First of all, yes you can get final expense insurance on your parents.
If you want coverage on your mom or dad (or your grandparents), you came to the right place.
In this article, you’ll learn how these plans work, see real prices, how the application process works, how to get find the best plan and much more.
Feel free to click a link below to jump to whichever section might interest you most or just read on.
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- Can You Buy?
- Policy Details
- Options Over 80
- Why Buy Coverage
- How To Find The Best Plan
- The Application Process
- Overpriced Companies To Avoid
Yes you can buy burial insurance for your parents. It’s actually quite common for kids to buy parental coverage to cover their final expenses which can easily exceed $10,000.
They must sign the application and agree to the coverage. You can be the owner, payer, and beneficiary since you’re paying the premiums.
These plans are small whole life insurance policies that have small coverage options between $2,000-$40,000. Premiums are affordable, exams aren’t required, and health issues won’t preclude them from qualifying.
Upon passing, they pay out a tax-free check to pay for funeral and other final expenses. Any money leftover stays with the beneficiary(s).
Understanding the fine print of these policies is easy. Since they’re whole life insurance, here’s a full summary of how they work.
- Fixed lifetime premiums that cannot increase
- Guaranteed coverage that cannot be canceled
- Coverage is guaranteed to never decrease in value
- Permanent coverage that won’t expire at any age
- Cash value builds up over time that you may borrow from
That’s literally all there is to these plans. You need not be concerned this is some hidden clause or fine print somewhere that will come back to haunt you.
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.
Burial insurance is life insurance. As such, it’s governed by the same rules and regulations. If you are interesting in purchasing a funeral insurance policy for your parents, there are some requirements you will have to satisfy.
Thankfully, these requirements are simple, and almost never an issue. However, we reveal these to you now, so you know what to expect before you pick up that phone.
1) Insurable interest
Fortunately, this first requirement is satisfied by the mere nature of your relationship. Life insurance companies require insurable interest if you are going to take out a funeral policy on parents.
In layman’s terms, insurable interest means that you would have a financial loss if your parents were to pass away.
Obviously, you being stuck with upwards of $10,000 in funeral bills is obvious evidence that you would incur a financial loss in the event of your parent(s) passing.
Here’s the bottom line
No burial insurance company will ever question you or require any sort of documentation to address the issue of insurable interest. Because you are related, that satisfies the requirement.
Sometimes we contemplate deleting this section altogether since it’s a non issue. However, we just like to give everyone a behind the scenes understanding of how this stuff works for the sake of transparency.
2) Consent to review medical history
In order to get your parents approved for a burial policy, the insurance company will need to assess their health. Then they can medically determine if they are eligible for coverage.
Remember though, at no point will your parents have to endure a physical or medical exam.
They just need to answer health questions and agree to allow the insurance company to access their medical history to determine if they’re eligible.
HIPPA laws are very strict in the USA. You cannot give an insurance company consent to review your parents protected health information. Only the proposed insured (your parents) can do that.
If you wish to buy some burial insurance coverage for your parents, they will need to give the insurance company authorization to review their medication history.
What To Do If Your Parent’s Won’t Give The Insurance Company Consent To Review Their Health Data?
In this circumstance, you will not be able to get life coverage for your parents that protects them immediately.
Your only option in this situation would be to take out a guaranteed issue life insurance policy. This kind of policy has no medical underwriting at all. They literally just issue the policy to anyone who applies as long as they meet the age requirements.
However, they will still need to agree to having the coverage issued.
Bear in mind that guaranteed issue life insurance has two big drawbacks.
- They are much more expensive
- The policy does not pay out benefits if death occurs during the first 2 years
Obviously, those are pretty bad concessions to make if you don’t have to. This is why you should always try your hardest to obtain a policy that does assess your parent’s health.
Hopefully your parents won’t object to the insurance company reviewing their prescription history. It will mean substantially lower rates, and coverage that protects them in full immediately.
If they won’t do that, a guarantee issue policy is your only option.
How much is final expense insurance? The table below has some real prices for final expense for parents.
Please know, their rate may be higher or lower depending on their exact age, health, gender, state of residence and amount of coverage purchased.
