Buy Final Expense Insurance for My Parents to Secure Their Future

Buying final expense insurance for your parents can be a thoughtful and responsible decision to secure their future. This type of insurance can help cover funeral expenses, medical bills, and other final costs.

The average cost of a funeral in the US is around $7,000 to $10,000, which can be a significant burden for your parents to pay out of pocket. This is why final expense insurance can be a vital safety net.

As your parents age, their healthcare needs may increase, and medical bills can add up quickly. Final expense insurance can help cover these costs, giving you peace of mind knowing that your parents' medical expenses are taken care of.

By purchasing final expense insurance, you can help protect your parents' assets and ensure that they are not left with a significant financial burden in their final years.

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Funerals are expensive, with the average cost coming in at around $8,000.

You might be surprised to learn that many families have additional costs to worry about after a loved one passes away, such as hospital bills.

If your parents haven't planned for the funeral expenses, you're likely the one who'll foot the bill.

The cost can add up quickly, with some families needing to pay $15,000 to $25,000 or more.

Burial insurance is a way to use leverage to pay for these expenses, allowing you to pay a low premium for a larger payout.

For example, a 50-year-old man could get $10,000 in burial insurance for just $31 a month.

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Working with an independent agency like Choice Mutual is a great way to find the best life insurance option for your parents. They represent multiple insurance providers, allowing them to analyze each company and find the best policy without favoring one provider over another.

It's essential to compare various policies to find the best burial insurance plan, as each company's policies vary significantly in price, underwriting, coverage limits, and waiting periods. You can also consider guaranteed issue whole life insurance, which provides $5,000 to $25,000 in coverage for a fixed rate, with premiums starting at $22 per month.

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To determine the right policy, consider the average cost of a funeral, which is around $9,000 or more, depending on the type of service. You'll also want to factor in additional services, such as transporting the remains, using a funeral home for viewing, and purchasing a tombstone or burial plot.

Insurance is a straightforward concept, but the life insurance industry likes to make it more complicated than it needs to be. Burial insurance, for instance, is simply a whole life insurance policy with a small death benefit.

It's called by different names, such as funeral insurance, burial expense insurance, final expense insurance, and end-of-life insurance. These names all refer to the same thing: a small, whole life insurance policy designed to pay for burial and funeral expenses, and any other extraneous costs.

The main benefit of burial insurance is control. You can use the death benefit to organize your parent's funeral and burial, and some carriers even allow you to assign the death benefit to the funeral home. However, I generally don't recommend that, as it's better to be in control of the death benefit.

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A key advantage of burial insurance is that the death benefit is income-tax free. This can be a significant plus, especially when dealing with the emotional and financial stress of losing a loved one.

Here are some alternative names for burial insurance:

These names all refer to the same type of policy, which is designed to provide a small death benefit to help cover burial and funeral expenses.

Don't fall for misleading mailings or TV commercials that promise easy approval for burial insurance on your parents.

These applications are often sent out in bulk and may not be tailored to your parents' specific needs.

Filling out these applications without doing your research can lead to uncertainty about whether you've chosen the right policy.

If you're approved, you may not know if it's the best option for your parents.

Declined applications can even affect your MIB, potentially limiting your ability to get a policy that you qualify for.

Term insurance is not the same as burial insurance, and these "$9.95" plans on TV are often a bad idea.

You may end up overspending on a policy that doesn't meet your parents' needs.

This can lead to disappointment and uncertainty when making a claim.

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You're likely wondering if a Final Expense Life Insurance policy is right for you. The truth is, it can provide additional financial protection to families of seniors, retired individuals, or individuals with underlying or chronic health conditions. This type of insurance can be especially helpful for those between the ages of 50 and 80, who are guaranteed coverage with no medical exams or health questions.

The policy amount paid can be spent where intended, which is usually on funeral expenses. The average funeral costs about $8,000, and hospital bills can add up quickly. This is where burial insurance comes in – it can help cover these costs and prevent financial burdens on loved ones.

Here are some example monthly premiums for $10,000 of burial insurance:

Keep in mind that these rates are based on a $10,000 coverage policy and can vary based on issue age, gender, and coverage amount.

To choose the right policy, you'll need to consider your parents' requirements. They must have a Social Security number or Taxpayer Identification Number (TIN), and be physically located in the USA when applying.

