Last Updated on: July 11, 2024
Reviewed by Kyle Wilson
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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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:
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.
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:
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.
5 simple steps to purchasing burial insurance.
Most carriers allow up to $25,000 for purchase. Depending on your parent’s health, some carriers allow more.
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:
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.
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.
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.
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/
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 Insure Guardian, 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.
Burial Senior Insurance provides information and services related to burial insurance for senior citizens, including policy options and end-of-life support services.
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