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Can I buy Final Expense Insurance or Burial Insurance for Parents?

buy parents life insurance

Watching your parents aging is quite possibly one of the hardest things in the world to deal with. You’ll start to notice all of a sudden one day that the people who have cared for you your entire life will now need you to care for them. It can be very challenging emotionally for many people, as well as physically and even financially challenging. If you are facing caring for your elderly parents or an elderly parent, you are certainly not alone. So, how can you care for your elderly parent? 

When such care is coming up on the horizon, it’s very important that everyone involved sits down and discusses who will be caring for your elderly parent, how the parent feels about it, and every other aspect related to the issue. 

Financial planning is useful when it reviews the short-term and long-term future. People ordinarily look at the next couple of years, but thinking about 10 or even 20 years ahead is sensible. You can gradually improve your financial situation, and you can also anticipate costs that may be years away.

As you are looking at possible conditions years from now, you ought to think of expenses that you may incur, even though you are not directly involved. Burial insurance for parents is a means of protecting you from a sizable bill.

Watching your parents aging is quite possibly one of the hardest things in the world to deal with. You’ll start to notice all of a sudden one day that the people who have cared for you your entire life will now need you to care for them. It can be very challenging emotionally for many people, as well as physically and even financially challenging. If you are facing caring for your elderly parents or an elderly parent, you are certainly not alone. So, how can you care for your elderly parent? 

When such care is coming up on the horizon, it’s very important that everyone involved sits down and discusses who will be caring for your elderly parent, how the parent feels about it, and every other aspect related to the issue. 

Financial planning is useful when it reviews the short-term and long-term future. People ordinarily look at the next couple of years, but thinking about 10 or even 20 years ahead is sensible. You can gradually improve your financial situation, and you can also anticipate costs that may be years away.

As you are looking at possible conditions years from now, you ought to think of expenses that you may incur, even though you are not directly involved. Burial insurance for parents is a means of protecting you from a sizable bill.

Can You Get Burial Insurance For Parents?

Can i buy final expense insurance for my parents

Your mom and dad are no strangers to household finances. They supported you as you were growing up and probably helped pay for your college. Your parents can buy final expense insurance coverage, but do they want to do that?

Final expense insurance means that a person has to face his or her mortality. The insured will not enjoy any benefit because the payment usually occurs after this person has died.

Your parents may have other things on their minds besides a burial plot, and reminding them to buy this type of insurance can be a real waste of time. You might want to take on the assignment. It makes sense because if you are a beneficiary, it is going to help you. So, you can buy final expense insurance for parents and be prepared when the time comes. 

Why Buy Funeral Insurance For Parents?

Final expense insurance for parents

Nearly 72% of Americans above 65 years have savings less than $5000, and this amount can’t even cover the funeral costs.  An elderly parent is most likely not bringing any more income, other than social security. 

If their retirement fund has dwindled or they did not have one, their daily expenses will need to be covered. These expenses will include everything, from food to medical costs.

It leaves the survivors in a shaky situation where they need to deal with emotional trauma and arrange funds for the funeral. That’s why buying burial insurance for parents makes sense.

Since parents may have no means to pay their end-of-life costs, you may be stuck with massive bills. Take a policy that covers all these expenses after your loved one passes. 

What Are the Average Funeral Costs?

Burial insurance for parents

Funeral costs are high, and they increase every year. Current statistics say that they can double up every 20 years. From 2009-2012, the average costs increased by 7.4% from $6560 to $7045. Sometimes, it depends on the type of funeral as well. 

Some folks want to be cremated.  The cost is typically in the $4,000-$7,000 range by the time everything is taken into consideration.

Others want a burial.  The cost of that can be in the $8,000-$10,000 range and higher. 

So, the bottom line is you need to seek the right coverage to meet these expenses. But, if your parents want a nicer service, look for policies offering coverage higher than $10,000. 

How Final Expense Policies Work

Final expense insurance can cover the cost of burial and internment. Why should you be concerned about final expense insurance for parents? The reason is that it protects the estate, which has named you as a beneficiary.

The cost of burial can be sizable, and today the price can be well over $10,000. It includes not only the casket but all the expenses surrounding the final internment of somebody. You’re looking at various fees, such as the burial plot, that must be considered.

Ordinarily, the estate is going to handle all those expenses. It means that whatever you inherit is going to be minus of final expense costs. It can delay the estate assets’ distribution because those last rites’ expenses must be paid before you receive anything.

