If you’re wondering whether it’s even possible to get quality burial insurance at a decent rate for a parent over 80 years old, then this is the right article for you!
This post will discuss how find to the best burial insurance policy for your mother or father aged 80 or older.
Let’s get started.
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Before you begin, you should establish exactly what you want the insurance policy to accomplish. But first, let’s talk about why sons and daughters purchase burial insurance for their parents.
The main reason, of course, is to cover final expenses.
Information released by the National Funeral and Cremation Society shows that funeral expenses, on average, have increased by 250% over the past 30 years.
A $12,500 funeral now would have cost $5,000 back in 1986, which just goes to show how important it is to have burial insurance.
Even the cost of cremation continues to escalate as more and more families are opting to cremate their loved ones instead of burying them.
So, how much coverage should you get? Well, the National Funeral Director Society states the average burial as of 2020 is approximately $9,000 (depending on where your parents live).
Personally, I’ve seen funeral costs vary from the amount above to $9,000.
Please keep this variable in mind when you decide how much coverage you want.
My advice is to always play it safe (if your budget allows) and purchase more coverage than you need.
However, if you’re on a budget and can’t afford what you need, it’s still a good idea to get some coverage, even if it doesn’t cover everything.
Sometimes children take out burial insurance for their parents because they need to pay off additional debts that their family has accumulated.
For example, maybe your dad’s car or credit card needs paying off or there are medical bills to cover.
If you are trying to cover debt and are also concerned about final expenses, burial insurance can give you peace of mind in knowing you won’t be left owing money during a difficult time of loss.
At Buy Life Insurance For Burial, we can help you secure quality burial insurance for your elderly parent over the age of 80.
However, we cannot do this without their consent – an issue that most people don’t understand. Let me explain.
As an adult, you have the right to accept or deny another person access to your health records.
This includes approval for insurance coverage which often requires access to health records.
In fact, it’s illegal to take out life insurance on somebody else without their consent.
If you decide to call us, you’ll need to have your parent’s approval before we can go forward with the application process.
Unfortunately, we’ve seen it happen time and time again where the kids are raring to get insurance for their elderly parent, but the parent in question is just flat out not interested.
So please, before you do anything, talk with your parents. Help them understand what you’re concerned about.
And, hopefully, they’ll understand and agree to sign off on the policy.
I like to explain to my clients that not all insurance is the same.
Some life insurance policies will be more suited, given the client’s circumstances.
The primary types of life insurance you will encounter when looking for a policy to cover your parents will be term, whole life and universal life insurance.
In short, term insurance terminates. This makes it increasingly difficult to get term insurance coverage for an elderly individual.
Even if you manage to get approval, many term insurance policies for people aged 80 or older only last five to 10 years.
The price for term insurance at 80 or older is also extremely high. Most of the time, we do NOT recommend term insurance for parents aged 80 or older.
Universal life can sometimes make sense if the client is in excellent health. Plus, the policy can be designed to last much longer than the standard term length.
It’s normal to secure a universal life policy for parents aged 80 and older with a 10 to 20 -year term that, in most cases, lasts the entirety of the parent’s life.
However, there are two main issues with universal life plans:
- They’re very expensive
- They’re very difficult to qualify for
Your parent will have to submit medical examinations, blood samples, and do a physical exam to apply for the policy. And there’s no guarantee they’ll be accepted.
That’s why we believe that for the vast majority of parents aged 80 and older, universal life plans are not an appropriate solution.
Whole Life Insurance
Finally, let’s discuss how whole life insurance works. Whole life insurance is our preferred choice for elderly parents. And here’s why.
Unlike term insurance and sometimes universal life insurance, whole life insurance premiums never increase and (as long as you keep up with payments) never cancel due to age or health.
Plus, you can get first-day full coverage for natural and accidental death.
Many people tend to assume older adults can only qualify for plans that require a waiting period due to their advanced age. This simply isn’t the case.
At Buy Life Insurance For Burial, we offer coverage from day one, even in circumstances where the recipient is not 100% healthy.
When if comes to paying for a policy on a parent, you are allowed to pay the premium yourself even though the plan isn’t for you.
