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Most likely you’ve arrived at my website for guidance on purchasing life insurance to cover burial costs.
Are you worried that you or a loved one’s death may leave a financial burden for someone else to pay?
You’re not alone. With skyrocketing funeral and cremation costs, more people are looking for a solution to cover final expenses and get peace of mind.
If this sounds like you, then you’ll enjoy today’s article, all about…
The Ultimate Guide To Getting Life Insurance To Cover Burial Costs
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the compete presentation on life insurance for burial costs. Enjoy!
Here’s An Overview Of Today’s Topic:
- Why Life Insurance For Burial Costs?
- Burial Costs Breakdown
- Life Insurance Plans For Burial Costs
- Steps To Getting Qualified
- Burial Insurance Rates, Age 40 to 90*
- Next Steps
Why Purchase Life Insurance To Cover Burial Costs?
Let’s start by discussing the most common reasons why someone would consider buying life insurance to cover burial expenses.
Little To No Savings
The biggest reason folks buy a burial insurance plan? They fear not having enough cash on hand in savings to pay funeral costs.
And fixed-income seniors are most commonly those in fear of not enough money when their final day on Earth arrives.
With over 85% of adults in the USA have less than $10,000 in savings and more than 40% of Americans expecting to retire broke, the need for life insurance to cover final expenses like burial costs is vital.
If you are 60 or older, retired, or disabled, and live month-to-month on Social Security, you’re a perfect candidate to purchase a final expense life insurance plan.
It’s likely you’re worried that you won’t have time to save up enough money to pay you final expenses. And you don’t want that shouldered upon a loved one.
A life insurance plan to cover burial insurance costs is the perfect solution.
As we’ll discuss later, burial insurance plans offer affordable premiums, and the ability to cover funeral costs at any age without fear of outliving the coverage.
These types of policies provide give peace of mind, reducing the fear of passing this expensive burden along to your family.
Coverage For Someone Else
The second reason folks purchase life insurance for burial costs is to insure a loved one.
I regularly deal with adult children wanting burial insurance on their parents.
We’re able to shop around to find a life insurance policy with the best combination of price and coverage for the family.
This is very important because many times parents have health issues and are more difficult to qualify.
Why do adult children purchase final expense life insurance for their parents?
Because (a), the children cannot or do not want to pay for the parents’ funeral bills out of pocket, and (b), the children do not want the stress of negotiating which kid will pay what portion of hte funeral bill.
Money has a way of tearing families apart. And a final expense life insurance plant on your mom or dad can relieve that stressor completely.
You’ve Experienced A Recent Funeral
Many times, a recent death in the family sparks the motivation for purchasing a burial insurance policy.
I teach agents that work for my agency that life insurance is primarily an event-based purchase decision.
People buy burial insurance because the death of a loved one shocks them into the reality of having coverage.
For example, I have spoken to hundreds of widows nationally.
And many did not have burial insurance on their now-deceased husband. So they had to come up with money through other means to bury their spouses.
Having lived through that experience, they want to eliminate that experience so their children won’t have to live through the same struggle.
Also, I work with some people who buy final expense life insurance because they saw a relative who was well-prepared.
They saw how less stressful the funeral service was, and how life insurance allowed the family to grieve without worrying about money.
Love For Family
I’m a father myself.
I own life insurance. And part of that reason I have life insurance is because I have an obligation to protect my family, whether I’m alive or dead.
I do so by working and making an income. But I’m not too blind to see my own mortality as well.
Even though I’m healthy as a horse, I could be the next one to go. Remember, healthy people can die suddenly, too.
Here’s my point. Any responsible person must agree that life insurance is a necessity, especially if you’re worried about not having enough money to pay your funeral expenses.
True love is not words. It’s the action you take.
If you’re a senior worried that your death may bring about financial difficulties to your spouse or children, then getting a life insurance policy to pay your funeral costs is a smart idea.
Peace Of Mind
At the end of the day, life insurance is about your peace of mind, isn’t it?
If you love your spouse and children, it’s only natural to feel discomfort at the pain you could put them through financially.
So buying a life insurance policy to cover burial costs is an act of love.
Breaking Down Burial Costs
The first step to determining how much life insurance you need is to figure out what the expected total cost of your funeral.
We’ll review a an average cost breakdown of funeral and cremation costs from the National Funeral Directors Association.
I will describe how inflation has affecting funeral costs, and provide my personal observations as to what you can expect to pay for your final expense.