Typically, it is a whole life policy with small coverage, affordable premiums, and no medical exams. You will receive a tax-free lump sum amount to pay off the funeral expenses and other pending bills. Here’s how they work:

  • Fixed lifetime premiums
  • Guaranteed coverage that never decreases
  • Coverage never expires over the lifetime
  • Builds cash value throughout the policy term
  • No cancellation of guaranteed coverage

What Do You Need for Buying Burial Insurance for Parents?

Final expense insurance for my parents

Final expense insurance is life insurance, and the standard rules governing life insurance will apply. These aren’t too rigorous but must be followed.

  • Insurable interest. You are buying a final expense life insurance for parents, and there must be an insurable interest present. Your insurable interest is the loss you may suffer if your parents should pass away. That happens because their estate must pay the burial costs, and you, as the beneficiary, experience a financial loss. Your credibility is not questioned because you are related to the insured.
  • Consent to review medical history. This does not come from you but your parents. The insurance company must be allowed to review their medical history. It doesn’t mean Mom and Dad will have to have a physical exam, but they must answer some questions about their health, and permit the insurance company to review their medical history. You are not able to give that consent on behalf of your parents because of the HIPPA laws. Your parents will have to provide consent.

Can You Get a Policy Without Giving The Insurance Company Consent To Review Your Parent’s Health Data?

You can’t buy a policy offering immediate coverage without answering health questions. But, there’s still an option called guaranteed acceptance plans. 

This final expense insurance does not require medical review for your parents. However, it comes with a waiting period of up to 24 months (N.B. Any insurance that insists on a more extended waiting period is not worth having). If the insured passes away before this waiting period end, the best you can hope for is to get back the entire premium paid plus a little interest.

There is a reason for getting a guaranteed acceptance burial insurance for parents, and it is if they refuse to provide medical information. Keep in mind that you might be paying higher premiums due to their reluctance to share data. 

What are the Knockout Health Questions?

Buying burial insurance for parents

These are concerned with certain health conditions that the insurance company will not cover. These can include cardiovascular diseases, COPDAIDS, and Diabetes. If the insured answers in the affirmative to a knockout question, it almost immediately stops the application process. While some companies will permit a person to apply for a different final expense insurance product, many will not go any further.

Elimination is due to the risk the applicant poses to the insurance company. Insurers do not want to pay claims unless they have to do that. Someone who has a knockout condition increases the probability that a death benefit will have to be paid.

Price Quotes for Buying Burial Insurance

If you want to know the cost of buying burial insurance for parents, here are some price quotes to compare and understand.

AGEFemale
$5,000
Female
$10,000
Male
$5,000
Male
$10,000
45$12.91$22.61$14.32$25.45
46$13.11$23.02$14.69$26.17
47$13.38$23.55$15.11$27.02
48$13.69$24.18$15.58$27.96
49$13.84$24.48$15.86$28.52
50$13.94$24.67$16.18$29.16
51$14.33$25.45$16.75$30.30
52$14.54$25.88$17.16$31.12
53$14.91$26.62$17.70$32.20
54$15.33$27.47$18.41$33.61
55$15.80$28.40$19.15$35.09
56$16.24$29.27$19.83$36.45
57$16.63$30.06$20.55$37.91
58$17.02$30.83$21.24$39.27
59$17.45$31.70$22.01$40.82
60$18.04$32.87$22.98$42.76
61$18.86$34.51$24.29$45.38
62$19.63$36.06$25.55$47.90
63$20.46$37.72$26.86$50.52
64$21.28$39.36$28.17$53.14
65$22.11$41.01$29.48$55.76
66$23.32$43.44$31.27$59.35
67$24.53$45.86$33.07$62.93
68$25.75$48.29$34.87$66.53
69$27.01$50.81$36.66$70.11
70$28.22$53.24$38.45$73.70
71$29.92$56.63$40.78$78.36
72$31.66$60.12$43.06$82.92
73$33.57$63.93$45.61$88.01
74$35.49$67.78$48.18$93.16
75$37.81$72.41$51.37$99.53
76$40.73$78.25$55.04$106.87
77$43.36$83.51$58.42$113.64
78$45.82$88.44$61.53$119.86
79$48.31$93.41$64.72$126.23
80$50.82$98.43$67.93$132.65
81$54.71$106.21$73.10$143.00
82$58.58$113.96$78.37$153.54
83$62.26$121.31$83.31$163.41
84$65.88$128.55$88.24$173.28
85$69.55$135.90$93.18$183.15
86$88.75$174.17$112.08$220.83
87$95.00$186.67$122.92$242.50
88$100.83$198.33$133.75$264.17
89$107.08$210.83$144.58$285.83

How Can You Find the Best Final Expense Policy for Your Parents

Best Final Expense Policy for Your Parents

We suggest that you investigate buying final expense insurance for parents as soon as possible. There are two reasons for acting now.