You can set up a monthly bank draft, or you can pay on a quarterly, semi-annual, or annual basis by check.
You could also consider letting your parents set up a payment schedule. This would allow you to pay money to your parents to cover the payment, but the money would be coming out of your parent’s account.
But in our experience, it’s easier if the son or daughter sets up the payment themselves.
We mentioned this briefly in Step #3. You need to decide whether or not you want your parent to take a medical exam.
Most clients we talk to do not want to get an exam. The exam is an exhausting process, and underwriting is extremely tough for people in their advanced years.
Unless your mother or father is unusually healthy for their age, it’s not worth fooling around with.
Instead, we recommend getting simplified issue life insurance coverage.
With simplified issue life insurance, there are no medical exams. All that’s needed is a review of your current medical information and prescription history.
Plus, unlike fully underwritten policies that can take weeks if not months to get approved, a simplified issue policy can get approved immediately with the carriers we have at Buy Life Insurance For Burial.
Before seeking our help or another company’s help, you need to catalog your parent’s health history.
Life insurance brokers need to know what your parent’s health history over the past approximately ten years as well as their prescription history.
Please have this information at hand when you call to help speed up the process.
This step is crucial. Make sure you do NOT get stuck with a “captive agent.”
Captive agents typically represent only ONE burial insurance company, which usually offers overpriced, poor-quality coverage.
Unfortunately, a lot of agents won’t tell you whether they’re a captive agent or not. So, what should you do?
The superior option is to seek out a broker! A broker is the exact opposite of a captive agent.
A broker offers clients multiple options, which is the best way to increase your chance of finding a better deal at a better price.
Moreover, in many ways, a broker is committed to the client first – not the company.
A captive agent will recommend their company’s product regardless of whether it’s the best choice for you, whereas a broker will compare multiple options based on the information you provide.
Let’s say you’ve found a broker and an insurance policy that suits your requirements and your budget.
The next step is to set up a meeting with your broker agent to complete the application.
Most of the new simplified issue whole life burial insurance plans are referred to as verbal authorization plans or electronic applications.
There isn’t a traditional paper application to sign.
However, there is a verbal authorization process where you – the payer – need to approve the usage of drafting your account to cover the insurance premium.
As I’ve mentioned a few times above, there’s no guarantee that your mother or father will be approved for the policy you’re applying for.
The good news is that if you work with a broker from our team at Buy Life Insurance For Burial, you’ll have access to a multitude of carriers for your parent’s to consider.
Let’s imagine you’re trying to secure a high-quality coverage policy for your parent.
Then, we discover during the underwriting process that there’s a high chance it won’t get approved. What should you do?
Do you just cancel the policy altogether? No! Definitely not. At Buy Life Insurance For Burial we teach our agents to always have a backup in place.
Some of the companies we work with ask minimal health questions. These firms can act as great backup options when your first choice doesn’t work out.
Once the policy is approved over the phone, the insured individual will receive the policy in the mail within the next couple of weeks.
Our advice is to sit down with your parent once the document is received to review it or have them mail the policy to you.
It’s really important to review all the information covered in the policy to guarantee that everything discussed over the phone is in the document.
We’ve found that many of our competitors will say one thing and deliver something else. And in most cases, it’s the agent who’s to blame.
We can’t tell you how many times a client has complained about being misled by other insurance firms.
So, make sure you review the policy and double-check that your elderly parent aged 80 or older is covered the way it was explained to you.
I hope our article has helped you understand how to secure high-quality burial insurance for your parents aged 80 or older.
If you’re interested in working with us and would like to find out more, you can apply for a free, no-obligation quote. It’s very simple!
Call us directly at 888 626 0439 if you would like to speak to a member of our team. We can run a quote for you in under ten minutes and there’s absolutely no pressure to accept.
We’ll explain how it works and let you decide if it makes sense for you.
To submit a quote request online, you can click the “quote request” button. Then, fill in your information, and we’ll let you know what your options are via email, text, or phone.
Feel free to comment on this article below if you have any questions. Thank you for reading!