Average Burial Service Cost, 2014 vs. 2017
If we look at the National Funeral Directors Associations’ Year 2017 numbers on a burial service, the median cost is $8,755. That’s up roughly $255 relative to 2014.
Line Item Breakdown of Burial Service Costs, 2014 vs. 2017
Average Cremation Service Cost, 2014 vs. 2017
For cremation, the median cost is $6,260. This is for the cremation as well as the funeral service.
Inflation And Burial Costs
Now that you’ve reviewed recent funeral prices, let’s talk about how funeral prices have skyrocketed in recent decades.
According to the U.S. Bureau of Labor Statistics, prices for funeral expenses were 76.61% higher in 2018 versus 2000 (a $5,362.55 difference in value).
In other words, a $7,000 funeral in 2000 costs $12,362.55 in 2018. Yikes!
And here’s another chart BLS chart demonstrating how funeral-related costs have increased at a higher rate than the average commodity inflation.
The solid orange line shows funeral expense increases, and the solid black line shows casket price increases.
Compared to the dotted lines, which show the inflation increases in commodities across the board, funeral expenses and casket prices have skyrocketed.
As you can see, inflation is something to seriously consider.
Any life insurance plant designed to pay for burial costs should factor in an expectation of higher prices when purchased.
Personal Observations With Funeral Costs Since 2011
I got my start as a licensed life insurance agent in 2011.
I’ve talked to thousands of people in my career, most of which have experienced what a funeral is like, with many familiar with the costs.
The truth of the matter is that the ultimate price you pay for a funeral depends on where you live in the country, and who you do business with.
First, the East Coast and West Coast experience higher costs of living. Therefore, it’s likely average costs for a funeral will exceed the median number the NFDA presented.
In reverse, living in the South or Midwest, you will have lower costs of living. Meaning your burial expense may less than the median the NFDA presented.
Second, due to the crazy levels of inflationary price increases, there are new types of funeral homes that focus on discount funeral services that average thousands of dollars less than mainline funeral home prices.
You’ve even seen Amazon and Costco get into the casket business to offset the ridiculous prices funeral homes charge.
Here’s my point.
I believe that funeral price inflation, while real, isn’t as bad as it seems. And if you DON’T want to spend an arm and a leg, there’s likely a discount funeral home that can help you out.
In both Small Town America and metro areas, I’ve seen funeral invoices for the entire service as low as $5,000 to $7,000. These are from discount funeral homes in moderately sized cities.
Do I think funeral prices will go up over the next 10, 20, 30 years? Definitely.
However, because of this upward pressure on prices, you’ll see more funeral home start-ups offering competitive funeral prices, in addition to seeing more people opt for cremation instead of burial.
Cremation Will Become As Common As Burial
Also, my experience with cremation costs tend to be much less expensive than what the NFDA is showing.
In most towns, high-end funeral homes offer cremation packages in the $3,000 range.
Then, you’ll see discount crematories offering no-frill “direct cremations” for $1000 to $1500, which involves only the cremation and the urn. No service, or anything a traditional funeral home offers.
Based on my experience, I would suggest $5,000 in life insurance is plenty to cover cremation.
And if you’re opting for low- to no-frill cremations, that number should do the trick over the next 10 to 20 years, especially since more people now than ever are opting for cremation versus burial.
Bottom line, people are refusing to pay the sky-high costs of funeral expenses and are opting for alternative ways to lower the price.
How much life insurance coverage should you get to cover burial costs?
At least $10,000 to $15,000 should give you enough coverage to account for the potential of inflation.
Remember, you can always buy more coverage later if $10,000 to $15,000 is not exactly in your budget.
A Story About My First Client
I want to share a story that really shaped me as an insurance agent because this was my first interaction with a client in this business.
The moral of this story serves as a reminder as to why it is important that we help our clients to get the best policies when it is possible.
It also highlights why it is important to do our best to help our clients because our actions, as insurance agents, influence more than just our clients’ lives.
It was 2011, the year I started working in this business. It was hot, and I went to see my client who we will call Mr. Jacobs for the purpose of this story.
He lived in a single-wide trailer home in Wildwood, Georgia. His home was very interesting. I remember that there were multiple fish aquariums, and there were also wasps, which, truthfully, made me fear that I was going to be stung at any second.
I asked him, “Why did you request to speak with me about life insurance?”
