How to Buy Burial Insurance for Parents | Complete Guide

Last Updated on: July 11, 2024

Reviewed by Kyle Wilson

how to buy burial insurance for parents

All parents try to do their best to look after their children for as long as they live. If your parents are aging, then everyone must be ready to face the cost that comes with their last years of life, including burial fees. Are you considering burial insurance to ensure your parents’ final expenses are covered?

Funerals in general cost an average of $10,000 and the things that have comprised this cost are burial or cremation expenses. If your parents have unpaid hospital bills, those can be another burden that is placed on you during what is already a very difficult time. It is an expense that no parent would wish their children to pay.

Burial and funeral costs fall under this category; final expense insurance or funeral insurance helps to cover such expenses at a reasonable price. Here’s what you should understand while how to buy burial insurance for parents and some tips on how to discuss this issue with your parents.

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Can I buy burial insurance for my parents?

Not surprisingly, most of us have not talked about the cost of a funeral. But it is possible to prepare now and if the families do not prepare now, they may face serious financial challenges later.

The first one is to ask your parents what their personal preferences are; Some experts recommend following the 40/70 rule: 

Discuss funeral preferences and other important issues and aging-related issues when you are forty and they are seventy. What kind of funeral do they want? Do they want to be buried or cremated? What types of insurance for parents would they require? This could be scary to do – but I’m pretty sure everyone will feel better about what’s going to be said next.

Ideally, it becomes wise to try and plan for funeral insurance in such a manner that the amount is enough to cater for the funeral expense at its highest expense possible, alongside other day-to-day expenses which may include bills on medical expenses. If you’re considering buying burial insurance for parents, there are a few steps that you’ll need to take:

  • Your parents agree to the policy being issued.
  • You will require their social security number as well as other details.
  • If you discuss it with parents in advance, then it is far easier to get things right when it is time to purchase the policy.

Is burial insurance worth buying?

The purchase of burial insurance is fast and inexpensive, which makes it suitable for most families to make their last arrangements.

Less coverage translates to lower premium rates and with plans that are between $5, 000 and $40,000, you are sure to get the right plan for your family.

Through this option on how to buy burial insurance for parents, your parents can usually be approved up to the age of 85 years.

Firstly, there is no medical check and people can generally get approved quickly within hours.

Can you buy burial insurance for parents

In the complete process of how to buy burial insurance for parents? Ideally, you should be the owner, the payor, and the beneficiary (unless someone else is to be). This way nobody else can enquire about the policy or change the policy without your consent. Furthermore, if you own the policy, the benefits, which accumulate as cash value, will not affect their Medicaid rights.

With a life insurance policy, there are generally four parties:

  • Insured: Your parents
  • Owner: The one who is in charge of the policy and any cash value that may be present.
  • Beneficiaries: Who receives the amount in cases when the insured has died
  • Payor: The person who pays for the premiums.

This kind of ownership can be created at the time of application or it may be transferred after the issuance of the policy.

One should be very careful when processing funeral insurance online because online processing forms are not intended for filing by anyone other than the applicant.

When you fill out the online forms from companies like the AAA or Colonial Penn, the insured or your parent automatically becomes the owner. Regarding these policies, the insurance companies would only respond to inquiries or changes (even if you want to cancel the policy) from your parents, and only the parent has the authority to make those changes.

How To Find The Best Burial Policy For Parents

Whether you want life insurance for parents or a grandparent, it’s vitally important to compare various policies side by side to find the best burial insurance plan. That’s because each company’s policies vary significantly in price, underwriting, and waiting periods.How to buy burial insurance for parents? The best thing you can do is work with an independent agency like Burial Senior Insurance. Independent agencies represent multiple insurance providers rather than just one. An agency’s job is to analyze each company to find the best life insurance option without favoring one provider or another.In contrast, captive insurance companies do not allow their insurance agents to represent other providers. For example, State Farm is a captive life insurance company. Their agents can only offer State Farm. If you don’t like State Farm’s offer, the agent cannot recommend another insurer that might give you a better deal.Remember, when you buy through a broker like Burial Senior Insurance, there is never a cost, fee, or upcharge to the insurance. An independent agency will answer all your questions and find you the best, least expensive policy possible.

Steps to how to buy burial insurance for parents?

5 simple steps to purchasing burial insurance.

- How much coverage do you want?

Most carriers allow up to $25,000 for purchase. Depending on your parent’s health, some carriers allow more.

- Find out more about your parent’s health history.

This information is important as it determines the type and cost of life insurance available. Some questions you want to ask your parents include, but are not limited to:

  • What are your height and weight?
  • What medication do you take?
  • Have you been hospitalized in the last 12 months?
  • What health conditions were you diagnosed and treated in the last 5 years?

- Contact us

Knowing the information in step 2, contact us. We can then go over the information and give you a preliminary quote. In this step, we may need your help securing additional information.

- Apply

Knowing the information in steps 2 and 3, we would select the best burial insurance option for your parents. We would then apply. Typically, you, your parents, and we simply need to be on a 3-way call. Easy.

- Upon approval, set up payment.

Upon approval, you’ll need to set up your checking account for payment. Some carriers, but very few of them, offer credit card payments.

It’s usually a simple process. However, I can’t underscore the importance of knowing your parent’s health history. That will drive the availability and cost.

What If Your Parents Are Disabled Or On Medicaid?

You shouldn’t worry. Burial insurance is still available for your parents if they are disabled. We’ve helped many parents who are disabled in one way or another obtain burial insurance.

Additionally, burial insurance is available if they receive Medicaid.

You may have heard elsewhere that people on Medicaid can’t have burial insurance.

That is not true at all.

Yes, with Medicaid, you generally have to approach carefully, but it is not impossible. Numerous ways exist for people to purchase life insurance while on Medicaid. One way is for you, as the son or daughter, to be the owner and the beneficiary, provided you are not on Medicaid. You see, being on Medicaid and being insured on a burial insurance policy is not a disqualifying factor.

As long as your parents are not the owner of the policy, their Medicaid benefits should stay intact.

Conclusion

As we wrap up how to buy burial insurance for parents? Securing burial insurance for your parents is a loving and practical step to ease future financial burdens. Have you found the plan that suits their needs and fits your budget? With the right information and careful planning, you can provide peace of mind for your family and ensure your parents are honored with the dignity they deserve.

https://choicemutual.com/blog/burial-insurance-parents/

https://www.dignitymemorial.com/pre-planning/funeral-costs/burial-insurance-for-parents

https://www.lhlic.com/consumer-resources/life-insurance-for-parents/

 

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Senior Writer & Licensed Life Insurance Agent

Iqra is a dynamic and insightful senior writer with a passion for life insurance and financial planning. With over 8 years of hands-on experience in the insurance industry, Iqra has earned a reputation for delivering clear, actionable advice that empowers individuals to make informed decisions about their financial future. At Burial Senior Insurance, she not only excels as a licensed insurance agent but also as a trusted guide who has successfully advised over +1500 clients, helping them navigate the often complex world of life insurance and annuities. Her articles have been featured in top-tier financial publications, making her a respected voice in the industry.

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