They must also have the mental capacity to sign a legal contract and consent to you buying the policy on their behalf. This is non-negotiable, and insurance companies will not waive these requirements under any circumstance.

To qualify for a policy with no waiting period, your parents will need to answer health questions when applying. They must also sign the application, which can be done in various ways.

Here are the requirements in a quick checklist format:

When buying a burial insurance policy, it's essential to compare various options to find the best fit. Each company's policies vary significantly in price, underwriting, coverage limits, and waiting periods.

Working with an independent agency like Choice Mutual can be beneficial. They represent multiple insurance providers, allowing them to analyze each company and find the best life insurance option for you.

Captive insurance companies, on the other hand, only allow their agents to represent one provider. For example, State Farm is a captive life insurance company, meaning their agents can only offer State Farm policies.

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There's no cost, fee, or upcharge to the insurance when buying through an independent agency like Choice Mutual. They'll answer all your questions and find you the best, least expensive policy possible.

Here are some key factors to consider when comparing policies:

The type and cost of life insurance available will depend on your parent's health history. This information is crucial in determining the best policy for them. Ask your parents about their height and weight, medication, hospitalizations, and health conditions diagnosed and treated in the last 5 years.

The amount of death benefit you need is a crucial factor in choosing the right policy. You can calculate this by looking at your monthly household expenses, immediate needs, and potential funeral expenses.

The average cost of a funeral is around $9,000 or more, depending on the type of service. This cost may not include additional services like transporting the remains, using a funeral home for viewing, purchasing a tombstone, or purchasing a burial plot.

To determine your death benefit amount, consider how much money you'd like to guarantee for your beneficiaries. A good rule of thumb is to look at your monthly expenses and factor in funeral costs.

Here are some factors to consider when choosing your death benefit amount:

A handful of factors influence how much final expense life insurance you truly need. We recommend looking at your monthly expenses to help determine how much money you’d like to guarantee your beneficiaries.

The payout benefits from final expense insurance can be applied to any post-mortem debts, but are typically used for funeral expenses, burials or cremations, and end of life medical expenses and outstanding debts.

With final expense insurance, you can expect competitive, fixed premiums that don't change over time. This provides peace of mind and stability for your parents.

The cash benefit from final expense insurance can help cover funeral and burial costs, medical needs, or anything else that will help loved ones. This can be a huge relief for the family during a difficult time.

Here are some key features of final expense insurance:

Your final expense insurance policy benefits can be applied to a variety of post-mortem expenses, including funeral costs, burials, cremations, and end-of-life medical expenses.

The cash benefit from your policy can also be used to cover any outstanding debts, giving your loved ones peace of mind during a difficult time.

Funeral expenses are a significant burden for many families, but with final expense insurance, you can ensure that your loved ones have the funds they need to say goodbye in a dignified manner.

The payout benefits from your policy can be applied to any post-mortem debts, but are typically used for funeral expenses, burials or cremations, and end of life medical expenses.

Here are some examples of how your policy benefits can be used:

Keep in mind that these are just examples, and the specific benefits and limitations of your policy will depend on your individual circumstances and the terms of your policy.

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The level benefit amounts for this policy are quite straightforward. The minimum death benefit is $5,000, and the maximum benefit varies depending on your age at issue.

Here's a breakdown of the maximum death benefit amounts based on your issue age:

If you pass away due to an accident, you'll receive the full face value of your policy, which is a nice bonus.

Final expense insurance costs typically range from $50 to $100 per month, depending on age, health, and other factors. The exact price depends on your individual circumstances, including the amount of coverage you want.

A $5,000 policy can cost as little as $12 per month for a 40-year-old, but increases to $68 per month for an 85-year-old. A $25,000 policy can cost $47 per month for a 40-year-old, but jumps to $335 per month for an 85-year-old.

Here's a breakdown of estimated monthly costs for a $5,000, $10,000, and $25,000 policy at different ages:

Keep in mind that these prices are estimates and may vary depending on your individual circumstances. It's essential to research and compare prices from different insurance providers to find the best option for your parents.

The cost of final expense insurance is a crucial factor to consider when determining how much coverage you need. Typically, it costs between $50 and $100 per month, depending on your age, gender, health, tobacco usage, state of residence, and the amount of coverage you want.