45 $12.91 $22.61 $14.32 $25.45
46 $13.11 $23.02 $14.69 $26.17
47 $13.38 $23.55 $15.11 $27.02
48 $13.69 $24.18 $15.58 $27.96
49 $13.84 $24.48 $15.86 $28.52
50 $13.94 $24.67 $16.18 $29.16
51 $14.33 $25.45 $16.75 $30.30
52 $14.54 $25.88 $17.16 $31.12
53 $14.91 $26.62 $17.70 $32.20
54 $15.33 $27.47 $18.41 $33.61
55 $15.80 $28.40 $19.15 $35.09
56 $16.24 $29.27 $19.83 $36.45
57 $16.63 $30.06 $20.55 $37.91
58 $17.02 $30.83 $21.24 $39.27
59 $17.45 $31.70 $22.01 $40.82
60 $18.04 $32.87 $22.98 $42.76
61 $18.86 $34.51 $24.29 $45.38
62 $19.63 $36.06 $25.55 $47.90
63 $20.46 $37.72 $26.86 $50.52
64 $21.28 $39.36 $28.17 $53.14
65 $22.11 $41.01 $29.48 $55.76
66 $23.32 $43.44 $31.27 $59.35
67 $24.53 $45.86 $33.07 $62.93
68 $25.75 $48.29 $34.87 $66.53
69 $27.01 $50.81 $36.66 $70.11
70 $28.22 $53.24 $38.45 $73.70
71 $29.92 $56.63 $40.78 $78.36
72 $31.66 $60.12 $43.06 $82.92
73 $33.57 $63.93 $45.61 $88.01
74 $35.49 $67.78 $48.18 $93.16
75 $37.81 $72.41 $51.37 $99.53
76 $40.73 $78.25 $55.04 $106.87
77 $43.36 $83.51 $58.42 $113.64
78 $45.82 $88.44 $61.53 $119.86
79 $48.31 $93.41 $64.72 $126.23
80 $50.82 $98.43 $67.93 $132.65
81 $54.71 $106.21 $73.10 $143.00
82 $58.58 $113.96 $78.37 $153.54
83 $62.26 $121.31 $83.31 $163.41
84 $65.88 $128.55 $88.24 $173.28
85 $69.55 $135.90 $93.18 $183.15
86 $88.75 $174.17 $112.08 $220.83
87 $95.00 $186.67 $122.92 $242.50
88 $100.83 $198.33 $133.75 $264.17
89 $107.08 $210.83 $144.58 $285.83
Actually yes you can coverage on your parents even if they are 80 years or older. There are many reputable life insurance companies that offer coverage to folks in their 80s.
In fact, it’s still possible to get final expense coverage for people over 85.
Even though your mom or dad are in their 80’s, you can still get them coverage that fully protects them on the very first day of the policy!
For example, Mutual of Omaha’s Living Promise final expense policy is probably the best-priced policy for parents over 80. They will take applicants as old as 85, and it comes with immediate coverage if the policy is approved.
We do need to tell you that in order to get coverage that has no waiting period, they will need to qualify medically.
While we can’t say for sure if your parent who is older than 80 will medically qualify for immediate coverage, we can tell you that most do.
The best thing to do is call us and chat with one of our friendly agents. They will ask you a few questions about your mom or dad. Then they can determine if your parent will be eligible for coverage that has no waiting period.
Side Note: Please do not assume that you can’t get immediate benefit burial insurance for parents over 80. You have no idea how lenient the underwriting is with some of these final expense life insurance companies. There is an extremely good chance we can find them some funeral insurance company that will approve them for day one coverage. Take two minutes and call us to find out. We won’t put you through a sales pitch; we’ll just give it to you straight.
A 2016 survey from Go Banking Rates found that roughly 72% of Americans who are at least 65 years old have less than $5,000 in savings. This amount of cash simply is not enough to cover the cost of a funeral today.
Consequently, family members are often stuck in the precarious situation of dealing with the emotions of losing their loved one while simultaneously trying to guess how they would want to be remembered and how to pay for the funeral and other costs.
In general, most kids choose to buy a funeral policy on mom or dad for one simple reason.
Their parents have no means to pay for their final expenses. Rather than being stuck with a massive bill one day, kids take out a funeral policy on their parents now to ensure those expenses are covered whenever they pass on.
Being hit with a sudden $7,000-$10,000 bill can be a huge financial windfall for most American families. All too often we have had personal conversations with kids whose parents left them with a mountain of debt.
It’s sad to hear, but it can be avoided. This is why more and more kids today are preparing by buying funeral insurance for parents.
How Much A Funeral Costs
It’s no secret that funerals are expensive. In fact, they are one of the largest expenses one can incur in their lifetime.
On top of that, funeral costs are always rising just like any other product or service. According to current statistics, you can expect the cost of a funeral to double every 20 years.
The National Funeral Directors Association’s most recent report showed the difference in average burial cost for the years 2009 and 2012.
In 2009 the cost was $6,560. The cost in 2012 was $7,045 which is a 7.4% increase in just three years. As you can see, the cost is always rising and doing so rather quickly.
How much your parent’s funeral will cost will depend on whether or not they choose to have a traditional burial or a cremation service.
The cost difference between burial and cremation is huge.
