrow against the policy if needed.

2. How Much Does a Michigan Burial Policy Cost?

The cost of funeral insurance in Michigan varies based on the age, gender, and health of the applicant. Additionally, the size of the policy will also be a factor in the price, the more protection you get, the higher the monthly premiums are.

Michigan Funeral Insurance Premiums

$10,000 Death Benefit

Non-Smoking Rates

Age Female Male
45 $23 – $34 $27 – $47
50 $24 – $39 $31 – $56
55 $28 – $47 $36 – $61
60 $33 – $54 $44 – $68
65 $41 – $66 $56 – $91
70 $53 – $80 $75 – $106
75 $72 – $116 $100 – $150
80 $98 – $190 $140 – $232
85 $136 – $220 $193 – $312

3. Does the Death Benefit Payout Money Have Any Restrictions?

There are no regulations on what the money can be spent on. However, the beneficiary typically uses the money at the funeral home for funeral director fees and other service-related costs.

Common Death Benefit Uses: 

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

4. What’s the Difference Between a Captive and an Independent Agent?

While both agents, if licensed in the state of Michigan, can issue a policy, the amount of policies that they have available to them drastically varies.

Captive Agents: These agents are contractually obligated to represent just one company. This can cause an issue because every company and policy has different underwriting standards and price points.

Independent Agents: Free to represent as many providers as they wish, independent agents are able to have a much larger toolbox of companies. By having access to more companies, there are likely better options available to fit the needs of individual clients.

5. Who Qualifies for Michigan Final Expense Insurance?

To qualify for coverage you should contact an independent agent that specializes in burial insurance. However, before moving forward it is best to understand the four plan types. Every senior will qualify for at least one of these plans.

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

-6. What is the oldest age someone can receive coverage?

Most carriers will initially provide coverage until the age of 85, however, there is a select amount of companies that will award coverage up until the age of 90.

-7. My health condition is average: What is my best plan option?

This will come down to your specific health history. Each carrier has different underwriting standards, meaning every medical condition will be judged differently by each company.

For example, specific carriers will not award coverage to someone who is overweight or obese while other providers will not ask about your weight.

Speak with an independent agent to find a tailored plan to fit your needs.

 -8. What does it mean if a plan has a waiting period?

A waiting period is a time restriction that the provider places on high-risk cases. This restriction will pay out just a portion of the coverage amount if the insured were to pass away prior to the waiting period ending.

If the insured passed away after the waiting period then the beneficiary would receive the full coverage amount.

Waiting periods are typically two years but each carrier gets to dictate this timeline. 

-8. How do I receive immediate coverage?

Every carrier will look at your health history differently, there are unfortunately specific conditions that will not allow for immediate coverage.

The best chance you have at securing first-day coverage is by speaking with an independent agent who has access to many different companies.

-9. Which provider has the best coverage?

This will come down to three specific variables.

Your health history: Depending on how your past health and prescription history looks this will have a major factor in what type of company you will be able to qualify for.

Your age: Your age will drastically change what carrier is your best option.

Your gender: Depending on if you are male or female this will change your price point.

Males will pay more for coverage than females, this has to do with many variables but the most obvious is that males on average live four years less than females.

The bottom line is there is not a one size fits all product or plan, this process is highly individualized.

10. Is Michigan Burial Insurance Worth Buying?

This product is meant for seniors to make simple, affordable monthly payments and in return get peace of mind. You may want to do the math to see how long it will take to “overpay” into the policy versus saving, but more often than not it is totally worth it.

??. What Are Prepaid Funerals and Are They Legal in Michigan?

Prepaid funerals are arranged by seniors and the funeral home. By getting one of these plans you are making selections for your own future funeral. Doing this takes away any uncertainty and potential miscommunication between the insured and their family.

The Michigan Prepaid Funeral and Cemetery Sales Act is in place and regulates the sale and provision of certain funeral and cemetery goods and services. Anyone who sells prepaid funeral insurance must be registered with the Michigan Department of Licensing and Regulatory Affairs.

Prepaid funerals are completely legal in the state of Michigan as long as the provider is licensed and abides by the regulations.

-11. Can I purchase a product for a loved one?

Yes, you can however there are a few requirements for this process. The proposed insured needs to sign their name and agree to the coverage.

Also, they will need to be in a fit enough mental state to understand what they are agreeing to.

You cannot take out a policy without their permission.

-12. What is the best way to receive a quote?

The fastest way to obtain a quote is by using our quote tool on this page. It will show you a list of carriers and their prices. To know what company you can qualify for you will want to contact Willamette Life.

Call us at 844-576-0019

-13. Can I apply over the phone?

Yes, you can, the entire process takes roughly 30 minutes to complete.

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What is the Best Michigan Funeral Insurance?

The best burial insurance in Michigan is different from person to person. The reason for this is because each insurance company and policy has unique underwriting criteria, so it depends on which coverage someone can qualify for.

Having said that, there are three main things Michiganders should look for before applying for burial life insurance coverage.

Monthly Premiums: Make sure that the monthly premiums are affordable for your current and future income status.

Insurance Provider:

Start of Coverage:

Average Funeral Cost in Michigan & Statistics

 

How Much Does a Burial Cost in Michigan?

Funeral costs can range over a wide variety of price points depending on the selections made throughout the process. The average burial service in Michigan is $8,287 and the average cremation service is $6,828. These prices do not include a headstone or monument marker and cemetery plot or niche.

Location

Burial

Cremation

Ann Arbor $9,295 $7,755
Detroit $7,123 $5,776
Hancock $7,803 $6,371
Flint $7,182 $5,905
Grand Rapids $8,095 $6,715
Iron Mountain $8,318 $6,768
Kalamazoo $9,471 $7,988
Lansing $8,871 $7,348
Marquette $8,591 $7,188
Traverse City $8,116 $6,463
State Average $8,287 $6,828

Cremation Rules and Preferences in Michigan

How Much Does the State of Michigan Pay for Cremation?

How Do I Apply for Burial Assistance in Michigan?

Michigan Causes of Death & Lifespan

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

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

It is impossible for anyone to know when their health will become a problem, this makes it all so important that a plan is created to combat the financial costs that you will leave behind.

The average age of death in the state is 75.9 for males and 80.3 for females. This is slightly shorter than the national average lifespan.

National Average:

  • Males 76.1
  • Females 81.1

 

Final Thoughts

a. Michigan Funeral Insurance is both affordable and accessible, not every state is as lucky to have this many great plan options. If you have a simple health history we recommend a plan from Mutual of Omaha or Foresters Financial.

b. Always work with an experienced independent agent, they will be able to find you the best plan at the lowest possible price point.

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