  1. It gets more expensive, the older your parents become. You only must look at the rate schedules to realize that if you delay purchasing a final expense policy for one or two more years, it will result in your paying hundreds of dollars more annually.
  2. The health of the insured. Your parents may be in excellent health right now, but if there is a change in the future, it will affect how much it will cost to buy final expense coverage or if your parents will even be allowed to have it.

We recommend that as you begin the shopping, concentrate on the financial stability of the insurance company (An A rating from AM Best is a good indicator). The company should be able to provide as much coverage as soon as possible that you might need. We have one final recommendation for you to think about as you begin your search.

There are many types of final insurance products, and it is easy to get confused. You genuinely do not want to make a mistake and get the wrong policy, which provides the wrong type of coverage at a high premium.

It makes sense to take advantage of an independent insurance agent. This is a professional who deals with insurance companies daily and understands final expense insurance policies. An independent agent represents several insurance carriers and can help you find the right burial insurance for parents.

Processing the Application

You have two easy choices.  The policy can be signed by both you and a parent by either voice signature or email signature, either only takes minutes.

Email Signature

If an insurance carrier allows applications through email signature, they will collect the information and ask some formal health questions. After gathering the information, the agent will submit it to the carrier’s system, and you will get an email to review the application before the final submission. There’s no paperwork, and the process is finished within ten days.

Voice Signature

You may also apply and sign the application over the phone after answering some health questions. Your agent will remain in the conference with you and the insurance company. The carrier will review the information on the call and take the signature via voice. You have to say “Yes, I Agree,” and it’s done. 

Be assured that any personal information is kept confidential between them and us.

Our primary objectives are to identify insurance products that fit your needs and are affordable. We will not promote one policy over another, but you and your parents decide which product is best. Once you make that decision, we will do everything possible to make the purchase convenient and timely.

What If My Parents Are Above 80?

Burial insurance for parents over 80

With burial insurance, it’s never too late to buy a policy for your parents. Some insurance carriers offer coverage for people above 85 years with immediate benefits. If your parents are medically fit and qualified, you don’t even get a waiting period of 24 months. This way, you can buy burial insurance for parents over 80. 

Which Overpriced Insurance Companies to Avoid and How to Choose the Right One?

Final expense insurance carriers invest a lot of money in marketing campaigns, often targeted to your parents. Some use the endorsement of celebrities, and others rely on the reputation of their corporate brand. The advertising doesn’t mean the insurance companies are unethical, but we suggest that you don’t get blinded by the glitz.

You must concentrate on the quality of the insurance product, and it provides the needed coverage at an affordable price. If all the slick marketing does not deceive you, your eyes are better focused on some of the inherent obstacles to buying good final expense insurance for parents.

Here is the problem with companies like State Farms.  Usually, they just offer State Farms.  If State Farms has high prices in a certain state (they are very high in all 50 states), that’s your only option.

Again, the insurance carriers, like Mutual of Omaha, want to know that everyone is on board with the idea and see that you have one of your parents’ children, will be paying for the coverage.

Warning:  Be very careful of coverage being offered on T.V. by carriers like Colonial Penn, who utilize Alex Trebek as their celebrity spokesperson.  While Colonial is an excellent carrier with good coverage, their policies can be pricey and have that dreaded two-year waiting period for full coverage.

Companies like Lincoln Heritage have the highest premiums on the market, and the underwriting is another factor working against them. They don’t accept most of the health conditions that other carriers do. Plus, there’s a two-year waiting period. 

And remember, Colonial Penn was founded in 1968.  Again, a quality carrier, but Mutual of Omaha, one of the most popular carriers in the country we work with frequently, was founded over 100 years ago and survived the Great Depression unscathed.

Buying a final expense insurance policy is not impossible, but it helps to get some good advice on how to do it. We are of service and here to help you make the best decision for your loved ones.

Gary P. Cubeta

1-800-400-8319

Insuranceforfinalexpense.com

(Serving Americans In All 50 States)