Rhode Island Burial Insurance: 13 Robust Questions To Ask

The Ocean State may be the smallest state in the country but its beauty is at the top of the list. From The Breakers and Cliff Walk in Newport up to the Buck Hill Management Area, and everywhere in between, there are so many things to do and see.

The item many Rhode Islanders do not think about is their end of life expenses, this can be a major monetary burden on family members and loved ones at a time of grieving.

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

The average traditional burial service in Rhode Island is $8,263

The average traditional cremation service in RI is $6,958

Not included in the price estimates:

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

This is where Burial Insurance can be a great tool to help ease these costs.

Rhode Island Burial Insurance

The average age of death in the state is 77.6 for males and 82.1 for females.

This is higher than the national average life span.

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. Alzheimer’s Disease
6. Stroke
7. Diabetes
8. Flu/Pneumonia
9. Kidney Disease
10. Chronic Liver Disease/Cirrhosis

Every person knows a friend, family member, or loved one who has been affected by one of these health conditions. The best thing to do is prepare for the inevitable costs associated with the end of life.

13 Robust Questions To Ask

1. What is Burial Insurance?

This product is a type of Whole Life coverage that offers three main benefits.

Coverage is locked: The coverage will never decrease or expire for the rest of your life. As long as the policy owner pays the monthly premiums, the coverage will always be there.

Price never changes: This benefit is great for anyone who is on a fixed income and is looking for permanent coverage. You can rest assured that you will pay the same price in year one that you will pay in year 10 and beyond. The price will remain constant and never raise.

Builds cash value: For every payment you make a portion will go into the cash value of your policy. This allows you to borrow against the policy if you are ever in need of extra financial help.

Looking specifically at a Burial Insurance product, it has a smaller face amount but provides the same benefits as a larger traditional Whole Life product, This means you can receive the same features for a much smaller monthly premium.

2. What can the payout be used for?

There are no guidelines or specific rules that require you to use the payout on specific items, however, below is a list that beneficiaries typically use the payout for.

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

3. Captive Agent VS Independent Agent: Which is better?

There are a few major differences between these two types of agents.

Captive: Represent one single company and is required to sell only that one companies products. This limits the number of products clients are able to see and lowers the ability to find a plan that’s best for you.

Independent: An independent agent is one that can represent as many carriers as they choose, this allows the agent to help the client find the best product for the best price that matches their specific needs.

4. How old can I be and still get coverage?

You are able to receive coverage up to the age of 90 years old with a select few carriers. However, the majority of providers issue initial coverage until the age of 85.

Another reason to work with an independent agent that represents many companies and can find a plan for virtually any age.

5. What do I need to do to qualify?

The best way to go through the qualifying process is by contacting an independent agent, however before you do that it is great to educate yourself on the plan types.

• Level: Great health
• Graded: Past health concerns
• Modified: More serious health concerns
• Guaranteed Issue: Chronic or terminal illnesses

Every person will fall into one of these categories, there is a plan for everyone but you need to speak with someone that has access to many plan options.

6. How fast does the beneficiary receive the funds?

This process takes roughly a few business days once the death certificate is received by the provider.

Your beneficiary can contact the agent to help facilitate this process.

7. I qualified for a waiting period plan: What is it?

The carriers place time restrictions on higher risk cases, these time restrictions typically last two years. During the waiting period if the insured was to pass away the beneficiary would receive a predetermined portion of the coverage amount.

If the insured was to pass away after the waiting period then the beneficiary would be awarded the full face amount.

8. First-day coverage: How do I qualify?

First-day coverage requires the proposed insured to be in good health and not have a serious or chronic illness.

The chances of finding the right plan increase drastically by working with an independent agent like Willamette Life who has access to many different providers.

9. What company has the best plan?

There is no right answer to this question. Each carrier represents a different risk tolerance when it comes to certain conditions, this means someone with Dyalisis will qualify for a much different plan than someone with Congestive Heart failure.

10. How do I know if this is worth it?

This product is for seniors who want to have an affordable option to be able to leave a legacy behind and not a financial burden.

Giving your family the financial gift to celebrate your life is always worth a reasonable monthly price.

11. Social Security: Will they pay for these costs?

Social Security will provide a maximum death benefit of $255 to your beneficiary, even then your loved ones may have to jump through hoops to receive that money.

Do not use this as your financial game plan.

12. Is there a difference between the three names used to describe this product?

The three names used to describe this product all mean the same thing and can be used interchangeably. If someone tells you other than this they are either misleading you or are uninformed themselves.

13. My parent needs a policy: Can I purchase it for them?

You are allowed to purchase the policy and pay for it, however, your parent or loved one would need to be involved in the process. The requirements would be them signing their name and being in a good mental state that they understand what they are agreeing to.

6 Exceptional Plans

#1 Mutual Of Omaha – Living Promise (Level)

The Living Promise plan offers immediate coverage for the healthiest of individuals. Also, this plan has ultra-low premiums that will keep your wallet happy.

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)

Foresters Financial offers first-day coverage at very fair prices that are affordable for anyone’s budget. Also included with your policy are additional benefits including dental, hearing, and vision discounts.

If you are in good health with no upcoming or recent surgery this plan could be a great option for you.

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.

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#3 Royal Neighbors of America – SIWL (Level)

Royal Neighbors has a wonderful plan option for individuals who are looking for no waiting period coverage but may not have a perfect health history.

Asking only nine medical questions, this carrier is very flexible and understanding when it comes to conditions like obesity and diabetes.

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.

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

This plan is meant for someone who has had recent surgery or in average health.

This Graded plan comes with a two-year waiting period that pays out a percentage of the coverage amount if the insured were to pass away during this waiting period.

• 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 (depending on age)
• 2-year waiting period

Visit the blog section to read further about our review of this plan.

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#5 Guarantee Trust Life – Heritage (Graded)

The Heritage plan from Guarantee Trust Life is a wonderful option for individuals who have had a complicated health history.

Asking only five medical questions and giving a very favorable two-year waiting period payout structure, we endorse this plan.

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 our review of this great plan.

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#6 AIG (Guaranteed Issue)

This plan from AIG is a Guaranteed Issue policy. This means that the carrier will not ask any medical questions and coverage is guaranteed. The flexible underwriting comes with a trade-off, which is higher premiums and a very standard two-year waiting period.

If the insured passes away during the waiting period the beneficiary receives the following payout structure.

2-Year Waiting Period Payout Details

• Months 0-24: All premiums paid +10% is given to the beneficiary
• Months 24+: 100% of the face amount will be paid out to the beneficiary

If you do need to use a Guaranteed Acceptance plan we will recommend using AIG’s plan. Offering living benefits and reasonable premiums they are your best choice with this coverage type.

Is this Guaranteed Issue plan right for me?

If you have any of the following medical conditions this plan is your best option.

• AIDS, ARC, HIV
• On Hospice
• Bedridden
• Confined to hospital, nursing home, mental care, or long term care facility
• Currently have or receiving treatment for invasive cancer
• Diagnosed with a terminal illness
• 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. Rhode Island Burial Insurance is affordable and obtainable. From the most healthy of clients to individuals with serious and complicated medical history, there is a plan that is right for you.

b. To find your best plan it is essential that you work with an agency that has access to many carriers. Each carrier will insure different types of medical conditions and there is not a one size fits all company.

At Willamette Life, we pride ourselves on finding the best plan for each client.

Call us at 844-576-0019