Direct to Consumer Burial Insurance Reviews
Written by Daniel Ray, Life Insurance Expert |
✅
Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
When planning for end-of-life expenses, finding the right burial insurance is crucial. Many seniors turn to direct to consumer burial insurance reviews to make an informed decision. However, while direct to consumer carriers offer convenience, they often come with higher costs and limited coverage.
This article explores why shopping with a broker can provide better options, combining price and quality to suit your needs.
Understanding Direct to Consumer Burial Insurance
Direct to consumer burial insurance allows you to purchase a policy directly from the provider, without intermediaries. While this might seem straightforward, these policies often come with higher premiums and restrictive terms.
In addition, if you have a pre existing condition, you may be declined whereas shopping with a broker the will find you the provider that specializes in your health impairment. These are companies like Colonial Penn, AARP, AAA, and Globe Life. Remember, they are a “for profit” business, and spend a lot of money on marketing which YOU the consumer pay for with your premiums.
Key Features of Direct to Consumer Burial Insurance
When considering direct to consumer burial insurance, it’s essential to understand its key features:
- Coverage Details: Policies typically cover funeral costs, burial expenses, and sometimes unpaid medical bills. However, coverage might be limited compared to broker-sourced policies.
- Typical Premium Costs: Premiums are often higher due to the lack of competitive shopping.
- Customization Options: While some customization is possible, options are usually more limited than those available through brokers.
- Simplified Underwriting: Direct ot consumer providers want healthy individuals, both common health impariments and medications may cause a decline.
Key Features of Shopping with a Broker
Getting properly shopped by an experienced broker will give you an opportunity to state your case to dozens of highly rated providers to isolate the best option.
- Isolate Rate Class: Answering a few questions and giving your medication list will give the broker the opportunity to match you up with a provider that is lenient to your history.
- Matching The Best Option: Once your rate class is determined, then you will be matched up with the best option available based on price, quality, and coverage amount.
- Getting The Best Coverage For You: Once your rate class was isolated and the provider was found that is best for your history, then you have the best coverage available.
Burial insurance is not a one size fits all. Remember, this is the first monies your family will receive when you pass away. Getting a policy tailored to YOU and your history is always best. Our CORE Providers include Mutual of Omaha, AETNA, SBLI, and American Amicable.
In addition, another 14 highly rated providers that are “Niche” based for pre existing conditions.
Comparing Providers
Choosing the right provider is crucial. Brokers have access to top rated burial insurance companies and can compare plans to find the best fit for you. This contrasts with the limited options from direct to consumer providers.
How to Choose the Right Burial Insurance
When selecting a policy, consider factors such as cost, coverage, waiting periods, and customer service. Brokers provide tools and resources to compare options, ensuring you make an informed decision.
Addressing Common Concerns and Questions
Seniors often have specific concerns about burial insurance. Here are the most common questions and their answers, highlighting the differences between direct to consumer policies and broker-sourced options:
Is this insurance legitimate?
Yes, direct to consumer burial insurance is legitimate, but not always the best value. Brokers can offer policies from highly-rated providers with better terms and prices.
How much will this cost me monthly?
Direct to consumer plans often have significantly higher premiums. For example, a senior might pay $60 per month directly, while a broker might find a similar policy for $30 per month.
Here is a comparison for both a male and female from ages 50 to age 90 for $10,000 in Simplified Issue Whole Life. This will be the top 3 direct to consumer prices versus our best price for that age.