- The average burial service presently costs anywhere from $7,000-$10,000.
- The average cremation service presently costs anywhere from $1,500-$5,000.
Granted, your parent’s final costs will be determined by the exact services you select for your parents. If you choose to have a bigger nicer service with more bells and whistles, expect to pay more than the average.
We’ve had many conversations with clients who attended family funerals that cost over $20,000. Albeit that’s rare, but it can happen.
So what’s the bottom line?
Ultimately, if you think your parents are just interested in a basic service, those average numbers above are perfect for deciding how much coverage you need to buy.
Conversely, if you feel like your parents will have a more extravagant funeral, you should consider buying more to account for that.
Once you’ve made the decision to head of the inevitable costs of your parent’s final expenses, the next step is to get your plan in place as soon as possible.
Many people make the mistake of dealing with this at a glacial pace. Please don’t entertain the delusion of thinking time is infinite. If you know you want a funeral policy for parents, get it done as soon as possible.
We say that for two simple reasons.
First and foremost, your parent’s health is a major factor in what they will qualify for, and how much it costs.
If you wait and their health takes a turn for the worse, it could mean much higher prices and possibly a waiting period before their policy goes into effect.
Here’s a fact.
It will not be cheaper than it is right now.
At the same time, if they were to pass away now or in the near future, there would be no insurance to pay for everything.
As you can see, waiting will not help you. It can only harm you.
Now that we got that out of the way, let’s talk about how you find what you are looking for.
We’ll begin by clearly defining what constitutes the best burial policy for your parents. After all, you can’t find something if you don’t know what you are looking for 🙂
There’s three criteria you want to look for in a burial policy for your parents.
- The insurance company is financially stable and has at least an A rating with A.M. Best
- It covers your parents as much as possible as soon as possible
- Cost-wise, it’s less than what other insurance companies would charge for the same thing
Here’s A Bulletproof Formula
Now that you know what you’re looking for, it’s time to find it. If you follow this simple and effective formula, you put yourself in the best position possible to find the best funeral policy for your parents.
To find the best burial insurance for your parents, it’s critical you consult with an independent burial insurance broker that represents at least 10 different final expense insurance companies.
Their job will be to take an assessment of your parent’s health, so they can determine which companies would view their health most favorably.
Then it would just be a matter of pulling quotes from all the various insurance companies they have access to. Ultimately, whichever one satisfies the three requirements above, is who they will recommend.
Obviously, if you are looking for burial coverage for your parents, we highly recommend you contact us. We fully believe that there is no other agency in the nation that is better equipped to help you with this.
If you’re thinking of taking out life insurance on grandparents, we can help insure them too.
We have a masterful knowledge of how each burial insurance company underwrites. This is true even though we represent over 15 different companies. This knowledge combined with our freedom shop around from any of the insurers we represent ensures that can surely find you the best deal.
If you choose to go elsewhere, just make sure the agency you work with has these qualities:
- They specialize in burial and final expense insurance
- As an agency, they represent at least 10 different insurance companies
If you work with an agency like that, you stand a really good chance at getting a good deal on a funeral policy for parents. With that, we hope you’ll allow us to show you why thousands of other people trusted us to help them with something as important as this.
The very first step would be to talk with you about what your objectives are, and about the health of the proposed insured (your parents). Just below you can see the kinds of questions we would ask you:
Remember this about these questions
We can very likely find you an insurance company(s) that will accept all of your parent’s health issues. We only ask these questions, so that we can see which companies would be the best fit for them.
If you say yes to any of these, it does not mean they won’t qualify or that they will pay more. These are routine questions we ask everyone.
We do so to ensure we have all the information we need to determine which burial insurance company would offer you the best deal.
Rest assured if there is a funeral insurance company that will offer them coverage with no waiting period, we will find it!
- How much coverage you interested in?
- Who will be paying for the coverage? (It’s perfectly fine if you or someone else will be paying for the policy)
- What medications are your parents taking?
- Do they have any chronic illnesses or diseases?
- Any hospitalizations within the last 24 months?
- Any heart attacks, strokes, or cancer ever?
Once we go through these questions, we will be able to do two things:
- Identify all the burial insurance companies that will accept all of your parent’s health issues
- Get you accurate quotes from each one to see which one comes back as the cheapest
We would then communicate all the quotes with you, and let you choose what’s best for your budget.
Processing The Application
When it comes to processing the application, it can be done in one of two ways. The application method will depend on which company you go with.
This is key
No matter which company you go with, your parents will not have to take a physical or medical exam, they will not have to let an agent into their home, and they will not need to provide their doctor records.
Burial insurance policies are always done on a simplified issue basis. That means the insurance companies will only ask health questions, and do an electronic prescription history check.
