Buying burial insurance on a fixed income is not a problem because of the numerous companies and whole life insurance policy amounts that are available. Each person’s age, health, and insurance needs are factors in determining how much the monthly premium or payments will cost for the funeral insurance. You can’t change your age and medical history but the insurance company and death benefit do affect how expensive the payments are. So when working with a lower income, comparing the whole life insurance company and death benefits are the most important steps.
Thankfully there are many, many burial insurance companies and unlimited policy amounts to compare. The good news is once you choose your burial insurance plan, monthly payments are guaranteed NEVER to go up as long as the payments are made. So once you get used to the burial insurance premium being part of your monthly expenses, you can rest assured your rates won’t be raised for your entire life. With so many options, even those buying burial insurance on a fixed income can find a policy to fit their budget.
Step One- Choose a Broker
Since the two factors influencing the monthly premium are the insurance company and face value of the whole life insurance policy, the first and most important step for clients on a low income is to choose a broker to help secure your burial insurance. The reason a broker is so important is because a broker works with many different whole life insurance companies. Individual insurance agents usually only work with one burial insurance company which limits the options you have for fitting the monthly payment into your budget. Brokers have an understanding of which companies specialize in certain types of burial insurance and their expertise can save clients hundreds of dollars a year in premiums just by choosing the best company for funeral insurance. Assurance Life is a broker who works with reputable companies such as AIG, Mutual of Omaha, Gerber Life, and Family Benefit. These life insurance companies and more offer FREE QUOTES through Assurance Life for customers who are buying burial insurance on a fixed income.
Step Two- Quick and Easy Questionnaire
Once you request a free quote, your broker will have you complete a quick and easy questionnaire to get started on your burial insurance quote. Two of the factors influencing the monthly premium are your age and health history. After providing the basic information, you will answer medical questions with YES or NO answers so it is a simple process to answer the questions and usually takes less than 10 minutes. While you can’t change your age or health history, your broker will know which companies specialize in meeting your needs based on your unique profile. For example, if you are on a certain heart medication, one company might charge extra but another company won’t see that medication as higher risk. The customer won’t know the difference between those burial insurance companies but a good broker will. Once the questionnaire is complete, the broker will secure several quotes for you to compare and see which whole life insurance plan fits your budget.
Step Three- Choose your plan
When you are buying burial insurance on a fixed income, the two variables that help lower the monthly premiums are choice of company and choice of death benefit. Of course, you will want as much insurance as you can afford to give your family peace of mind that as many of your final expenses will be paid for as possible. The average funeral costs range from $7500-10,000 depending on if you prefer cremation or burial, type of service, plot, and so forth. Getting the highest death benefit that works within your budget can depend on finding the right whole life insurance company. This is where you will compare the quotes from the companies that your broker has seen fit your age and health profile and choose the one that fits your budget. Sometimes burial insurance is the last thing on the list when prioritizing expenses but once you get your plan in place, it is a great feeling to have the peace of mind knowing your family is protected. Remember, once you fit the burial insurance payment into your budget, the premiums NEVER go up for your entire life. They are guaranteed to stay the same. Also, you are able to choose the exact date of the month when payments will be made so it can fit when your income is received.
Sometimes when buying burial insurance on a fixed income, clients struggle to afford even the least expensive plan available. In those cases, Assurance Life recommends talking to family members to see if they are able to help you afford the burial insurance. It is a wonderful thing to be able to set up a burial insurance plan as a blessing to family members so they aren’t financially burdened by paying for final expenses upon their parents’ or loved one’s passing. However, if one can’t fully afford the burial insurance, often times family members would rather chip in for part of the monthly payments than have to come up with thousands of dollars in funeral costs and paying debts and settling affairs after the fact. It can be a better financial decision to help pay for final expense insurance ahead of time and it can save thousands in the long run. It can be uncomfortable to have that discussion with family members but it is actually helping them to at least give the option of helping you afford the burial insurance that benefits them in the long run.
If it turns out that your family member wants to pay for the entire burial insurance policy, it is actually possible to make them the owner of the policy and the family member who is insurance is simply the insured party on the policy. There are just a few differences in how that works but basically the family member is set up to be financially responsible for the whole life insurance monthly premiums and they would receive the death benefit upon your passing. Sometimes for those on a fixed income, this turns out to be the best solution for you to be sure the family will have enough money to pay final expenses.
So things to remember when buying burial insurance on a fixed income are- use a broker, compare companies and face value amounts, and ask family for help if you simply can’t afford the monthly payments. The peace of mind you and your family will have is well worth finding a way to fit burial insurance in your budget or your family’s budget.