Discussing Burial Insurance

Funerals are becoming more expensive and can place a significant burden on the children left behind. Older parents may not have a life insurance policy in place to offset the cost and may not realize how much more expensive it's become.

If you have elderly parents, it may be time to sit down to discuss their final expenses and possibly purchase burial insurance coverage for them.

What Is Final Expense Insurance?

Acquiring burial insurance is both affordable and hassle-free, even for seniors, as it does not require a medical exam. A simple set of questions from your insurance agent is all that is required to secure coverage for your parents, ensuring their protection throughout their lifetime.

Burial insurance and cremation insurance policies fall under the category of permanent life insurance or whole life insurance, offering a death benefit that typically ranges from $5,000 to $35,000. These policies aren't constrained by a specific term or coverage period, and they remain in effect as long as the premiums are consistently paid.

These final expense insurance policies also come with a cash value component that allows for the accumulation of savings over time. Generally, burial insurance is available to individuals between the ages of 50 and 85, although a few insurance companies extend coverage to those up to and including age 89.

Why Should You Buy Final Expense Life Insurance For Your Parents?

There are a few reasons why you might want to look into final expense insurance for your parents:

Covering Final Arrangement Costs

Funerals have become increasingly expensive, and this trend is expected to continue. Many families underestimate the high costs associated with funeral services, whether it's for a traditional burial or cremation, and the various additional expenses like caskets, urns, flowers, obituaries, transportation, and the use of a funeral home for viewings. Caskets alone can run into thousands of dollars. Life insurance can help alleviate the financial burden of these expenses.

Assisting with Medical Bills

The last years of a person's life can be financially challenging, especially when it comes to medical expenses. Depending on their health, your parents may require costly medications, medical treatments, frequent doctor or hospital visits, and even around-the-clock care. In some cases, they may need hospice care during their final days. These medical costs can be overwhelming, especially if you have your own family to support. Having a small life insurance policy can help cover any outstanding medical bills and ease the financial strain.

Supporting Relocation for the Surviving Parent

When one of your parents passes away, the other parent may find it difficult to continue living alone. Many children choose to move their remaining parents closer if they live far away or transition into an assisted living community. The process of selling their home and relocating can incur significant expenses, often totaling thousands of dollars or more. Purchasing life insurance for your parents can provide financial support to cover these costs, sparing you and your loved ones from shouldering the burden of these expenses.

Buying a Life Insurance Policy for Parents

When it comes to purchasing life insurance, we often focus on coverage for ourselves. Remember that the primary purpose of buying life insurance is to shield our loved ones from the financial burdens they might face when we die.

In many cases, when a parent passes away, surviving family members are left grappling with various bills and may lack the necessary resources to manage end-of-life expenses, including medical bills and hospice care. The cost of arranging a funeral can add to the financial strain.

To protect yourself from enduring financial hardship when your parents pass away, consider the following steps for purchasing life insurance on their behalf:

Initiate a conversation with your parents about the benefits of burial insurance

While discussing death may feel uncomfortable and awkward, it is a crucial step in preparing for the future. Think about it: your parents wouldn't want to burden you when they're no longer here. Having burial insurance for your parents can alleviate this financial burden, ensuring that all final expenses are covered and provide everyone with some peace of mind. Your parents may have been thinking about this topic already, and might not know about the options available to them.

Determine the coverage amount they need

Funerals can easily cost $10,000 or more when you consider the average cost of a basic funeral, along with all of the additional extras: the transportation of the remains, the viewing, the grave marker or urn, flowers, catering and traveling to the funeral from out of state. You can do a little online research about the cost of the funerals in your state, and factor in any additional expenses, like medical bills and travel, you might want to cover. This will help you determine the appropriate amount of life insurance to purchase.

Find a policy tailored to their needs

Not all policies are equal—lower premiums may not offer the right coverage, and your parents’ age or health could limit options. Working with a provider like Final Expense Direct can help you find a plan that fits their needs.

Decide who will own and pay for the policy

You'll also need your parents’ consent and signature, and they’ll likely answer a few health questions. Since you're financially affected by their passing, you meet the “insurable interest” requirement needed to apply.

Choosing Life Insurance For Your Parents

Parents nearing or entering retirement years generally find whole life insurance to be the preferred option. These policies typically accumulate cash value and provide continuous coverage as long as premiums are paid without a predetermined time limit. You can qualify for whole life insurance without undergoing a medical examination, even if you've faced challenges in qualifying previously. Securing a low premium rate early on is essential, as it depends on your age and health. Seniors aged 60 and older, particularly those in their 70s and 80s, typically face higher insurance rates compared to younger parents due mainly to their increased age and health conditions. 