In addition, you won’t need to pay any money up front at the time of the application. You can choose when you want the payments to begin.
Some companies allow an application to be submitted and signed all by email. In this scenario, we would gather all the information needed to complete the application. In addition, we would ask the proposed insured the formal health questions. By law, we must ask the proposed insured these questions. We can go over them with you, but we still must ask them and hear their response.
We enter all the information into the system for whichever insurance company we are applying with.
Then you get an email from the insurance company. This allows you to review the application to make sure nothing is misspelled. Finally, you guys will click a couple of buttons to sign and submit it to the insurance company.
Generally speaking, companies that have an email signature process return a decision within a few business days.
That’s the entire process. There are no papers that need to be signed. If you are approved, you get a policy in the mail within 10 business days.
There are quite a few companies that will allow you to apply and sign for the application entirely over the phone. Essentially, we would begin by asking the proposed insured the formal health questions.
Afterward, we would gather all the information needed to complete the entire application. At this point, the agent would conference in the insurance company to formally process the application.
On this three-way call, the insurance company will review all the information about the proposed insured (date of birth, SS#, height, weight, etc), obtain some authorizations, and ask them the health questions.
They will take the insured signature via voice by having them say something like “Yes I agree”.
In the end, almost every voice signature company will give a final decision by the end of the call. These calls usually take 15-20 minutes on average.
After The Application
Whether you applied via email or voice signature, two things will happen after your parents are accepted.
First, we instantly mail you a welcome packet from our home office. This will include your agent’s business cards, a summary of your coverage, and a complimentary funeral planning guide.
At the same time, the insurance company will mail you the actual policy within a day or so. You should expect to receive your policy in less than 10 business days.
No matter what, there is nothing else you need to do. No paperwork needs to be signed, and nothing needs to be returned to us or the insurance company.
All you must do is keep an eye out in the mail, and prepare for your monthly payments that will occur on whatever day you selected.
If your parents were approved for instant coverage (most are), their coverage would go into full effect on whatever day you chose as the first payment day. From that day moving forward, if something happens to them, the insurance company would be willing to pay out the full death benefit.
Once you start searching for burial insurance for parents, you will inevitably run across some rather well-known insurance organizations that are eager to capture your business.
Your first impression will likely be that these companies are very reputable, notable, and trustworthy. While they may in fact be all three of those things, it does not mean they can get you the best deal.
So here’s the bottom line
All of these companies below pay tons of money to make sure you know their name, so you won’t consider if they are priced fairly or not. Ultimately, every single one of these companies listed below will charge you a lot more compared to what other reputable insurance companies charge for the exact same thing.
The choice is certainly yours. We find that our clients prefer to pay less for their burial insurance when all other things are equal. If that’s something you are interested in, avoid all these companies.
AARP (New York Life)
Many people think because AARP is an organization designed for senior advocacy, whatever they recommend surely is in your best interest right?
We can’t speak for their other lines of insurance, but for life insurance, we can conclusively state some indisputable truths.
First, the primary life insurance plan for burial expenses they sell is actually a term life insurance policy.
It’s a policy that completely expires once your parent turns 80 years old. At that point, you would have no coverage.
You can’t keep it going, and you don’t get any money back. Below is a screenshot from their website that explains how an AARP burial policy works.
In addition to the policy expiring, the price goes up every five years.
Burial insurance plans for parents are supposed to be permanent whole life coverage. AARP will market their term life plan as burial insurance, but it’s anything but.
Now they do have permanent coverage if you specifically request it (they will always push their term life plan by default). However, many other burial insurance companies offer the same permanent coverage for a much lower cost.
You can pay less by going with another insurance company.
Everyone knows them because of their spokesperson Alex Trebek. Just like AARP, they too spend big money to make their name well known as means to garner trust.
While they are not bad per say, the problem is their coverage is very costly.
In every scenario, you can spend less money for the exact same thing be avoiding Colonial Penn.
You might not know this, but Lincoln Heritage sells more final expense insurance than any other insurance company in the USA.
While that is an impressive feat, it’s not indicative of value.
The truth is their burial insurance coverage is extremely expensive. There is virtually no situation where their prices can’t be easily beaten by dozens of other insurance companies.
This is crazy
Their prices being high are bad, but they are honestly not the worst part about them.
The underwriting for their life insurance is the biggest killer.
Ultimately, they do not accept many common health issues that other companies accept. Instead, they charge applicants with these health issues anywhere from 100%-150% more.
In addition to these much higher rates, the client is also given a full two-year waiting period before their policy goes into effect.
Ultimately, there simply is no situation where Lincoln Heritage can offer you a funeral policy for parents at a better rate than multiple other companies.