Funeral Insurance: Is It Right For You?

Funeral insurance is a type of life insurance that does not require a medical examination. In the absence of a health exam, your insurance policy may have graded death benefits. Seniors can purchase funeral insurance up to $10,000. Contact your broker to find out more.

Many insurance companies offer senior citizens an annual lump sum rather than monthly payments. Shelter bay, for example, can shop the market on your behalf. Find out more about funeral insurance here.

Funeral insurance facts you should know

Funeral insurance for seniors can include a critical illness rider that can provide a lump sum for medical expenses. The age range is between 50 and 80 years old for funeral insurance. If you are 65 years old, you should purchase your policy during the year’s first six months. Brokers can shop for funeral insurance on behalf of seniors and are compensated through commissions on the products they sell.

Funeral insurance coverage can vary depending on several factors, including the casket or cremation, the number of flowers, the viewing, and whether refreshments are provided. If you are considering cremation, you should obtain insurance coverage of $5,000 and $10,000 to $15,000 in Canada. Funeral insurance for seniors is determined by the type of funeral desired and the type of policy purchased. Men 65-75 years old can get funeral insurance coverage for $37-$74 per month, depending on their income. Because burial insurance requires little or no medical information, a healthy 50-year-old male can obtain $100,000 in term life insurance for less than $1,000 in burial insurance.

Standard/traditional insurance is the most affordable option for “young” seniors in good health. Consider the stress of being diagnosed with terminal cancer and being unable to obtain life or funeral insurance.

Life insurances covering funeral expenses

If you want a life insurance policy that covers funeral expenses, you should make sure that you purchase enough insurance to cover the type of funeral you desire.

  • Term life insurance is the most cost-effective way to cover a specific financial obligation.
  • Whole life insurance is more expensive than term life insurance, but it provides coverage for the rest of your life.
  • Life insurance payouts are not mandatory for funeral expenses, and beneficiaries can use the money to pay off debts or take a vacation.
  • Pre-need insurance is another option for paying for a funeral, but the payout is made directly to the funeral home. Pre-need insurance can help reduce guesswork and stress by eliminating the need for loved ones to negotiate payment, but it can also be a significant disadvantage. Pre-need insurance is typically subject to the Federal Trade Commission’s “3-day cooling-off rule,” which allows consumers to cancel their plans within three days of purchase.

Term life insurance is cheaper than burial insurance, but you risk outliving the policy. If you decide that burial insurance is not the best option for you, you can set up a payable on death (POD) account or a Totten Trust. Life insurance policies can be held in trust and used to pay for funeral expenses.

Stephen Brewster

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