Buying Burial Insurance For Parents In 2023: A Simple Guide
Posted in Burial Insurance For Seniors last updated on March 12, 2023Burial insurance for parents is a type of insurance policy that provides financial protection to parents and their families by covering the costs associated with a funeral and other final expenses.
In this comprehensive guide, we’ll take a closer look at burial insurance for parents, including how it works, its benefits, and its drawbacks.
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Burial Insurance for Parents: An Overview
Burial insurance for parents, also known as final expense insurance, is a type of insurance policy that is designed to cover the costs associated with a funeral and other final expenses.
This can provide peace of mind to both parents and their families by ensuring that these expenses are covered and the family is not burdened with financial stress during an already difficult time.
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Types of Burial Insurance Policies for Parents
There are two main types of burial insurance policies for parents: term life insurance and whole life insurance.
- Term life insurance provides coverage for a specified period of time, typically 10-30 years. It is often the most affordable option for parents looking for coverage.
- Whole life insurance provides lifetime coverage and typically has higher premiums than term life insurance. It also has a cash value component that grows over time and can be borrowed against or used to pay premiums.
Best Burial Insurance for Parents
The best burial insurance policy for parents depends on individual circumstances and needs.
When choosing a policy, it’s important to consider factors like coverage amount, premium costs, and any specific features or benefits that may be important to you.
Senior Burial Insurance for Parents
Seniors may face unique challenges when it comes to obtaining burial insurance coverage, but there are options available.
Guaranteed issue burial insurance for seniors policies are designed for seniors who may have health issues that make it difficult to obtain coverage through traditional means.
Burial Insurance Rates Comparison
To get a better idea of how burial insurance rates for parents compare across providers, we’ve compiled a table of sample monthly rates for a $10,000 burial insurance policy for a 60-year-old parent.
| Provider | Monthly Rate Female | Monthly Rate Male |
|---|---|---|
| Mutual of Omaha | $32.87 | $43.76 |
| AARP (Waiting Period) | $38.00 ($60.00) | $52.00 ($80.00) |
| Colonial Penn (Waiting Period) | $69.65 | $89.55 |
| Gerber Life (Waiting Period) | $51.06 | $63.89 |
| Lincoln Heritage | $44.80 | $59.20 |
It’s important to keep in mind that rates may vary based on factors like age, gender, and health status.
Life Insurance Rates Comparison
To get a better idea of how life insurance rates for parents compare across providers, we’ve compiled a table of sample monthly rates for a $50,000 10yr term life insurance policy for a 50-year-old parent.
This is a Non Medical Term.
| Provider | Monthly Rate Female | Monthly Rate Male |
|---|---|---|
| Mutual of Omaha | $24.34 | $31.82 |
| American Amicable | $18.90 | $23.90 |
| Prosperity | $21.60 | $26.33 |
| Foresters | $25.42 | $30.23 |
| CFG | $26.40 | $31.06 |
It’s important to keep in mind that rates may vary based on factors like age, gender, and health status.
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Pros and Cons of Burial Insurance for Parents
Pros
- Financial protection: Burial insurance for parents can provide financial protection and support to the family in the event of the parent’s death.
- Peace of mind: Having burial insurance can provide peace of mind to both parents and their families, knowing that final expenses are covered.
- Easy to qualify: Burial insurance policies are often easier to qualify for than traditional life insurance policies, making them a good option for seniors or those with health issues.
Cons
- Cost: Burial insurance premiums can be expensive, especially for older parents or those with health issues.
- Coverage limitations: Some burial insurance policies may have limitations on coverage amounts or exclusions for certain types of deaths, such as suicide.
- Underwriting requirements: Depending on the type of policy and the provider, parents may need to undergo a medical exam or provide health information to obtain coverage.
Frequently Asked Questions
What Does Burial Insurance Cover?
Burial insurance typically covers the costs associated with a funeral, such as a casket, burial plot, cremation (If chosen), transportation, and other related expenses. Some policies may also cover additional final expenses, like medical bills or outstanding debts.
How Much Burial Insurance Coverage Do Parents Need?
The amount of burial insurance coverage that parents need depends on factors like the cost of a funeral in their area and any other final expenses they may have. A general rule of thumb is to obtain coverage that is at least equal to the estimated cost of a funeral. It’s important to consider individual circumstances and needs when determining the appropriate coverage amount.
Can Parents Purchase Burial Insurance Policies for Their Children?
Yes, parents can purchase burial insurance policies for their children. These policies can provide financial protection and peace of mind to parents, as well as cover the costs associated with a funeral or other final expenses.
Is Burial Insurance for Parents Taxable?
Generally, burial insurance proceeds are not subject to federal income tax. However, there may be exceptions in certain circumstances, such as if the policy was purchased under a business arrangement or if the death benefit is paid out in installments.
Conclusion
Burial insurance for parents can provide financial protection and peace of mind to both parents and their families by covering the costs associated with a funeral and other final expenses. By understanding the different types of policies available, comparing rates across providers, and considering individual needs and circumstances, parents can find the right burial insurance policy to meet their needs.
