Burial insurance for seniors protects your family from a huge financial burden. According to experts like Gary P. Cubeta from “Insurance for final expenses”, one of the top-rated policies to cover end-of-life expenses is the AARP burial insurance.
Also commonly known as final expense insurance policies, these are not life insurance products. The primary difference is that under life policies, your beneficiary will receive payment almost immediately. It does not go through probate.
However, burial insurance covers death-related costs.
Aging brings a lot of troubles, such as financial problems or reduced life spans. An excellent senior life insurance plan aims to provide the kin of a deceased person with peace of mind in the event of an expected death.
Here are the parameters to check in the prospective insurance provider:
Many life insurance policies that go by term life plans, whole life, or mature insurance coverage calculate premiums based on your age. Some take another measure of time into account.
Decide which timeframe is ideal for your specific circumstances and requirements. Most have a high maturity age of around 100, considering it is unlikely for an average person to outlive that. If this period passes and you live past it, you will directly receive the death benefit.
In order to pay full death benefits to your beneficiary, many companies impose a waiting period of two years. Suppose you pass away unexpectedly during this 2-year waiting period. In such a case, a beneficiary of your choosing will receive a 110% of the total premiums that you paid.
But the payment will be at the discretion of the insurance provider or per the terms of the policy. At the same time, there will be no death benefit. Furthermore, certain accidental death situations may not have this waiting period.
You may have noticed how many general insurance and life insurance policy premiums go up every year. But as you age, you may be looking to reduce expenses. Hence, choose an insurance plan with locked-in rates.
The premiums will never increase until the policy lapses, or you choose to raise the death benefit amount. Besides, the company cannot cancel your insurance coverage unless you stop paying or lied on the application.
For seniors, there will be some minor health complaints associated with aging. You must not be disqualified for such problems. If your prospective insurance provider focuses solely on those issues, you may be better off looking elsewhere.
For this reason, choose a policy that lists very few and valid health questions. The insurance should have guaranteed acceptance and minimal medical exams. Therefore, this is also why you can benefit from higher maturity amounts when you pick something that suits your health condition.
There is no use if you cannot choose from a variety of plans. But to do that, you need to know their differences:
Simplified Issue: You may have to face a series of questions related to your medical history. But there is no need for medical examinations. Your qualification for insurance depends on certain factors like a smoking habit or participation in risky activities.
Pre-need Insurance: Policies like AARP Burial Insurance require signing a contract with your choice of a funeral service provider. The details of the services offered and specific products you select will be listed in this agreement. Here, the amount does not go to your beneficiary.
Guaranteed Issue: As mentioned above, guaranteed issue policies do not need you to undergo any medical exams or answer such questions. However, this kind of policy is more of a risk to the insurer.
However, you will have modified benefits, such as a waiting period. Even full benefits will be paid only in the event of accidental deaths.
Besides, you pay more premium for this policy compared to other products. Hence, it is better to shop around for affordable plans in your budget range and needs.