North Dakota Burial Insurance: 10 Practical Questions

In The Peace Garden State residents have much to be thankful for, from Fargo and the Sheyenne National Grassland to Theodore Roosevelt National Park this is truly a beautiful state.

An item on the to-do list that does not always get done is creating a plan for the financial bills that come at the end of one’s life.

This is a major financial price tag for loved ones to be asked to take on.

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

The average traditional burial service in North Dakota is $7,969

The average traditional cremation service in ND is $6,513

Not included in the price estimates:

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

Fortunately, Burial Insurance can help with the monetary aspect of one’s passing.

North Dakota Burial Insurance

The average age upon death in the state is 77.6 for males and 82.5 for females.

This is well above 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. Alzheimer’s Disease
4. Chronic Lower Respiratory Disease
5. Accidents
6. Stroke
7. Diabetes
8. Suicide
9. Flu/Pneumonia
10. Kidney Disease

Everyone knows a family member, friend, or loved one who has been affected by one of these conditions. The most proactive thing to do is create a plan to leave your family members in a strong financial situation.

10 Practical Questions

1. Burial Insurance: What is it?

This is a type of Whole Life coverage meant to protect families from the financial costs that come at the end of someone’s life.

Each plan comes with three promises from the carrier.

Price will never change: With this plan, you can be assured the price will never raise. This is critical for anyone on a budget especially a fixed income in their senior years.

Coverage will never decrease or expire: When purchasing a plan designed to cover the inevitable costs that come at the end of one’s life it is obviously important that the financial relief is there when your beneficiary needs it.

You can count on this plan being there for your loved ones when they need it the most.

Builds cash value over time: For every payment that you make a portion will go towards the cash value. Over time this will grow in value and policyholders can borrow against the plan if they choose.

2. Are there specific rules on what the payout can be used for?

There are not any rules or regulations on what the distribution must be used for, however, there are a number of items typically used with the policy payout.

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

3. Which is the better option: Captive Agent or Independent Agent?

Both of these types of agents are able to secure a policy for prospective policyholders however there is a major difference between the two.

Captive: This agent type is only allowed to represent one specific carrier. The issue that comes with this is that every company has different pricing and underwriting standards.

For example, someone who has had a stroke may qualify for one company’s plan and a different company could comply deny the applicant for coverage.

The same goes for the pricing, two separate companies could offer very similar plans but the price might vary drastically.

Independent: This agent is not shackled to any one carrier, in a sense, they work for themselves and can represent as many carriers as they wish. This allows them to have enough tools in their toolbox to help you find the perfect plan.

Always choose Independent, you have more choices! 

4. What can I qualify for?

The single best way to figure out what you can qualify for is by contacting a respected independent agent who has a wide variety of carriers that they represent. This will assure that you have the best chance to find a plan that is tailored for you.

Prior to contacting an agent, it is a great idea to familiarize yourself with the four different types of plans.

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

Every applicant will qualify for one of these plan types.

5. What is the age range to receive coverage?

The age range typically will start at around 40 years old. It is possible to find providers that will take initial applicants until the age of 90, but most stop at 85.

6. Cost: How is it calculated?

There are three main factors in how the cost is calculated.

Health: Depending on your health there is a wide variety of options you have for coverage.

The underwriting process is extremely specialized from company to company. For example, if you had a recent heart surgery you would qualify for a much different plan than someone who has diabetes.

Age: Your age at the time you take out a policy will play a major factor in the price you pay each month. As explained earlier, the price will never change once you have secured your plan but for each year that you wait to purchase coverage, the price will rise.

Gender: Your gender will affect the price as well. Women pay less than men when it comes to monthly premiums. There are different reasons for this but the simplest is that females live longer than males.

 7. What does it mean if my plan has a waiting period?

This simply means that the carrier will place a restriction on the full payout amount if you were to pass away during the designated waiting period. This happens when the provider takes on higher risk cases.

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

However, if the beneficiary was to die after the waiting period has ended then the beneficiary would receive the entire coverage amount.

Waiting periods are typically two years but ultimately each carrier dictates this timeline.

8. What is the best way to secure immediate coverage?

The best way to receive coverage with no waiting period is by contacting an independent agent that has a great reputation and has access to many different companies.

There are certain medical conditions that will not allow immediate coverage, speak with your agent if you have further questions.

9. There are three names for this product: What is the difference?

These three names are used by the carrier to market the product.

There is no difference between the different names.

10. Can I purchase a policy for my parent?

Yes, you can, but there are a few rules that need to be followed. The main one being that the insured needs to be a willing participant in the process, meaning they will need to agree to coverage and sign their name.

You cannot take out a plan without their permission.

6 Elite Plans

#1 Mutual Of Omaha – Living Promise (Level)

This Living Promise plan is a great choice for the healthiest of applicants. Offering first-day coverage and low premiums this is the top plan option in the state.

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 PlanRight product is a fantastic option, offering day-one coverage and affordable premiums.

A bonus when taking out a policy with Foresters Financial is that you become a member of their organization and receive discounts on services of dental, vision, hearing, and more!

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 is a great option, offering immediate coverage, and respectable premiums.

This plan is best for individuals who have had past medical concerns like nephropathy, diabetes, obesity, and others.

Asking only nine medical questions this is a good choice for individuals in moderate health.

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)

This product hits the sweet spot between an immediate coverage product and a Guaranteed Issue plan.

New Vantage II has many great features but at the top of the list is the Graded payout structure, this is among the best in the industry for a Graded plan.

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

Visit the blog section under the main menu to read more about this plan.

Quotes

#5 Guarantee Trust Life – Heritage (Graded)

The Heritage plan from GTL offers very favorable underwriting with just five medical questions asked.

This plan is right for someone with a complex medical history.

With the lenient underwriting comes a two-year waiting period.

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.

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#6 AIG (Guaranteed Issue)

The AIG plan is a Guaranteed Issue policy that is designed for high-risk individuals. No medical questions are asked and everyone is approved for coverage.

If you do need to use this plan type we endorse AIG’s product for the low monthly premiums and living benefits.

Both of these features are best in class for a Guaranteed Acceptance plan.

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?

You should apply for this plan ONLY if you have one of the following medical conditions.

• AIDS, ARC, HIV
• On Hospice
• Confined to hospital, nursing home, mental care, or long term care facility
• Diagnosed with a terminal illness
• 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. North Dakota Burial Insurance is both an accessible and affordable option to assist your family with the financial burden that comes with death.

b. Work with an independent agent to find the plan structure and price that best fits your specific needs. This is important because everyone has a different health history and there is not a one size fits all policy.

Willamette Life is here to answer any questions that you may have.

Call us at 844-576-0019