In the Lone Star State, life is a little bigger. From San Antonio to Amarillo and El Paso to Houston, this state represents all that is great about this country!
The item that is not always at the top of mind for Texans is the cost associated with the end of life. Often families of the deceased are left to pay these inevitable bills.
This is where a funeral insurance plan can help.
12 Necessary Questions About Texas Funeral Insurance
1. What is Funeral Insurance?
Funeral insurance is a type of whole life coverage, which means there are three key benefits.
Coverage Lock: Your coverage will never change. This is a critical feature when planning for your funeral expenses, and fortunately, the death benefit is guaranteed.
Price Lock: For seniors on a fixed income, this feature is at the highest of importance. Your price will never change regardless if you are in year one or year thirty of the policy. The monthly price is guaranteed to remain the same. Other products on the market like mailer AARP burial term insurance will actually increase in price the older you get.
Builds Cash Value: For each monthly payment made, a portion will go towards the cash value account. Over time this account will grow, and you can borrow from it if you choose.
2. This Product is Called Three Different Names: What is the Difference?
Funeral insurance, also known as burial and final expense insurance, refers to the same insurance plan type. You will hear three names used to market the product, but there is no difference between them.
3. How is Burial Insurance Different from a Traditional Whole Life Insurance Plan?
Two specific features make Texas burial insurance products unique.
Simplified Issue Underwriting: This means there will never be a medical exam required to get coverage. Which makes the application process much smoother and allows your policy to be active in a matter of days rather than weeks.
Lower Policy Amounts: With traditional whole life insurance, the policy amount is much higher than final expense coverage. This means lower face amounts will give you a much more affordable monthly premium with the same great benefits that bigger insurance plans have.
4. What can the Beneficiary Use the Payout for?
Life insurance is state-regulated, but there are no rules or regulations that say what funeral insurance can cover.
However, there are typical items that a beneficiary will use the funds for.
- Funeral Funding
- Memorial/Celebration of Life
- Leaving an Inheritance
- Credit Cards
- Medical Bills
- Post-mortem Expenses
- Remaining Car Loan Balances
- Legal Expenses
- Remaining Balance on a Mortgage
- Charity Donations
- Other Final Expenses
5. How is the Price Calculated?
Four factors will determine the price of funeral insurance for seniors.
Health: Your health will dictate what burial insurance plan type you can qualify for. The healthier you are, the more economical the premiums will be.
Age: The older you are, the more at risk you become for health issues. With this specific product, once you are awarded coverage, your price will never change. However, the longer you wait to lock in coverage, the more the price will be.
Coverage Amount: The more coverage you take out, the higher your premiums will be.
Gender: Males will pay more for policies than a female, there are many reasons for this, but the most obvious is that women on average live four years longer than males.
Ultimately the Texas Department of Insurance regulates and oversees the prices that consumers will pay.
6. Captive or Independent Agent: Which Should I Work With?
When applying for a policy, there are two types of agents you can work with. Both need to be licensed to sell in Texas.
Captive: This type of agent has a contractual agreement that only allows them to represent one company. An example would be your local neighborhood agent that represents a major company with high brand awareness.
This may seem like a logical choice but let’s pull back the curtain and show you a few things that may cause red flags.
The first is that every single company has different underwriting standards. This means one company will cover a specific medical condition, but a separate company will deny you for this same condition.
The second is the price point. Each company has a different price scale, and going with a captive agent locks you into one single company’s price.
Independent: This agent type represents and will contract with as many texas burial insurance companies as they choose. This means the agent can find you the best burial plans at the lowest price.
Choosing an independent agent is game-changing because you will have more options and peace of mind knowing you are getting a plan that is the best fit for you.
7. How do I Qualify for a Final Expense Plan?
The most reliable option would be to speak with a well-respected and highly rated independent agent. An agent will assist in finding the best burial plan at the lowest price.
8. How Old Can Someone be and Still Receive Coverage?
The majority of providers will initially insure applicants until the age of 80 or 85. However, there are a few select providers who will award initial coverage until 90 years old.
Pro tip: This section is just speaking on the initial coverage age. The product never expires once coverage is secured.
9. What Does a Waiting Period Mean?
A waiting period is a time that the carrier will only partially insure the policyholder. The insurance companies will include a waiting period for high-risk cases to lower their financial liability.