Male, $10,000 in Whole Life
| Age |
|
|
|
|
|---|---|---|---|---|
| 50 | $59.70 | $33.00 | $58.00 | $27.35 |
| 55 | $69.65 | $42.00 | $58.00 | $32.78 |
| 60 | $89.55 | $50.00 | $62.00 | $41.74 |
| 65 | $109.45 | $62.00 | $73.00 | $53.75 |
| 70 | $149.25 | $81.00 | $97.00 | $69.23 |
| 75 | $149.25 | $100.00 | $115.00 | $96.58 |
| 80 | $149.25 | $122.00 | $164.00 | $134.16 |
| 85 | $149.25 | N/A | $164.00 | $192.49 |
| 90 | N/A | N/A | N/A | $354.11 |
|
Colonial Penn: 107% of premiums during first 2 years AAA: 130% Premiums during first 2 years |
||||
Female, $10,000 in Whole Life
| Age |
|
|
|
|
|---|---|---|---|---|
| 50 | $49.75 | $24.00 | $46.00 | $21.78 |
| 55 | $59.70 | $30.00 | $46.00 | $26.26 |
| 60 | $69.65 | $36.00 | $48.00 | $32.60 |
| 65 | $79.60 | $47.00 | $55.00 | $41.01 |
| 70 | $99.50 | $62.00 | $76.00 | $52.03 |
| 75 | $129.35 | $79.00 | $102.00 | $71.64 |
| 80 | $149.25 | $92.00 | $118.00 | $97.50 |
| 85 | $149.25 | N/A | $118.00 | $131.66 |
| 90 | N/A | N/A | N/A | $299.77 |
|
Colonial Penn: 107% of premiums during first 2 years AAA: 130% Premiums during first 2 years |
||||
Are there any hidden fees or charges?
Legitimate providers will be transparent, but direct to consumer plans can include fees not present in broker-sourced policies. Brokers ensure you understand all costs upfront.
Will my premiums increase over time?
Direct to consumer policies often have variable premiums. Brokers can help you find fixed-premium plans, offering stability over time.
What does the policy cover?
Direct to consumer policies might have limited coverage. Brokers can offer more comprehensive plans tailored to your needs.
Is there a waiting period before coverage begins?
Many direct to consumer policies have waiting periods. Brokers can find options with immediate coverage or shorter waiting periods.
How easy is the claims process?
Direct to consumer claims processes can be cumbersome. Brokers provide policies with streamlined, customer-friendly claims procedures.
Can I qualify if I have pre-existing health conditions?
While direct to consumer policies accept health issues, brokers can find better-suited plans for those with pre-existing conditions.
How do I know I’m getting the best deal?
Brokers compare multiple providers, ensuring you get the best combination of price and quality, unlike the single-option approach of direct to consumer policies.
What happens if I outlive the policy term?
Direct to consumer policies often have strict terms. Brokers can find renewable or convertible options, ensuring continued coverage.
Can my family easily access the benefits?
Broker-sourced policies often have clearer, more accessible benefit processes, providing peace of mind for your family.
How does this compare to other types of life insurance?
Burial insurance is typically easier to obtain and has lower premiums, but broker-sourced plans offer better value and coverage compared to direct to consumer options.
Is my policy customizable?
Direct to consumer policies have limited customization. Brokers provide more tailored plans to meet your specific needs.
What if I change my mind after purchasing?
Direct to consumer policies may have strict cancellation policies. Brokers offer more flexible options and better customer support.
Are there reviews from other seniors like me?
Reading reviews from other seniors can provide insights. Broker-sourced policies generally receive higher satisfaction ratings due to better terms and support.
Conclusion
While direct to consumer burial insurance offers convenience, it often comes at a higher cost with limited coverage. Shopping with a broker provides a better combination of price and quality, tailored to your specific needs.
Always read direct to consumer burial insurance reviews, but consult with a trusted broker to ensure you make the best choice for your future.
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FAQ
It’s a policy purchased directly from the provider, covering end-of-life expenses but often at higher costs.
Direct to consumer policies are typically more expensive than those found through brokers.
Direct plans may have fees not present in broker-sourced policies. Brokers ensure transparency.
Direct plans often increase over time, while brokers can find fixed-premium options.
Coverage is usually more limited in direct plans. Brokers offer comprehensive options.
Direct plans often have waiting periods. Brokers can find immediate coverage options.
Brokers can find better-suited plans for those with health issues.
Broker-sourced burial insurance offers better value and coverage than direct plans.
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