The senior population is growing exponentially and along with an aging population comes the need to examine funeral insurance plans available. Funeral insurance plans are becoming a staple item for many seniors because they want to budget in the financial protection needed so their families aren’t having to pay for expensive burial costs when they die. Planning ahead provides peace of mind knowing your needs will be handled and there will be the finances to cover the funeral & burial expenses. There are a several options regarding funeral insurance plans and Assurance Life can help you through the process.
What are funeral insurance plans?
Funeral insurance plans are a type of life insurance intended to pay for funeral costs, memorial services, paperwork and filing fees, and other final expenses upon a person’s death. This type of funeral insurance with no exam is a whole life insurance plan meaning it covers the insured for their whole life! It can never be canceled as long as the monthly premium is being paid. Another feature of funeral insurance plans are that the monthly premiums are guaranteed never to be raised regardless of age or health.
Funeral insurance plans should not be confused with prepaying for a funeral. Prepayment through a funeral home does not provide the same benefits as a funeral insurance plan. Prepaying for a funeral means only certain parts of the funeral expenses are paid for and it doesn’t provide any flexibility if wishes change or financial needs go beyond a basic funeral. This is where a funeral insurance plan is more beneficial because these types of burial insurance policies provide a designated cash benefit that the beneficiary can use for any final expense needs.
How do funeral insurance plans work?
Funeral insurance plans are offered usually by insurance brokers such as Assurance Life. We work with numerous companies that specialize in whole life insurance for customers who want to put a plan in place to pay for funeral expenses so their family won’t have a financial strain upon their death. The first step is a brief application gathering some basic information and a medical questionnaire with only YES and NO questions- nothing lengthy or complicated.
After that is submitted, we match up your age and health profile with a company that is a perfect fit. By comparing numerous companies, we are able to get you the highest plan amount at the lowest monthly payment. Approval is usually issued within 1 hour to 1 day at the most and 90% of clients are able to get immediate coverage when the first monthly payment is made.
How much funeral insurance do you need?
Funeral insurance plans are available in amounts ranging from $3000 to $40,000. As with any purchase, there is a wide range of funeral options and individual needs that families have which impact the amount of funeral insurance that is appropriate for your situation. The average burial insurance policy is $15,000 which covers funeral expenses in most states. Assurance Life can help you determine the average funeral cost in your area and bring to mind other expenses you might not be thinking about such as outstanding debts you wish to have paid, legal expenses of closing out paperwork and transferring ownership of belongings, or even how you can leave a small sum of money to a grandchild for college or other needs.
These factors all contribute to how much funeral insurance you need. The last thing you want is to go to the trouble of putting a life insurance plan into place and then not have it be enough to pay for the final expenses you will have. Let us help walk you through the process and make sure your funeral insurance needs are met.
Can everyone get a funeral insurance plan?
EVERYONE ages birth through 89 years old is eligible for a funeral insurance plan. Sometimes parents and grandparents buy life insurance for children which get started at such a young age they grow in cash value and are guaranteed for life at the lowest monthly rates possible. Other times people on the other end of the spectrum are helped because they haven’t had any life insurance in place to help their family pay for the thousands of dollars that funerals and final arrangements cost so funeral insurance plans can be put into place for folks way into their 80’s if needed. Regardless of your stage of life, Assurance Life can help you determine the best whole life insurance plan to meet your unique needs.
Is everyone approved for funeral insurance plans?
If you are between ages 50-89, everyone is approved for some type of funeral insurance plan. There are two main types of approvals- Day One preferred coverage and Guaranteed life insurance. Day One coverage is just what it sounds like- immediate coverage when the first payment is received. Assurance Life helps about 90% of our clients get preferred coverage. This type of coverage is for folks ages birth through 89 years old if they qualify based on health. Again 90% of people are eligible for this type of funeral insurance plan. Some clients, about 10%, who have had more serious health issues, are not approved for preferred coverage so instead, they qualify for a Guaranteed acceptance insurance plan.
What is a guaranteed issue plan?
This plan is a type of funeral insurance plan where approval is GUARANTEED, regardless of health history. Once again, this is burial insurance with no health questions. There is a narrower age range of eligibility for this plan. You must be between 50-85 to qualify for guaranteed issue. Assurance Life knows what each funeral expense insurance company looks for with their plans and 9 out of 10 times, we can get you Day One coverage. But in those cases where the health conditions prohibit approval, we can still get you the peace of mind with a guaranteed issue funeral insurance plan. The main difference with this plan is that there is a two year waiting period before the death benefit would be paid out.
Thankfully, if anything were to happen in that two year waiting period, all premiums are refunded, plus 10% interest. Also, if death were accidental, the benefit would be paid out at 100%, even in the first two years.
What’s next? There is no time to delay… Assurance Life has multiple funeral insurance plans available for you to make sure your needs are taken care of and your family has peace of mind knowing you wishes can be carried out. Call us at 800-517-0810 with more questions or click to the left to get a free quote from several life insurance companies. Either way, we can get your funeral insurance policy started TODAY!