Final expense insurance for seniors, or burial insurance, is a great life insurance option that is mainly designed for senior adults who are at the age of 50 and older and are ready to make end-of-life plans.
This policy usually covers funeral-related costs like a funeral or memorial service, embalming and a casket, or cremation after your death. However, beneficiaries avail the benefit of this insurance for any purpose, like paying rent or property taxes.
In this blog, we will explore more about;
- Types of insurance.
- Who can get this insurance policy?
- What costs does the final expense insurance cover?
- How does it work?
Types of final expense insurance for seniors
The final expense insurance for seniors has three different types of policies to consider:
- Simplified issue
The insurer will ask questions related to your medical history to determine your health condition. A medical exam is not required here, so the applicants answer a health questionnaire as part of the approval process. The insurer then assesses your level of risk to determine your premium rates and coverage options. You can get your insurance approved on the spot without any issues.
- Guaranteed issue
It works best for people with serious health conditions or for those who cannot avail of any other type of insurance. Here you don't have to answer any health questionnaire or take an exam. However, this type of policy brings a higher risk to the insurer. Hence, you may have to pay a significantly higher amount than the simplified issue.
So, if you've been turned down for other policies due to health reasons, then you can go for a guaranteed issue. This issue helps you get the protection you and your family need.
Please note that guaranteed issues come with a graded benefit. It means the full benefit won't be paid till the policy has been active for a certain length of time. So, if you die before that, then your family will either receive a lower payout or will be refunded the amount you paid in premiums.
- Pre-need insurance
This policy requires the involvement of your funeral service provider. In this policy, you will have to choose specific products and services through the funeral provider. When the person dies, the policy's payout goes directly to them instead of the beneficiaries you select.
Who can get this insurance policy?
The final expense insurance for seniors can be availed by people who are typically between the ages of 50 and 85. One of the advantages of this insurance policy is that it doesn't require a medical exam to qualify.
What costs does the final expense insurance cover?
As we have mentioned earlier, the final expense insurance for seniors helps cover older adults with their end-of-life costs. These include:
- Rental fees of the funeral home.
- Other funeral home costs- viewing, service, or memorial package.
- Transportation to and from.
- If you choose burial, then it will cover your transportation fees to and from the cemetery, grave marker, and casket.
- If you wish to have an open casket, then it will also protect your embalming costs.
- If you decide to be cremated, then it will also cover your cremation costs.
- Any additional expenses like- the ceremony, music, and flowers.
However, the final expense plan comes with no strings attached. Hence, you can also use it for multiple other purposes, which include.
- Medical bills, hospice care, or other end-of-life expenses, like co-pays, prescription drugs, emergency care, inpatient facilities, and nursing care.
- It allows you to pay your credit card loans, auto loans, or other debts, relieving your loved ones from being financially burdened with any remaining debts.
- If you have a spouse, they won't struggle without your income or contributions. This insurance policy allows them to cover the basics like housing, mortgage payments, or any living costs and other expenses.
- You can also use this as an inheritance for your kids or grandkids.
How does it work?
Final expense insurance for seniors secures your end-of-life expenses so that your family doesn't have to worry about out-of-pocket costs. Firstly you will need to choose the amount of insurance plan you want and decide who will be the beneficiary upon your death.
The beneficiary will contact the insurance company and start the claims process as soon as possible after the insured person's death. The beneficiary needs to provide identification, a claims form, and a certified copy of the death certificate.
Conclusion
Final expense insurance for seniors usually covers whatever your beneficiaries decide to use it for. So, make sure that, upon your death, your funeral costs are covered no matter when and relieve the financial burden on your family members.
Murray Talks Insurance is your one-stop search for all your health and financial protection needs. It is one of the top life, small business, and individual health insurance brokers in NJ. Contact us now and choose the best medical coverage for you and your loved ones.