• Ask them a few important questions before choosing a burial insurance policy, such as:
• What kind of burial insurance policies are you interested in?
• Are you taking any chronic medications?
• Do you have a pre-existing medical condition that might lead to life insurance companies deeming you a higher risk?
• Have you been hospitalized for anything in the last two years?
• What are your final wishes for your funeral?
• Where would you like to be buried?
• Do you have any policies with life insurance companies already?

This will give you an indication of how much life insurance you might need and what type of policy they could qualify for. For example, if your parent is in remission from cancer or recently had a stroke, they may need to apply for guaranteed acceptance life insurance as they are seen as being at higher risk.

How Much Coverage Do My Parents Need?

Understanding funeral costs is essential for making informed decisions about burial insurance policies. According to our data, the average cost of a simple funeral is just under $7000, but individual funeral expenses can be much higher depending on where you live.

Here are some common funeral service options and their associated costs:

Funeral costs can vary widely. A direct burial without a ceremony averages around $6,980, while a full traditional funeral with viewing and service can reach $10,805 or more. Even simpler options like a viewing-only ceremony or a basic service typically cost between $7,400 and $7,900. Additional expenses—such as embalming (~$683), a casket (~$1,244+), hearse transport (~$318), grave markers, and plot fees—can add significantly to the total.

It's important to take these figures into account when buying final expense insurance. Burial insurance companies vary in terms of the coverage they offer and their underwriting, so you may need to shop around to find a life insurance company that meets your needs.

How to Find the Best Burial Insurance for Your Parents

To start, look for a plan that can help cover the costs of a funeral. Check out different burial insurance policies and what they offer. It's a good idea to compare plans from various insurance companies to find one that suits your budget.

When you apply, you’ll be the policy owner and beneficiary, but your parents must consent—usually through an electronic or voice signature. Insurers often require a brief call with your parents to confirm understanding. Most companies offer coverage starting at age 50, with maximum eligibility up to age 85, though some extend it to 89. This makes it a solid option for older parents, especially those with health issues.

Here's what to look for when searching for burial insurance:

1. Financial Stability: Choose an insurance company that has a strong financial history and can pay out claims reliably.
2. Quick Coverage: Find a policy that can get your parents covered as soon as possible.
3. Affordable Payments: Pick a policy with a low monthly payment to keep it budget-friendly.

FAQs

Can You Get Insurance for Your Parents Without Their Consent?

You’ll usually need your parents’ consent to get insurance for them. If the conversation feels difficult, that’s normal—just explain that you want to honor their wishes and ensure their final plans are covered.

How Much Insurance Should You Get?

The right amount of insurance is different for each person. You should think about your parents' debts, the bills they have to pay every month, and the kind of funeral they'd like. Funerals are expensive. Most Americans can't easily pay thousands of dollars at a moment's notice. To help cover your parents' funeral costs, you should look into final expense insurance. It's made just for these kinds of expenses, like unpaid medical bills and funeral costs.

How Much Will Burial Insurance Cost?

The price of insurance depends on a few things, but the most important is how old the person getting insured is and how healthy they are. Some types of insurance are cheaper, like term insurance, but it can be hard to get if you have health problems and you might need a medical exam. Whole life insurance usually costs more, but it has some extra benefits that term insurance doesn't have, like cash value, it doesn’t expire after a term, and has faster payments in some cases.

Can You Get Burial Insurance for Parents Over 80?

Many insurance companies that offer burial insurance will cover people up to age 85. You can get coverage for your mom or dad even if they're over 80. A lot of times, there's no waiting period, so the insurance starts right away if they meet the health requirements.

Ensure Peace of Mind with Final Expense Direct

Purchasing burial insurance for your parents is a caring and practical way to protect your family from unexpected financial burdens during a difficult time. It ensures their wishes are honored and expenses are covered.

At Final Expense Direct, we offer customized policies to help with funeral costs, medical bills, and other end-of-life expenses. Clear, honest conversations with your parents are key to choosing the right plan.

Consider their debts, monthly bills, and final wishes. With average funeral costs ranging from $7,000 to $10,000, having the right coverage can ease emotional and financial stress.

Whether your parents are in their 60s or over 80, rest assured that Final Expense Direct offers burial insurance options to provide immediate coverage without waiting periods, granting peace of mind to both you and your loved ones.

If you are interested in purchasing burial insurance for your parents, have questions about the types of policies available, or need assistance understanding the process, contact Final Expense Direct today. Our experienced agents are ready to provide a free quote and any information you might need to make this important decision.

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