Funeral Insurance for the Elderly
The time of life when most people take care of funeral planning—in their eighties—is the one time when things like life insurance and retirement packages are hard to come by. There is no question that the best time to set funds aside for a funeral is when you are still working and doing your regular estate planning. Your health is good enough to get better premiums on life insurance, you still earn enough income to put a little extra aside, and you are in a great position to know what kind of farewell you will eventually get.
Unfortunately, not everyone is able (or willing) to make these advance funeral plans, which means that you may be approaching your seventies, eighties, or even nineties and not have anything concrete planned.
Burial insurance for the elderly exists to provide advance funeral planning no matter what your age. Unlike life insurance, which may require a physical examination, most burial insurance policies provide locked-in premiums and guaranteed coverage.
Types of Funeral Insurance for the Elderly
The type of burial funeral insurance for seniors you choose depends on where you get your policy and what your needs are. The two most common types include:
- Cash Payout: These types of burial insurance plans are usually an even exchange of funds. You pay for an insurance policy that provides a set payout amount upon your death. Your beneficiary receives the funds right away and may use them however he or she wishes (but hopefully to pay for your funeral).
- Pre-Payment Plan: In this type of funeral insurance, you take the actual steps to determine what type of funeral you want. You put money into an insurance policy (or trust) and outline how the funds are to be used when you pass on. You can get as specific as you wish, especially if you name a particular funeral home as the beneficiary and sign a contract for services and goods.
Considerations for Seniors
Because seniors are a specific and unique population, burial insurance for this age group often takes a different form than that for younger consumers. You may have to pay higher premiums, make more specific decisions regarding burial, or have fewer options when it comes to providers.
You might also find that it is easiest to get a burial insurance policy through a funeral home rather than an insurance provider. That’s because funeral homes are accustomed to working with older customers to help prepare, plan for, and arrange final plans.
It is never too late to start planning for your funeral and to make financial arrangements. If you are worried about paying for a burial or burdening your family with the costs when you pass, talk with a local funeral home for more information on burial insurance for seniors.
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By Amy Johnson