At IBUSA, we work with the top burial insurance companies in the U.S.A. Our goal is to align our clients with the company that best meets their needs, goals, and of course, budget. So if you are a senior looking to buy the best burial insurance you have come to the right place.
There are some important nuances any burial insurance shopper needs to be aware of. That is why we created this burial insurance for seniors guide, so we can help you make the best decision you can on the right coverage from the right company, that best fits your specific situation.
The best burial insurance for seniors is going to have three primary ingredients:
1. The policy is whole life insurance that builds cash value
2. The life insurance company is top rated so you know it can pay out
3. The burial insurance plan is affordable so it fits into your budget
Burial Insurance for Seniors
The following list represents the top 24 companies that offer the best burial insurance companies based on our 3 criteria above.
- American Continental Insurance Company (Aetna)
- American International Group (AIG)
- American Amicable
- American National
- Baltimore Life
- Colonial Penn
- Fidelity Life
- Foresters Financial
- Gerber Life Insurance
- Globe Life
- Kemper Senior Solutions
- Liberty Bankers Life
- Lincoln Heritage Life Insurance Company
- Mutual of Omaha
- Oxford Life
- Royal Neighbors of America
- Sagicor Life Insurance Company
- Trinity Life
- United Home Life
What is Burial Insurance?
Burial insurance is a permanent life insurance policy that is used for the primary purpose of covering burial costs or funeral expenses. It could just as easily be called funeral insurance, as the primary purpose is to cover funeral costs and provide financial help for family members and other loved ones.
There is no category of insurance termed “burial insurance.” Some companies use the term “burial insurance” as marketing, while other companies use the term “final expense insurance” or “funeral insurance.”
So, what is burial insurance? Let’s start with a definition.
Burial Insurance Definition:
Burial insurance, also known as funeral insurance or final expense insurance, is a type of life insurance policy that is designed to cover the costs of a funeral and other related expenses. These policies typically have smaller benefit amounts, ranging from $5,000 to $25,000, and are designed to help pay for end of life expenses, such as unpaid medical bills, funeral arrangements and memorial services.
Burial insurance policies for seniors typically require you to be at least age 50, although some policies are available to people of all ages. And some policies do not require a medical exam or health questions to qualify, although less expensive options exist for those willing to answer a few health questions.
Burial insurance can be a good option for people who want to ensure that their funeral expenses are covered and to provide financial protection for their loved ones in the event of their death. It is important to carefully review the terms and conditions of a burial insurance policy to ensure that it meets your needs and provides the coverage you are seeking.
Burial Insurance Qualification Requirements
Depending on the company and policy, most burial insurance policies for seniors have at least two requirements.
Requirement one: You must reside in a state where the burial insurance is sold.
Requirement two: You must be in the age brackets mandated by the burial insurance policy.
Level, Modified, or Graded Issue
Most burial insurance policies are considered no exam life insurance, also known as simplified issue. That means you will not be subjected to an exam, which typically includes answering health questions, a urine sample, and blood draw.
Instead, many burial insurance companies offer coverage called guaranteed acceptance. And you will find that certain guaranteed acceptance burial insurance coverage may not even inquire into your health or lifestyle at all.
Now, there are different categories or types of burial insurance policies, which are termed Level, Modified and Graded or Guaranteed Issue.
Level benefit is a type of burial insurance policy for seniors that provides the maximum death benefit protection and immediate coverage upon approval. Level benefit refers to the death benefit being 100% from the time the policy is in force until the day the insured dies. As you will see below, not all of these burial insurance policies have a 100% death benefit from day one, as some have a waiting period that must pass first.
A level benefit whole life insurance policy may be a good option for people who want immediate coverage to provide financial protection for their loved ones in the event of their death, with the stability of a fixed benefit amount. These policies can be used to help cover expenses such as funeral costs, memorial service, medical bills, and living expenses for surviving family members.
A term life insurance policy also typically has a level benefit and is less expensive than a typical burial insurance plan but when the term ends you will no longer have coverage or will have to pay a higher premium to renew.
A level benefit policy is more difficult to qualify for than other burial insurance for seniors because it involves answering a health questionnaire. However, these policies won’t require an individual to take a medical exam, thereby they are classified as simplified issue or no medical exam life insurance policies.