He replied by telling me the story of his father’s death. It was a key experience for him that taught him the importance of life insurance that I would like to share with you.
One day, his father told Mr. Jacobs that he took a policy with Colonial Penn to cover his final expenses. He wanted to do the right thing by his family, and he didn’t want to put any financial burden on them.
He was told that the Colonial Penn plan would successfully cover any natural and accidental death immediately, and he wouldn’t need to pay for any of the costs of his father’s funeral.
This gave Mr. Jacobs and his siblings peace of mind, and they were happy that their father was going to be taken care of when he was gone.
12 months later, Mr. Jacobs’ father passes away from a stroke, and no one saw it coming. They were devastated.
Eventually, they realized they were going to need to pay for their father’s final expenses. They got his policy and gave it to the funeral home.
Then, something else that no one saw coming happened.
The funeral home declined the policy, saying it would not cover the costs of their father’s funeral.
My client asked the funeral home, “How could this policy not pay out? It says clearly here that it’s good for $10,000 in coverage when our dad passes away. Why doesn’t it cover the costs?”
The funeral director informed Mr. Jacobs that this was a guaranteed acceptance plan, which means, by design, that the policy would only cover the premiums paid in, plus 7% interest at that time. This only added up to about $600, which wasn’t nearly enough to cover his father’s funeral.
To make sure his father got the funeral he deserved, Mr. Jacobs decided to take out a second mortgage on his home, putting him in debt.
His brother also borrowed money for their father’s final expense, which he was still paying at the time Mr. Jacobs relayed this story to me.
The story was so impactful. It really reinforced why it is necessary to work with a broker that represents much more than one single company.
Brokers have a variety of life insurance companies and a multitude of options that they can shop before coming to the right combination of price and coverage.
Mr. Jacobs’ father only thought he had this option. He believed that Colonial Penn made everybody wait the two full years for natural death coverage.
Sadly, it is likely that if he had worked with a broker, like Buy Life Insurance for Burial, he could have gotten first day full coverage. This would have changed his life and his family’s, too. His death would have had a totally different economic outcome.
I share this with you because I want you to know you have options. You don’t want the same thing to happen to your children when you pass away. Sadly, this is something that happens more often than not, but you can prevent it by getting in touch with a broker today.
Life Insurance Plans To Cover Final Expenses
Now that you understand the nature of burial costs, let’s discuss the different life insurance policies available that cover burial expenses.
First things first…
All life insurance is NOT the same.
Just like there are different types of automobiles, they are different types of policies. Some are better than others in certain circumstances.
We’re going to cover the most popular forms of life insurance to cover burial costs:
- Permanent coverage
- Temporary coverage
- Pre-need coverage.
So let’s jump in and take a more in-depth look.
Permanent coverage is simple.
As long as you continue making premium payments, your policy never cancels due to age or health.
Another way to describe permanent life insurance is the more common term, whole life insurance.
Here are the major benefits of whole life insurance:
The price NEVER increases.
When you’re quoted a premium for whole life insurance, that rate is locked in.
It’s certain as the sunrise. There’s never the worry of a future price increase like with other life insurance.
Coverage NEVER decreases.
With whole life insurance, the amount of coverage never reduces.
As long as you keep the plan, the amount of coverage stays the same.
CANNOT be cancelled due to age or health.
Whole life insurance policies state that you cannot be canceled due to age or health.
As long as you continue paying premiums, your policy stays in force, regardless of your age or health.
May get first-day full coverage for natural and accidental death.
For most, your whole life insurance policy will cover you from the first payment if you die by natural or accidental death. Your coverage is fully comprehensive.
However, if you’ve experienced significant or recent health problems, you may only qualify for guaranteed acceptance life insurance. These plans fully cover you for natural death after your policy is in effect 2 years.
If you work with a broker like us at Buy Life Insurance For Burial, we can shop the major carriers to try to find the best quality burial insurance available. We try our best to avoid a two-year waiting period policy as much as possible.
With burial insurance policies, no exam is is required.
It’s optional with some life insurance companies. But many times, it’s not even necessary. Most burial insurance companies don’t require an exam.
Peace of mind
That’s very appealing, especially for people who’ve purchased life insurance in the past, only to have it increase in price or cancel at a certain age.
Bottom line, whole life insurance is perfect for covering burial costs. Pay your premium, and you’ll have coverage to your final day.
Term Life Insurance For Burial Costs
Now let’s talk about term life insurance coverage.