The waiting period typically ends two years after the initial coverage date.
How it works: If the insured dies within the waiting period, the beneficiary will receive a predetermined portion of the coverage amount. However, if the insured passes away after the waiting period has ended, then the beneficiary will receive the entire final expense insurance payout.
10. First-Day Coverage: How do I Qualify?
Your best opportunity to qualify for funeral insurance with no waiting period is by working with an independent agent who has access to multiple carriers.
11. Can You Purchase Policies for Parents?
Yes, you can. However, there are a few rules to follow. Your parent will need to be involved in the application process. This means they will have to be able to sign their name and answer the medical questions.
You can not take out a burial policy for parents or other loved ones without them being involved in the process.
12. How do I get a Final Expense Insurance Quote in Texas?
The simplest way to receive a price estimate is by using the quote tool on this page. Once you enter your basic information, it will show you a list of companies and prices.
To know what funeral plans you qualify for, contact Willamette Life at 844-576-0019
What Is The Best Funeral Insurance For Texans?
Every insurance carrier has different underwriting standards. This means that the best company for you could be completely different from the top option for your spouse or another family member. Finding the best burial coverage takes additional knowledge and understanding of what each company will approve and deny when it comes to pre-existing conditions.
Within funeral expense coverage, there are four types of plan options. Each of these comes at a different price point and plan structure.
Level: Offering immediate coverage and the lowest price point, a level plan is the top option designed for the healthiest of applicants. There is no waiting period with this plan which gives you and your family immediate financial protection.
Graded: With a more lenient underwriting process, the graded plans have a two-year progressive payout structure. If Death occurs in the first two policy years, a portion of the total coverage amount will be paid out. The financial distribution is typically 30 percent in year one and 70 percent in year two.
Modified: This plan includes a two-year waiting period that will return all premiums paid plus 10 percent interest if the policyholder passes away during this time.
Guaranteed Issue: Reserved for seniors with chronic or severe medical conditions, this plan asks no medical questions and guarantees every applicant’s approval.
Finding the Best Company and Plans
The biggest factor in finding the best funeral insurance company for you will always be your health. Once you have found the right company that is a good fit for your medical history, three other factors should take priority.
Low-Cost: Finding the lowest possible price is easier now than ever. Just use our instant quote tool on this page to compare rates between different insurance providers.
Immediate Coverage: Protecting your family as soon as possible is pivotal and will help secure the lowest rate possible. The team at Willamette Life will help find the best plan structure for you.
High Finacial Rating: Always use companies with high financial rating reviews. Using A.M. Best companies with B+ ratings or better when buying Texas Burial Insurance is essential.
Texas Funeral Expenses Statistics
Average funeral costs can range over a wide variety of price points depending on several factors. A burial in Houston and Midland will be more expensive than elsewhere in Texas.
The average traditional burial service in Texas is $7,861
The average traditional cremation service in TX is $6,363
Not included in the price estimates:
- Cost of Headstone, Monument, or Marker
- Cemetery Property, Plot of Land, Columbarium, etc.
In 2020 the National Funeral Directors Association said Texans decided to be cremated just over 50 percent of the time. 2030 projections are expecting this number to increase to 68.4 percent.
The average age at death in Texas is 76.8 for males and 81.4 for females.
- Males 76.1
- Females 81.1
Cause of Death
Listed below are the top 10 leading causes of death in the state.
- Heart Disease
- Chronic Lower Respiratory Disease
- Alzheimer’s Disease
- Kidney Disease
- Chronic Liver Disease/Cirrhosis
Everyone knows a loved one or friend who has struggled with one of these conditions. We never know when the time will come for our health to fail us unexpectedly.
When this happens, individuals need to be prepared so families can celebrate the life of the deceased without a financial burden looming.
Texas Burial Insurance Final Thoughts
a. Texas Funeral Insurance is an affordable and valuable option to save for end-of-life costs. For a simple and low monthly payment, you and your family will have peace of mind knowing your funeral costs are covered.
b. The best burial insurance plan for you may not be the best plan for someone else. Every medical condition will bring a different underwriting process when applying for coverage.
c. Work with an independent agent with access to the top final expense insurance companies on the market.
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.