Burial Insurance, also known as final expense insurance, ought to be part of any senior citizen’s financial planning. The final cost of burying someone may include legal fees that create a larger bill than anyone initially expected. Looking for the right burial insurance policy is a smart idea. In this article, we review the pros and cons of State Farm Burial Insurance.
Burial Insurance, also known as final expense insurance, ought to be part of any senior citizen’s financial planning. The final cost of burying someone may include legal fees that create a larger bill than anyone initially expected. Looking for the right burial insurance policy is a smart idea.
We think an individual must shop around before buying insurance. Please don’t be persuaded by a celebrity or a flashy advertising campaign. There is so much more to buying an insurance policy in the glitz and glitter of marketing.
There are some very good burial insurance policies on the market, and there are some that are downright horrible. You need to do a little investigating. We want to take this opportunity to discuss and review State Farm’s burial insurance. There are some very good things about the policies, and there are some not so good qualities as well.
State Farm Mutual Insurance Company – a Review
This company is a large insurance provider that has been in existence for almost 100 years. State Farm has the A++ rating from A.M. Best, and you cannot get a higher review than that in the insurance industry. Burial insurance is just one of the more than 100 different insurance products that State Farm offers to the buying public.
What Is Best About State Farm Burial Insurance
State Farm burial insurance is a whole life insurance policy and that is good news. You may wonder why because term insurance premiums are lower than those charged by a whole life insurance product. The caveat is the” term” part of the description. A term life insurance policy is only valid for a given number of years and after that, it expires. Some burial insurance products are term policies and they will terminate when a person becomes 80 years old. You then must buy a whole life insurance policy at a substantial premium cost.
The State Farm burial insurance policy will never expire. The monthly payment stays the same from the time you enroll, and the coverage does not increase. Although State Farm will only offer $10,000 worth of burial insurance, there is no waiting period for a qualified individual. The only bad news about State Farm so far is you cannot buy this burial insurance in Massachusetts or Rhode Island, and you cannot purchase this policy when you are older than 80 years.
Benefits of a Whole Life Insurance Policy
The beauty of buying a whole life insurance policy is that the terms are so simple. All you have to do is pay your premium, and the benefits will not go down and the premium will not go up. That is so much better than a term policy that has lots of caveats and can also have a steep increase in premium as the policyholder gets older. State Farm is willing to cover tobacco users, and that means anyone who consumes tobacco or nicotine in any form.
State Farm Mutual Insurance Company, however, is not Santa Claus. That’s why we wanted to offer you this State Farm Burial Insurance review to give you all of the information. You will not get something for nothing, and there are some challenges with owning a State Farm burial insurance policy.
State Farm Burial Insurance Is Pricey
You only have to do some comparison shopping to discover that State Farm is going to charge a hefty premium for its coverage. Yes, you can get a policy if your tobacco user, but you’re going to pay a very steep premium.
You can only get $10,000 worth of burial insurance from State Farm. It may seem like a lot of money, but caskets alone can cost thousands of dollars. You can add to that the cost of the burial plot and the headstone. Even if you opt for cremation or a more straightforward form of burial, you still are faced with legal fees that can be considered the financial Last Rites.
Burial expenses can be high, depending on the state in which you live. $10,000 in some parts of the country is not enough to provide good burial coverage. Nevertheless, State Farm Mutual Insurance will only offer a $10,000 burial insurance policy, take it or leave it.
Here are some other reasons why you might just want to walk away from State Farm.
State Farm is very interested in your physical condition. They also want to know about your prescription history. The number of medical conditions for which they will deny coverage is extensive. Incidentally, the reason they want to know about your medication is to determine if you are taking it as a treatment for one of the prohibited health issues.
Some insurance shoppers might not be too concerned about health issues. After all, the applications of other insurance companies list health problems for which a person who answers “yes” can be excluded from coverage. The difference is that State Farm has a rather long list of health problems which, if you admit that you have, can deny you insurance from State Farm (we want to take a moment to remind you that lying on the application form about whether you have a specific health condition, or undergoing specified medical treatments, can get you into a world of trouble).
Honesty is Really the Best Policy when Dealing with Insurance Companies
One medical condition State Farm wants to know about is whether you have been treated for any form of diabetes. That should be a big warning flag for any senior citizen. Adult diabetes is becoming increasingly more common, and State Farm apparently will not cover someone who has even a mild type of this disease. Moreover, State Farm wants to know if treatment has been within the last three years.
The last three years stipulation is not just for diabetes. They also want to know if you had treatment for stroke, emphysema, or mental disorders. Heart attack and congestive heart failure are also included. State Farm goes one step beyond by even asking if you been treated for drug or alcohol abuse within the last three years.