Instead of requiring a medical exam, applicants will be required to answer a few health questions and lifestyle questions in order to qualify for coverage.
Often level benefit burial insurance plans are instant issue life insurance, meaning if you pass the questions the policy will be approved and put in force immediately.
Modified benefit life insurance is a type of whole life insurance policy that provides a reduced benefit amount if the policyholder dies within a specified period of time, typically the first two or three years of the policy. After this period, the full benefit amount is paid to the beneficiary.
For example, A policy might pay 40% of the death benefit in year one, followed by 70% of the death benefit in year two, with the full amount paid in year three and onward.
Modified benefit burial insurance for seniors may be a good option for people who are looking to forego a medical exam and don’t qualify for a level benefit policy, but still qualify for affordable burial insurance.
These modified benefit policies are whole life insurance, which build cash value and will pay out the death benefit upon the death of the insured.
With most modified benefit policies, there is a 100% death benefit payout from the policy’s start date if death is due to an accident.
A graded benefit policy is guaranteed acceptance life insurance, also known as guaranteed issue, and is one where the coverage for natural causes requires a waiting period and does not start until after year 2 or 3 of the policy.
A guaranteed issue life insurance policy would fall into a graded-benefit category of burial insurance. With a guaranteed issue policy, there are no health questions. If you meet the age requirements and live in a state where the product is sold, you qualify for the life insurance coverage.
These are whole life insurance policies that have death benefits ranging from $5000-$25000, depending on the life insurance company.
With graded benefit policies, there is a 100% death benefit payout from the policy’s start date if death is due to an accident.
Whole Life vs Term Life
It is very important that the burial insurance policy for seniors be whole life insurance vs term insurance.
The primary reason for this is that a burial insurance policy should last your entire life. With term life insurance, the policy only lasts for a set period of time.
Once a term policy expires, the coverage ends, although you typically have the ability to renew the policy on an annual basis. However, the term life premiums will increase dramatically year over year.
In contrast, whole life insurance lasts your entire life as long as your premiums are paid. Further, your whole life premiums are fixed, which means you pay the same premium payment from day one, all the way to the day you die so there are no surprises down the road.
Some Additional Benefits of Whole Life Burial Insurance
Let’s take a minute to explore some additional benefits of whole life insurance.
First, whole life builds guaranteed cash value. You can use your cash value to pay premiums for a time, borrow against if you need some quick cash, or you can use it to purchase a reduced paid-up policy down the road.
Second, whole life insurance has a guaranteed death benefit. That means that as long as you pay your premiums, the policy is guaranteed to pay out a death benefit.
This is in contrast to term life which can expire. But it is also in contrast to other types of permanent life insurance that does not offer the same type of guaranteed death benefit, where the policy may not perform as illustrated and you lose your coverage or are forced to make larger payments to keep it in place.
So, in summary, the three primary benefits of whole life burial insurance is that you have a guaranteed fixed premium payment, guaranteed cash value growth and a guaranteed death benefit payout to your beneficiary.
Alternatives to Whole Life Insurance for Burial Insurance
A term life insurance policy last for a specific period of time. Depending on your age, you can get anywhere from a 1 year to 40 year term insurance policy.
Many term life insurance burial plans are designed so that the premium increases every five years. So, you may pay $30 a month in the first five years of your term policy, but your premium will increase to $40 a month for the next 5 years.
And as you get older, your premium increase will be more substantial, making it difficult to keep the term insurance as you age.
Why Burial Insurance for Seniors?
Dying can be very expensive. The current cost of a funeral in the U.S. can run around $7,000-$10,000. A burial insurance policy’s death benefit can help cover these end of life expenses.
In addition to a burial, there is also any existing debts that need to be paid, including hospital bills, medical bills, and legal fees. Your burial insurance policy’s beneficiary can use any extra money to pay these bills.
That is why leaving any amount of money to your family when you die is a true act of kindness and relieves a big financial burden. Otherwise, your family and friends may have to start a gofundme campaign just to pay for your funeral and end of life expenses.
How We Can Help
At IBUSA, we work with the best final expense and burial insurance companies. We can help align you with the company that best meets your needs and goals.
So what are you waiting for? Give us a call today and experience the IBUSA difference!