Burial Insurance For Seniors

Burial Insurance For Seniors – Final Expenses Explained
By Final Expense

If you care for an aging person, or if you are a senior citizen yourself, then you have probably noticed ads for burial policies. These are also called financial expense insurance. The offers look attractive because they promote a way to take care of funeral expenses by making affordable monthly payments. If you have done any research on the price of funerals, you know that they average around $8,000, and can cost much more. Beyond just the burial expense, when somebody pass away, many family members have to travel on on little notice, and that can get expensive. The departed may have left some debts or other affairs to be settled, which is another thing to deal with. Nobody likes to think about the death of a loved one. However, this is a very stressful time, and a little prior planning can relieve a lot of pressure.

These types of policies are, simply, types of whole life insurance companies that have been designed to be easy to apply for. They have also been designed with older people, usually 50 – 80, in mind. Simplified issue policies ask few health questions, and most elderly people can qualify. Guaranteed issue means that no health questions will be asked. They use a waiting period instead of health questions to qualify applicants. With guaranteed issue, the insured person will have to survive a specified amount of time before the full death benefit can be paid out. Otherwise, the policy will refund premiums plus a specified interest rates. Since the face values are small, every effort is made to keep the premiums affordable.

If possible, look for simplified issue, because the premiums cost less and they payout with no waiting period. However, if the applicant is already very ill, or in a nursing home, then a guaranteed plan is still a no-lose deal. The beneficiary will still collect the premiums plus interest if the insured person passes away before the waiting period, and if not, they will get back the paid premiums plus interest.

Of course, you have other options to plan for final expenses. The money could be saved into a special account. Existing savings could also be placed into an account that is earmarked to pay for a funeral. This is a good option if the money is available because savings can earn interest! The problem is that many older people lived on fixed incomes with limited savings, and somehow, this money tends to get dipped into because of emergencies like medical bills and home repairs.

Funeral homes also sell a product called pre-need or pre-paid burial plans. These work for some people, but may tie you to one funeral home or company. In addition, they will only plan for the actual burial, and not other expenses like travel or debts. Sometimes, clients even have to pay interest on these accounts, and so they may end up costing more in the long run.

There are advantages and disadvantages to these methods, and if you are unsure what you should do, consult with a financial professional. Really, the best option depends upon the individual’s financial situation.

Learn more about Burial Insurance For Seniors Since prices depend upon location, age, and health status, you can use our fast, safe, and free online quote form to compare plans and prices.

http://www.bestquoteus.com/finalexpense.html

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