There is a common myth out there that seniors don’t need life insurance. In some cases, that might be true, but everyone is different.
Just because you’ve reached retirement doesn’t necessarily mean that you should let your life insurance policy expire. Depending on your situation, not having life insurance could be one of the worst mistakes that you make for your loved ones.
One reason that a lot of seniors don’t have life insurance coverage is because they think that they can’t afford a plan that will protect their family. Luckily, there are several options for quality and affordable insurance that you can choose from.
One cheap option is to buy burial insurance. These plans are a more affordable option, but there are several things that you should take note of when you’re shopping for coverage.
This article is going to look at getting life insurance for an applicant over 70 and help you decide if a burial insurance policy is going to be the best choice.
At Over50LifeInsure.com, we know that finding the best policy can be a long and complicated search, but that’s why we are here to help.
What is Burial Insurance?
Burial insurance (sometimes called final expense insurance), is simply a life insurance policy that is designed to give your family the money that they need to pay off any burial fees or final expenses that you would leave behind. These plans offer much smaller payouts, but they are also much more affordable.
Each company is going to have different coverage amounts. Some companies will offer $10,000, while others are going to offer as much as $40,000 worth of protection.
Some insurance companies even have plans for as small $2,000. $2,000 may not be enough to cover your final expenses, but if $2,000 is all you need it’s an option for you.
It’s important when purchasing burial insurance over age 50 that you determine how much your family will need before you purchase a plan.
Many people just need a policy that is big enough to cover the actual cost of the burial services. Others want to make sure that there is some extra money available to fly certain family members or perhaps a close friend in for the funeral if it would be financially difficult for them to make the trip.
Other costs you may want to have paid for are any outstanding medical bills or perhaps any smaller debts you may have.
Final expense life insurance coverage is about easing the burden for your family so that while they are grieving they don’t have to stress about the financial part. A final expense life insurance policy can make sure the funds are there when it’s needed.
Because these policies are much smaller than a normal life insurance policy, the company won’t require that you take a medical exam nor will they want to obtain your medical records.
That means that you’ll be able to get approved for coverage much faster than you can with a traditional plan. In fact, with a burial insurance policy, you can get approved for your coverage often times in just a few days and sometimes in just a few hours.
Is Burial Insurance Right for me?
Burial insurance policies are a unique type of coverage that doesn’t fit perfectly for every senior. There are several questions that you should ask yourself before you purchase one of these plans.
The first question that you should ask yourself is, “how much debt would I leave to my family?” The primary goal of any life insurance policy is to give them the money that they need to pay off any major bills that they would be responsible for.
If you’ve paid off your mortgage and don’t have any big bills, then you should consider buying a burial insurance plan. These plans will save you money, instead of paying the expensive premiums of a traditional plan.
The next question that you should ask yourself is, “does anyone rely on my paycheck?” If you’ve retired, you might not have anyone that relies on your income.
However, if you do then a burial insurance policy won’t get your family the funds that they need. If you have children or a spouse that needs your paycheck to survive, then you will need to apply for a plan that provides more coverage.
When aiming to get the most affordable life insurance over age 50 for some people having a burial life insurance plan combined with traditional coverage is the best option.
For instance, we helped a lady 71 year old lady who wanted to make sure her mortgage could be paid off if she were to pass away before she was finished paying on the mortgage.
She also wanted to make sure that there was coverage in place so that when she did pass money would be readily available to pay for funeral costs and any other final expenses.
She still owed about $65,000 on her mortgage which she planned to have paid off in next in 8 0r 9 years. We helped her put a $65,000 10 year term policy in place.
This way the funds would be there to pay off the mortgage if she were to pass away before her mortgage was paid for. Also, if she does pay of the mortgage before the 10 year term period is up she is going to cancel the policy to save money on premiums.
We also helped her get a $12,000 final expense whole life policy. This was to cover final expenses.
With the final expense burial life insurance plan the premium will stay the same no matter how she lives. Also, the benefit amount or the death benefit will stay exactly the same as well.
This is important because there are some plans out there that end when you are 80 or 90 years old.
Imagine paying for a final expense whole life plan only to find out that age 80 your policy will cancel. Then you are 81 years old and you have no life insurance coverage.
If you are still healthy in your 80’s its’ still going to cost a lot more than it costs when you are in your 60’s and 70’s.
Then if you have developed any concerning medical conditions your rates may be even higher or you may only be able to get a graded type of plan. Typically with the graded plans you aren’t fully covered for the first years.
Often times with a graded plan if you were to pass away in the first two years the premium you paid plus some interest would be paid to your beneficiaries. However, the full death benefit would not be paid during this time.
If you were to pass away after two years then the full face amount of the policy would be paid.
Finding the Cheapest Policy
Regardless of which type of insurance policy that, you’re buying, it’s important that you compare dozens of policies and companies before you pick the one that’s going to work best for you.
When you’re shopping for a new TV or car, you don’t buy the first one that you see, why would you do that with a life insurance plan?
Every insurance company is different, and all of them have different medical underwriting or rating systems that they use. That means that you’re going to get drastically varying rates depending on the company that you contact.
Because there are hundreds of companies on the market, you could spend days calling companies. Instead of wasting your valuable time, let one of our independent agents do all of that boring, dirty work for you.
Unlike a traditional agent, our independent brokers work with dozens of highly rated companies across the nation. We know which companies are going to give you the lowest premiums for a plan that will meet your needs. Our agents can give you a personalized set of quotes in a matter of minutes.
We know that shopping for burial insurance or a traditional life insurance policy is not a fun task.
Nobody wants to spend their weekend calling insurance agents to get quotes for their life insurance policy or planning their own funeral, but not having insurance coverage is one of the worst mistakes that you can make for your loved ones.
You can’t predict the future, which means that you shouldn’t wait another day to get the life insurance that your family deserves. If something awful were to happen to you, and you didn’t have life insurance, your family would be stuck with funeral expenses and debts.
Losing someone that you love is never easy, but being stuck with a massive amount of debt is going to make the whole situation that much worse.
If you have any questions about burial insurance or you need assistance in getting life insurance as an applicant over 70, please contact one of our agents today.
We would love to answer those questions and connect you with the best possible plan available. We have years of experience working with older applicants, and we know which companies are going to give you the best rates.