If a person is currently in a nursing facility, getting home healthcare, or is bedridden or confined to a wheelchair that individual cannot get a State Farm burial insurance policy. It appears that you will have to be as healthy as a horse to get a State Farm burial insurance policy that has a cap of $10,000. You will be jumping through several hoops to get insurance, which offers bare minimum and at a high premium.
One Additional Word for You About the Premiums with State Farm.
State Farm is not trying to gouge anybody but, realistically, the company must charge higher than usual premiums because of the amount of business they do. State Farm is a large company that processes tens of thousands of insurance claims every day. You can bet the mortgage that State Farm must make payments on a huge number of those claims. Burial insurance has a high risk of mortality; there’s an excellent chance the claim will need to be paid. State Farm is charging those hefty premiums to cover such costs. Furthermore, the long list of medical conditions serves to screen out those whose physical health makes it likely that a claim must receive payment.
Bigger Is Not Always Better
State Farm is an insurance company with a reputation for integrity and financial solvency. People are attracted to it because it is such a big operation. We can appreciate the people sometimes are impressed by the size. Nevertheless, there’s no reason to think that State Farm offers the best burial insurance because it is enormous.
Anyone who looks at the medical issues used to exclude applicants will notice that nearly every health problem a typical senior citizen has is used against that person. A tobacco user can indeed get a State Farm policy, but somebody who has a form of diabetes is out of luck. The underwriters at State Farm will only take a risk on someone is very healthy.
Where is the Advantage?
The high premiums would be acceptable if you can get more coverage, but State Farm limits a burial insurance policy to $10,000. Honestly, if you are an individual with reasonably good health, then you are paying for minimal policy coverage. There are other insurance companies who, although they have medical exclusions, will either grant the successful applicant more coverage or a lower premium or both.
It is a rule of thumb in insurance that healthy people are paying for the risk incurred by covering a sick person. A healthy senior citizen should take advantage of his or her well-being. There are more opportunities for burial insurance coverage that is affordable and has better coverage. It does mean that a person must do some shopping.
Look Closely at the Fine Print
A smart buyer is going to go beyond the summary pages and take a close look at the underwriting of a policy. Any age restrictions will be the first stop. Somebody who is over 80 years old will quickly discover that he or she cannot buy the burial insurance policy.
The health exclusions are going to be the next point of examination. Understand that if you answer “yes” to any of the medical condition questions, you are either automatically excluded or required to pay a higher premium. That is bitter medicine to swallow, but it is better to find out right away if your physical condition or medical treatments prevent you from buying the policy.
Keep in mind that term insurance premiums are lower than the whole life, but the coverage ends when you reach a certain age. You are then forced to buy another policy at a much higher premium. The whole life policies will never expire, and the premium does not change. It is our opinion that whole life insurance is the best burial insurance policy.
Comparison Helps You Make the Right Choice
It isn’t difficult to compare the premiums of several insurance companies. Before you start doing that, check to be sure that the burial insurance is available in your state of residence. Insurance companies do not sell burial insurance in certain states because of the high cost of doing business there. The policy will expressly point out those states where you cannot buy coverage.
You may be pleasantly surprised at what you find out. You can discover that Company B has better coverage than Company A and at a lower premium. You should always keep in mind that you are looking for what best suits your given situation. It requires taking into consideration what will be your anticipated burial costs, including any legal fees.
Insurance Agents Make It Easier
We admit that a person can do all the research alone. However, it is going to be a very tedious task. You will have to go through the information on several insurance companies to make a good comparison. You can expect to read through some very dry material, and you had better know the insurance language, or you will be lost.
Fortunately, there are insurance agents who can lighten the load. These professionals have the proper tools, the right software, and the search engines necessary to look through hundreds of policies to find one that suits your purposes.
An Independent Insurance Agent is Paid by Insurance Companies and Works for You.
A meeting with the agent helps define what you are looking for in a coverage. This means not just affordable premium but also the coverage you need to meet expected final costs. The agent then goes through the information he or she has and selects those policies that most closely fit what you are looking for in insurance. You then may decide the policy that best suits you.
You should be ready for this meeting with the agent and know exactly what you want. Furthermore, you should express what your medical conditions are to the agent and understand that information is kept confidential. The questions are asked to verify a policy that will cover you despite any medical issue or treatment you might have. The agent also answers any questions you might generally have.
How Insurance for Final Expense is Different
We work with people to help them find the right burial insurance. We are willing to sit down with you and explain our services and tell you how we will go about finding what you need. We take the meeting is an opportunity to also educate folks about burial insurance. You will know more about this insurance product when you are finished meeting with us than you ever knew before.
We invite you to contact us at your convenience. We can arrange a face-to-face meeting without any problem and, with your permission, commence looking for the kind of insurance that will cover those last expenses. We believe that we can provide great assistance and deliver for you the insurance product that best suits your situation.
Gary P. Cubeta
(Serving Americans In All 50 States)