Many people in may be asking if burial insurance is a good idea for seniors. You might have even seen the ads here and there talking about a low-cost insurance option for seniors. Burial insurance is an affordable option and likely will cost just dollars per month for thousands in coverage.
But how true is this? Here are five things you should know about burial insurance for seniors.
Burial Insurance is a Type of Life Insurance
They are very similar. Burial insurance is a type of life insurance, although it has its own features that make it unique and set it apart from your typical life insurance policy. You can apply for burial insurance later in your lifetime, and there is no medical exam required.
You can also choose a smaller coverage amount of between $5,000 and $25,000 typically. Premiums are also usually lower, and this helps to accommodate seniors who may be on a moderate or a fixed income.
No Medical Exam
Again, no medical exam is required to qualify for coverage. So, if a senior in is sick or has a pre-existing condition, they can still qualify for coverage. If you are a senior with health concerns, burial insurance is a viable solution when you need coverage. The process is also more streamlined, so there is no need to wait days, weeks, or months to hear back.
Money Can Be Used For Other Expenses
Even though this coverage is known as burial insurance, the benefits paid out does not necessarily have to go toward the funeral expenses. It can also help pay down other post-life expenses as well. The burial benefits are typically paid out as a tax-free lump sum payment to the beneficiary. Once this happens, the beneficiary can spend the money as they deem necessary.
Low-Cost Coverage Option
Prices for burial insurance can vary depending on certain factors; however, the typical amount a senior may pay can be as little as $2-$3 per week. This number varies on the company, the amount of coverage needed, and the age of the applicant. The younger you are, the cheaper the burial insurance will be. Also, the bigger the policy, the more expensive it will be.
Guaranteed Pay Out
Burial insurance is considered guaranteed coverage. As long as the payments are kept up with each month, it is a secure financial investment. It can also pay out more than you are paying into it. This depends on how long you have been making your premium payments.
Coverage Waiting Period
Since burial insurance is considered a guaranteed life insurance plan, there is typically a two year waiting period before benefits will be paid out. This is important to remember. The waiting period is put into place because the insurance company doesn’t have health information on the policyholder.
However, if the policyholder passes before the two-year waiting period is up, many insurance companies will refund any paid premiums plus interest to the beneficiary.
As you can see, there is plenty of value when it comes to choosing a burial insurance plan as a senior. For more information, contact the experts at https://burialinsurancenetwork.com in , .