Term life insurance only lasts a pre-defined period of time. Once the policy reaches the end of its term, it either goes up dramatically in premium or simply cancels.
In a nutshell, term is short for terminating coverage.
If you look at life insurance industry statistics, only about 1% of term life insurance policies actually pay out.
Here lies the problem…
Your life insurance policy should match not only your budget, but your individual insurance goals.
If we agree that term life insurance is temporary… how is a temporary policy the best solution to the permanent problem of death we all face?
Putting a band-aid on a gunshot wound may stop the bleeding temporarily. But removing the bullet, repairing internal damage, and stitching up the wound is the ONLY solution that really matters in the long-run.
Term life insurance is the band-aid life insurance solution to covering burial insurance.
It provides good coverage, but only for a set period of time. If you live beyond it, which most will, you’re up the creek without a paddle.
Because some folks are TOTALLY motivated by price and price alone. And many simply do not read the fine print, not understanding how term life insurance works.
Pre-Need Insurance For Burial Costs
Let’s talk about pre-need life insurance for burial costs.
Pre-need life insurance is a unique product sold through the funeral home.
It’s a permanent plan like whole life insurance.
You can pay a one-time lump sum payment to pay the whole thing off or you can set up to a multi-year payment plan up to 10 years in length.
Pre-need insurance insures you if you die prematurely before paying the plan off.
One of the biggest advantages of pre-need life insurance plan is the plan locks in many items of your funeral expense.
Locking in pricing eliminates inflation risk, giving you control of how exactly you want your funeral service to look like.
Pre-need insurance is portable from one funeral home to the next
Let’s say you live in New York in the summer, Florida during the winter.
Chances are you could die in either state, right?
As long as you have a funeral home that accepts your pre-need policy, you don’t have to worry where you’ll end up dying. And most funeral homes accept pre-need plans initiated at other funeral homes.
Pre-need plans are costly
So why don’t most people purchase a pre-need plan?
I think the number one reason I and others think is due to the total cost.
There’s a give and a take to everything in life. And pre-need plans are no different.
For getting rid of the price inflation risk, you’re going to pay a substantially higher amount towards your pre-need plan compared to the actual cost.
If you look at many of the pre-need plans that are 5-, 7-, and 10-years in length and add up the total premium expense, you’ll pay close to double in premium compared to what the funeral actually costs.
For example, if your funeral bill is $10,000, expect to pay close to $20,000 in insurance premiums.
Pre-need is only good for the burial
With pre-need plans, the funeral home is the only beneficiary. Your family gets nothing.
That’s why many opt for a life insurance policy, not only to pay burial costs, but also to leave money behind, replace income, or pay down debt like a mortgage.
And if you’re looking for a burial policy at a more reasonable rate with more flexibility, then a final expense life insurance policy makes more sense.
What’s the best insurance option for burial costs?
Here’s my opinion as a final expense insurance agent since 2011.
Some of you might be tempted to buy term insurance due to a lower cost than whole life insurance.
And the truth is that SOME insurance is better than NO insurance.
But with enough time and a long life, you may outlive your term life insurance and have to face the same question again.
Except you’l be older, meaning you’ll pay more for whole life insurance.
And who’s to say you’ll have your good health? Maybe you’ll come down with a chronic illness.
It could mean that you can’t qualify for burial insurance coverage when you most need it!
This is why I like whole life insurance as my first choice to pay for burial costs.
If you like peace of mind, and never want to risk outliving your policy, whole life insurance is the solution.
Now, there are cases when I will help my clients get term insurance if that’s what they absolutely want.
But I sure as heck let them know that whole life insurance is the BEST solution to cover burial costs.
Death is a permanent problem, and whole life insurance is the permanent solution.
Lastly, if you like the idea of pre-planning and don’t mind paying a high premium for the benefit, then a pre-need plan may be right for you.
5 Reasons why you should buy burial insurance
1. You cannot outlive it
Many insurance plans, like life insurance, have an expiration date. Luckily, burial insurance isn’t like that. It is designed to make sure that you are covered throughout your entire life. It will never cancel due to age or health.
2. You can afford it
Having a burial insurance policy can be the perfect solution for you if you are on a fixed-income. If you’re not, it is still a great choice. When you work with Buy Life Insurance for Burial we can shop the most competitive companies in your area to customize rates to your budget.
