In Big Sky Country life is a little more beautiful. From Kootenai National Forest down to The Yellowstone River, this state is truly miraculous.
The item that is not always at the top of mind for Montanans is the cost associated with the end of their life.
For family members who have just lost a loved one, this financial aspect is a massive burden.
Funeral costs can range over a wide variety of price points depending on many factors.
The average traditional burial service in Montana is $6,842
The average traditional cremation service in MT is $5,550
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 help.
Montana Burial Insurance
The average age of death in the state is 76.8 for males and 80.9 for females.
This is very close to the national average for both men and women.
- 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 decline, this makes it even more important to create a financial plan to leave your loved ones with the financial resources necessary.
11 Questions Explored
1. Burial Insurance: What is it?
This product is a type of whole life coverage, this means you will receive 5 awesome benefits with your policy.
Guaranteed Payout: As long as the policyholder makes the monthly premium payments, the beneficiary of the policy is guaranteed a lumpsum payment. The distribution amount will be determined by how much the coverage is.
Fast Payout: Along with the guaranteed payout, once the beneficiary gives the death certificate to the provider, the distribution can be expected in a matter of days.
Other products on the market can take weeks or even months to payout.
Price will never change: The premiums are locked in and will never increase. For any senior on a fixed income, this feature is of the utmost importance. When budgeting your expenses for the month being able to know the exact cost is a major benefit.
Coverage will never decrease or terminate: When taking out a policy for the end of one’s life it is important the coverage is there for the beneficiary when needed.
Some policies on the market will cancel or decrease in coverage over the years, this product will never do that.
Builds Cash Value: For each payment made a portion will go towards the cash value. This, over time, will give you the option to borrow from the policy if you so choose.
2. What can the beneficiary use the distribution for?
There are no regulations that mandate what the payout needs to be used for. However, there is a traditional set of items that beneficiaries will use the money for.
- Memorial/Celebration of Life
- Credit Cards
- Charity Donations
- Leaving an Inheritance
- Legal Expenses
- Medical Bills
- Remaining Balance on a Mortgage
- Remaining Car Loan Balances
- Post-Mortem Expenses
- Other End-of-Life Expenses
3. Captive or Independent Agent: How to choose?
These agents are both able to secure satisfactory coverage for an applicant, however, the process is vastly different from agent to agent.
Captive: This agent is contracted with one single carrier. Even if there are better prices with a different provider they are required to sell you the one company’s product that they represent.
This may not seem like a big deal but when taking a closer look it can be very problematic.
Each carrier has different underwriting standards, this means one provider may approve someone with Crohn’s Disease while another will decline this condition.
The same can be said for the price point of each plan, there could be two carriers with the same plan type but the price could be greatly different.
Working with a captive agent is like only having a hammer for a project that requires other tools.
Independent: This agent represents as many carriers as they choose, this means they are able to have the right plan type for every budget and medical history of the applicant.
This agent has a toolbox with all the tools necessary to complete the job.
4. Plan types: What can I qualify for?
The ultimate way to find the plan that is the best fit for you is by working with a well respected and highly rated independent agent. This will assure that you find the right plan at the lowest price.
Prior to contacting a professional, educate yourself on the four different types of plans.
- Level: Great Health
- Graded: Average Health
- Modified: Past Health Concerns
- Guaranteed Issue: Major Medical Issues
Each applicant will qualify for at least one of these four plans.
5. What is the oldest age to secure a plan?
The majority of carriers will award initial coverage until the age of 80-85, there are a select few providers who will issue coverage until 90 years old.
Reminder: This section is speaking specifically on initial coverage, your plan will never expire.
6. How is the price calculated?
There are two major factors to the way price is determined.
Health: Your medical history has the heaviest weight on the price. This is because the healthier you are the lower the risk is to the provider. The same goes for those with more medical concerns someone has had in the past, which will increase the price.
Always speak with an independent agent that can match your specific medical history with the perfect plan.
Age: The initial age during the time of application will have an impact on the price.
As stated earlier your price will never increase even as you age, however, each year you wait to buy coverage will increase your price.
7. Does gender affect the cost?
In every other state in the United States it does, but not in Montana.
The state of Montana has unisex rates for coverage.
8. Waiting period: What is it?
This is a time restriction the carrier places on higher risk cases, this restriction is typically two years but varies from company to company.
How it works:
If the insured passes away during the waiting period the beneficiary will receive a portion of the coverage amount.
If the insured dies after the waiting period has ended the beneficiary receives the full payout amount.
9. How do I secure first-day coverage?
The best way to receive coverage immediately is by working with a highly rated independent agent who has access to many different companies.
10. I have heard this product referred to by three different names: What’s the correct terminology?
Companies will use these three names interchangeably to market the product.
There is no difference between the three names.
11. Can I purchase this product for my parents?
Yes, you can but there are a few things to know when purchasing this product for a loved one or parent.
The proposed insured needs to agree to the coverage and sign their name on the policy. You cannot take out a policy on anyone without their permission.
5 Terrific Plans
#1 Mutual Of Omaha – Living Promise (Level)
The Mutual of Omaha Level plan offers immediate coverage and some great benefits including living rider options.
This plan comes in at one of the lowest price points on the market and is reserved for the healthiest of individuals. If you fit in this category apply for this product.
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.
#2 Foresters Financial – PlanRight (Preferred)
The Preferred product from Foresters Financial is another rock-solid plan option. Day-one coverage and low premiums are just the tip of the iceberg with this plan.
Included with every policy are additional benefits on services like vision, hearing, and dental discounts.
If you are in good health this is another top-notch plan.
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.
#3 Royal Neighbors of America – SIWL (Level)
The Level Plan from Royal Neighbors is an awesome option for those who have had minor medical conditions in the past like diabetes or obesity.
Still offering day-one coverage and respectable premiums, this product is more lenient for those with a complicated medical history.
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.
#4 Sentinel Security Life – New Vantage II (Graded)
The New Vantage II product is a great plan for those with multiple medical conditions that make qualifying for immediate coverage not possible.
This product has favorable underwriting which requires a two-year waiting period.
During this Graded plan’s waiting period, your beneficiary will be covered with the best policy structure for this product class.
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
#5 AIG (Guaranteed Issue)
This product is a Guaranteed Issue plan. This means that no medical questions are asked and every applicant is automatically approved.
This plan is reserved for those with the most serious medical conditions.
If you are required to use this plan type our recommendation is AIG’s product because it offers low premiums and living benefits.
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?
Use this plan ONLY if you have one or more 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
- Currently have or receiving treatment for invasive cancer
- In the past 24 months diagnosed with: Alzheimer’s, Dementia or Memory Loss, receiving Kidney Dialysis, 24-hour Continuous Oxygen use, Implanted Difibulator, or Organ Transplant
a. Montana Burial Insurance is both affordable and attainable. Offering coverage options for any type of medical history and budget, there is a product for everyone.
b. If you are in good health use either the Mutual of Omaha or Foresters Financial plan.
c. Work with an independent agent that has access to many different carriers, this will give you the best chance to qualify for a top-notch plan.
Willamette Life specializes in this product and will help you find the best plan and make sure Burial Insurance is worth it for you.
Call us at 833-518-0080.
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.