The exact price depends on several factors, including your age. For example, at 40 years old, a $5,000 policy costs around $12 per month, while a $25,000 policy costs around $47 per month.

Here are some sample monthly prices for different ages and coverage amounts:

Keep in mind that these prices are based on a non-tobacco rating and are valid as of 01/15/2025.

In addition to the cost of the insurance, you should also consider the cost of a funeral, which can range from $8,300 to $9,995, depending on the type of service. Direct burial or direct cremation can be a more affordable option, with average costs of $5,128 and $2,196, respectively.

You can get a quote for Aflac Final Expense Life Insurance, which provides full face value from policy issue if death is due to an accident or natural causes.

To get a quote, you'll need to apply for the plan, after which you'll be offered the best value based upon your age and health questionnaire responses.

Aflac offers two final expense life insurance plans, but the specifics of each plan are not detailed in the provided article sections.

You can apply for Aflac final expense life insurance by following a few steps, but the exact process is not outlined in the article sections.

The cost of Aflac Final Expense Life Insurance is not explicitly stated in the article sections, but it's mentioned that final expense insurance may be a more affordable option for those who want to provide better financial support for their loved ones.

Here's a summary of the coverage offered by Aflac Final Expense Life Insurance:

Applying for final expense insurance for your parents is a relatively straightforward process. Anyone applying for burial insurance must go through an underwriting process.

There are a few simple steps involved: answering a carrier's health questionnaire, MIB and prescription drug look-up, and possibly a phone interview with an underwriter. No medical or health exams are required, and agents don't need to come into your home.

You'll have a decision on your application within a few days, sometimes even instantaneously. The carrier will review your application and make a decision quickly and efficiently.

The underwriting process for burial insurance is straightforward. It involves answering a carrier's health questionnaire, MIB and prescription drug look-up, and possibly a phone interview with an underwriter.

There are no medical or health exams required, and agents don't need to come to your home. The entire process is handled over the phone.

The carrier makes the decision on your application within a few days, sometimes as quickly as instantaneously. Decisions may take a day or two, but you'll have a decision within a short timeframe.

Here's a breakdown of the underwriting process:

You really can't get burial insurance on your parents without their knowing, as they'll need to consent to their health history.

There is one exception - if you have a Power of Attorney (POA) or guardianship over your parents, you can sign the application on their behalf.

You'll need to provide proof of your POA or guardianship to the insurance company.

This will give you the authority to make decisions on their behalf, including applying for burial insurance.

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If your parents have pre-existing medical conditions, you'll want to consider that when shopping for final expense insurance.

The cost of premiums can be higher if your parents have health issues, so it's essential to factor this into your decision.

Some final expense insurance policies may not cover pre-existing conditions, so be sure to read the fine print before buying.

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To buy burial insurance for your parents, you'll need to meet two key requirements. Insurable interest is a must, and it's a standard regulation in the insurance industry. This means you must suffer a financial loss if your parent passes away.

You also need your parent's consent to review their medical history. This is a requirement that follows HIPAA, the Health Information Portability And Accountability Act. The carrier will review your parent's MIB, prescription drug history, and other records.

These two requirements are non-negotiable, and without them, you won't be able to buy burial insurance for your parents.

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You shouldn't worry if your parents are disabled or on Medicaid - burial insurance is still available. Many people with disabilities have successfully obtained burial insurance through our help.

Disabled individuals can indeed purchase burial insurance, and Medicaid is not a disqualifying factor. Being on Medicaid does require a careful approach, but it's not impossible.

As long as your parents are not the owner of the policy, their Medicaid benefits should stay intact. This is a crucial point to keep in mind when exploring burial insurance options.

You, as the son or daughter, can be the owner and beneficiary of the policy, provided you yourself are not on Medicaid. This is one way people on Medicaid can purchase life insurance.

It's essential to note that state laws differ, so please seek out an elder-law attorney in your state before applying for a policy.

Additional reading: Who Is the Insured on a Life Insurance Policy

To get started with buying final expense insurance for your parents, you'll need to have an insurable interest, which you have as their child. This is a requirement for purchasing burial insurance.

You'll also need to have your parents consent to the review of their health history. This is a necessary step in the process.

First, you'll need to determine the death benefit, which will be influenced by your parent's health. Their health will ultimately determine the burial insurance options available to you.