3. Your rates will not increase
This is one of the greatest benefits of getting burial insurance. When you get burial insurance that has a whole life insurance element involved, your rates are guaranteed to stay the same. This is regardless of your age and health. For more information on this, feel free to message us here at Buy Life Insurance for Burial.
4. You won’t have to worry about increasing final expense costs
This point ties into the previous one. Currently, costs for final expense are increasing. About 20 years ago, burial cost $6,500. Now, that price point has increased up to $8,700. With burial insurance that stays at the same rate, you don’t have to worry about those ever-escalating costs.
You will know that you are covered and how your coverage will be used.
5. You can use it to protect your savings
Burial insurance is a fantastic way to make sure your savings are protected.
For example, without burial insurance, your family might have to use the savings you leave them to cover your final expenses. With burial insurance, it is guaranteed that your final expenses, like a funeral and all of its included costs, are covered.
Steps To Getting Qualified For A Life Insurance Policy
Let’s talk about steps of getting qualified for coverage to pay your burial costs.
Exam Or No Exam?
Maybe you’re like many of my clients and wonder if there’s an exam required to get life insurance coverage.
The good news is that exams are optional when getting a life insurance policy to cover burial costs.
And in many cases, all you have to do is complete an application for insurance and let the company pull your medical records to determine insurability.
The exception to this is if you’re purchasing a very large amount of life insurance coverage. We’re talking hundreds of thousands of dollars in most cases.
If that’s the case, the carrier may require an exam, having blood withdrawn as well as a physical.
When I purchased insurance, I opted for an examination because I could secure much more coverage for a better price than opting for a non-medical life insurance application.
In short, exams are useful when you’re looking at very large amounts of coverage. For smaller amounts, usually under $100,000, don’t expect to take an exam.
Agent Or No Agent?
Have you ever wondered if working with an agent means you’ll pay a higher price? Maybe you think purchasing direct from the insurance company will give you a better deal.
Full disclosure: I’m an insurance agent.
And I think working with an agent you can trust is the BEST thing you can do.
It’s important to find an expert who can demonstrate knowledge and capability in helping people like you.
And the truth is, most companies do not allow you to buy direct. And the ones that do, end up costing you the most.
Finding an agent you can trust is really important.
Captive Agent Or Independent Agent?
Let me explain the difference between a captive and an independent agent.
A captive agent works with one life insurance company.
An independent agent has access to multiple insurance companies.
The difference between both comes down to selection.
The more product options a life insurance agent has access to, the better chances you have of getting a fully comprehensive burial insurance policy.
You may not have perfect health. Some companies rate up certain health issues while others do not.
This is why working with an independent agent is the superior choice.
That’s what I do at Buy Life Insurance For Burial. We don’t charge my clients a fee. What I get paid is tied into the policy itself.
Many times our life insurance offer is better than the junk mail and TV commercial insurance. Those companies are overpriced and have poor insurance coverage.
Burial Insurance Rates, Age 40 to 90*
Rates For $5,000 In Burial Insurance
Rates For $10,000 In Burial Insurance
Rates For $15,000 In Burial Insurance
Rates For $20,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
*Burial insurance premiums are subject to underwriting, based on rates as of 8/20/2018, from state-regulated life insurance companies offering final expense burial whole life insurance protection. Understand that in order to potentially qualify, you must submit an application to see if you’re eligible. Rates are subject to change. Give Buy Life Insurance For Burial a call at 888-626-0439 now to see what program you may qualify for.
Next steps to getting a policy
Are you interested in getting a life insurance policy to cover your burial costs?
The process is super-simple. Allow me to explain.
First, you’d contact me and we’d set up a phone consultation. I’ll ask questions about your insurance goals, your health, and what you want out of a life insurance policy.
Then, I’d crunch the numbers and give you a proposal.
If you like what you see, we’d complete application by telephone or through email. No face-to-face meeting required.
After the application is complete, we’ll get either a same-day decision, or a decision within the next 2 or 3 business days.
And that’s it!
If everything sounds good so far, here’s what to do next:
- Call me direct at 888-626-0439 now. Leave a voicemail if I don’t answer. I’m constantly talking with folks all day long and I or my team will call back ASAP.
- Send me a message here if you prefer to start our conversation via email.
Thank you for finishing this article. I hope this information helped! We hope you take away the importance of getting life and burial insurance.
If you need further assistance, allow us to help you accomplish your insurance-related goals. All you have to do is get in contact with us, and we will do the rest.