New Mexico Burial Insurance: 10 Straightforward Questions

In The Land of Enchantment there much to be proud of. From the Carlsbad Caverns National Park to The Bandelier National Monument there is a ton to do and see.

However, the item that is not always at the top of mind for New Mexicans is how they plan on taking care of the final arrangements of their life.

This is a major financial ask for a family member to take on, especially one who is attempting to process the loss of a loved one.

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

The average traditional burial service in New Mexico is $7,150

The average traditional cremation service in NM is $5,823

Not included in the price estimates:

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

Fortunately, the solution to this monetary problem is Burial Insurance.

New Mexico Burial Insurance

The average age upon death in the state is 75.4 for males and 80.8 for females.

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

No one knows when their health will decline, the single most proactive thing one can do is create a financial plan for the inevitable cost that will be left for family members.

10 Straightforward Questions

1. What is Burial Insurance?

This product allows seniors to make an easy and affordable monthly payment and in return, the policyholder will be guaranteed the following five plan features.

Lump-sum payout: As long as the policyholder makes the payment each month, their beneficiary will be assured a lump-sum payout once they pass.

Quick payout process: After the carrier receives the death certificate the distribution should be paid within 5-7 business days for most companies.

This gets the financial funds to the beneficiary quickly and allows the family to honor the deceased properly.

Price Lock: The price will never increase, this is a key feature for anyone on a fixed income. No price hikes, no games, just a simple and affordable monthly payment.

Coverage Lock: The coverage will never change. When someone purchases a policy in order to cover the expense at the end of their life, it is important that the policy is still in force.

This product will be and will never expire.

Builds Cash Value: For every payment made a portion will go towards the cash value. Overtime the policyholder will have a lump sum they are able to borrow against, they can use this money for whatever they choose.

2. What can the beneficiary use the payout for?

The beneficiary has no rules or regulations on what the payout needs to be used for, however, the following is a common list of items used with the funds.

• Cremation
• Memorial/Celebration of Life
• Credit Cards
• Leaving an Inheritance
• Medical Bills
• Legal Expenses
• Charity Donations
• 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?

The biggest difference between these two agents comes down to a matter of choice.

Captive: This agent is handcuffed to one carrier and is only allowed to sell that one company’s products.

That might not seem like a big deal, especially if the carrier is a massive brand that is well known, however, when we look behind the curtain of the industry, each provider has different price points and underwriting standards.

What this means is if someone had the medical condition of nephropathy one carrier may deny them but the next carrier may accept them. It all depends on the company’s underwriting standards.

This can cause major problems if the captive agent you use does not have a plan that matches up with your health conditions or even worse, places you in a plan that is not in your best interest.

Independent: This agent works for themselves and is able to contract with whichever carrier they see fit.

As mentioned, every carrier has slightly different health niches they are willing to cover, it makes sense to work with a great agent that has all the pieces to the puzzle and not just one.

4. What can I qualify for?

For the most accurate answer to this question, you will want to contact an independent agent that has access to many different companies.

This will raise the possibility of finding the best possible plan for your unique health history. Prior to making the call, it is best practice 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 at least one of these plans.

5. What is the oldest age someone can receive coverage?

The majority of carriers will award initial coverage until the age of 85, however, there are a few providers who will initially insure applicants up until the age of 90.

Reminder, coverage can never expire, this section is just speaking on initial coverage.

6. How is the cost calculated?

The cost is dictated by three key factors.

Health: The applicant’s health history will have a major effect on the policy structure and price. This is because each company has separate underwriting standards and the type of health risks they are willing to take on.

Age: Once you receive coverage your price will never change no matter how old you get. Although your initial price will be dictated heavily by the age you are when coverage is initially awarded.

Gender: Female premiums are cheaper than male premiums. This is for a variety of reasons but the most obvious is that on average men live four years shorter than women.

7. Waiting period: What does it mean?

A waiting period is the time restriction a carrier places on high-risk cases. This restriction period is typically two years from the date the policy was issued, though each carrier gets to dictate its own timeline.

If the insured was to pass away prior to the waiting period expiring the beneficiary would receive a partial payout.

If the insured dies after the waiting period had passed then the beneficiary would receive the entire policy amount.

8. What is first-day coverage?

First-day coverage has no waiting period and is awarded to those who are in good to great health.

Working with an independent agent that represents many carriers is the best course of action to get this type of policy.

9. What is the difference between these three product names?

These names are used by the carriers to market its products.

There is no difference between the three terms, they all mean the same thing.

10. Can I purchase a policy for a loved one?

Yes, you can, however, there are two major items to keep in mind when purchasing for someone else.

The proposed insured needs to agree to coverage and sign their name on the application.

Also, they need to be in a healthy enough state of mind to understand what they are agreeing to.

6 Conclusive Plans

#1 Mutual Of Omaha - Living Promise (Level)

The Level plan from Mutual of Omaha offers immediate coverage and some of the low premiums you will find. Also, there is a number of additional benefits that can be added to this policy, including living benefits.

This is a great product for those who are healthy or have mild health conditions like high blood pressure.

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.

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#2 Foresters Financial - PlanRight (Preferred)

This Foresters Financial plan offers immediate coverage and low premiums.

Additionally, with your policy, you become a member of this organization that offers benefits including dental and vision discounts.

If you are healthy 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

#3 Royal Neighbors of America - SIWL (Level)

This plan from Royal Neighbors offers first-day coverage and respectable premiums but also will take on slightly higher risk medical conditions like diabetes.

If you are looking for immediate coverage but not sure if you can qualify for one of the first two plans on this list, this Level plan product could be your ticket.

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

#4 Sentinel Security Life - New Vantage II (Graded)

The New Vantage II plan has a two-year waiting period with a true Graded death benefit. This plan comes with reasonable premiums and lenient underwriting.

If you have a more complicated medical history this might be the plan for you.

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

#5 Guarantee Trust Life - Heritage (Graded)

The Heritage plan is great for individuals who have a complex medical history. Asking just 5 medical questions most applicants will be able to qualify for this plan.

Due to the favorable underwriting, it comes with a two-year waiting period with a great 2nd-year payout option.

Waiting period 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

#6 AIG (Guaranteed Issue)

This is a Guaranteed Issue product meaning no medical questions are asked and every applicant is accepted. This is a great option for those who would otherwise not qualify for a plan.

If you do need to use this plan our recommendation is AIG. They offer competitive premiums and living benefits which is hard to find in a plan with guaranteed acceptance.

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 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: Alzheimer’s, Dementia or Memory Loss, receiving Kidney Dialysis, 24-hour Continuous Oxygen use, Implanted Difibulator, or Organ Transplant

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Final Thoughts

a. New Mexico Burial Insurance is a great option for seniors looking for a simple way to take care of their end-of-life expenses. With easy and affordable monthly payments your family will have the resources needed to take care of incurred bills.

b. Use an independent agent who is respected in this niche to find the right policy for your specific medical history.

Willamette Life is here for you!

Call us at 844-576-0019