Yes, you can buy final expense insurance for your parents.
Learn what’s required, how final expense policies work, the cost, and how to get no waiting period coverage.
Topics Covered in this article
Can You Get Burial Insurance For Your Parents?
Under certain conditions, you can buy burial insurance for a parent.
In short, they must sign the application and answer any health questions if there are any (some plans have none).
Since you’re paying the premiums, you can be the owner, payer, and beneficiary.
But even though you’re buying the coverage, they must be involved in the process.
If your mom or dad is unwilling to participate in the application process, there is no way to insure them.
Check into a pre-paid burial if they won’t let you buy insurance for them.
There must be “insurable interest” to buy life insurance for a parent.
Insurable interest is when you, the beneficiary, would endure a financial setback due to the death of the insured (your parents).
Fortunately, your parent’s final expenses will satisfy the insurable interest requirement.
So when buying final expense insurance for your parents, no insurance company will ask you why or require you to provide documents proving you have insurable interest.
How Final Expense Policies Work
Burial insurance plans are small whole life insurance policies, usually between $2,000-$40,000, meant to pay for all funeral and other end-of-life costs.
Premiums are affordable, medical exams aren’t required, and health issues won’t preclude them from qualifying.
Upon passing, the insurance company will pay out a tax-free check so you can pay for their final expenses.
The money can be used for the funeral, medical bills, debts, or anything else.
Any money left over stays with the beneficiary(s).
Some senior burial policies have health questions, and some do not.
There is a big difference between the two.
First, plans with health questions generally cost less and have no waiting period (if you’re approved).
No health questions policies are called guaranteed acceptance life insurance.
You cannot be denied due to any pre-existing health conditions. The guaranteed approval provision does come with drawbacks.
First, they are more expensive since the insurer takes on much risk knowing nothing about your health.
Second, they have a two-year waiting period.
The insurer will only refund your premiums if you die during the waiting period for non-accidental death.
There is no fine print to be leery of since whole life insurance is a simple policy.
The payments will never increase, the death benefit coverage won’t decrease, and the policy will never terminate due to age.
Additionally, they build cash value that the policy owner can withdraw and use as they see fit.
It’s important to remember that you will also hear “burial insurance,” commonly referred to as “final expense insurance” or “funeral insurance.” All three of these terms have the same meaning.
How Much Does Final Expense Insurance Cost For A Parent?
The cost of final expense insurance for parents is usually between $50-$100 monthly for a $10,000 death benefit.
However, the price you actually pay is based on your parent’s exact age, gender, health, tobacco usage, and the amount of death benefit coverage you want.
Age is the most significant factor that determines the price. Life insurance for seniors over 70 costs nearly double what it does in your 60s.
A whole life rates chart by age, like the one below, is an excellent way to estimate how much final expense insurance costs.
Funeral Insurance For Parents Over 80
You can buy life insurance for seniors over 80. Granted, the options at this age are limited, but it can still be done.
Even seniors over 85 can qualify for life insurance (even fewer options at 86+).
Buying funeral insurance for parents over 80 isn’t any different, but there are some key companies to investigate.
Below are some of the best companies that offer life insurance for seniors over 80.
|Insurance Company||Coverage Options Above 75||Max Age For New Applicants||Policy Type||When Policy
Can Pay Out
|$2,000-$40,000||85||Whole Life Insurance||No waiting period|
|$1,000-$30,000*||85||Whole Life Insurance||No waiting period|
|$2,000-$25,000||89||Whole Life Insurance||No waiting period|
|$2,500-$25,000||89||Whole Life Insurance||No waiting period|
|$2,500-$15,000*||90||Whole Life Insurance||No waiting period|
|$2,000-$20,000*||90||Whole Life Insurance||Refund of premiums in first 12 months, 50% payout in 2nd year, then full benefits after 2 years|
|*Maximum coverage varies by age|
How Much Does A Funeral Cost?
The cost of a funeral varies greatly depending on your preferences.
According to the NFDA, the average funeral (with a burial, viewing, and vault) costs about $9,420.
Cremation is less expensive, but not a significant amount. The average cost of cremation is $6,970.
But you can save considerable money if you opt for direct burial or direct cremation.
A direct funeral has no memorial services of any kind.
The average direct burial costs $2,597, and the average direct cremation costs $2,183.
How To Find The Best Funeral Policy For Parents
It’s vitally important that you compare various policies side by side if you want burial insurance for your parents.
The same is true if you want life insurance for a grandparent.
That’s because final expense policies vary significantly by the company in terms of price, underwriting, and waiting periods.
The best thing you can do to find your parents the best burial policy is to work with an independent agency like Choice Mutual.
Independent agencies represent multiple insurance providers rather than just one.
For example, State Farm is a captive company because its agents can only represent State Farm.
If you don’t like State Farm’s offer, they cannot recommend another insurer that might give you a better deal.
When you buy through a broker, 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.
If you need final expense insurance for a parent, call us at 1-800-644-2926.
We partner with over 15 different insurance companies. We’ll find you the best price possible and hold your hand throughout the process.