As our parents grow older, many of us start thinking about how to ensure their final expenses are covered without placing a financial burden on ourselves or other family members. One way to plan ahead and provide peace of mind is by purchasing burial insurance for your parents. Burial insurance, also known as final expense insurance, is specifically designed to cover funeral costs, burial or cremation expenses, and other end-of-life costs.
In this blog, we’ll answer the question, “Can I purchase burial insurance for my parents?” and explore the details of how to go about securing coverage for them.
What Is Burial Insurance?
Burial insurance is a type of life insurance that focuses on covering the costs associated with end-of-life expenses. These policies typically offer lower coverage amounts, ranging from $5,000 to $25,000, which are designed to cover funeral services, burial or cremation costs, and any remaining medical bills or minor debts.
Unlike traditional life insurance, which may have higher coverage amounts and broader financial purposes, burial insurance is a more affordable, targeted solution for those who want to ensure that funeral expenses are taken care of without straining their family’s finances.
Can I Buy Burial Insurance for My Parents?
Yes, you can purchase burial insurance for your parents, provided you have their consent. Insurance companies require the person being insured to be aware of and consent to the policy. You will also need certain personal and health information from your parents to complete the application. Once the policy is in place, you can be the payer of the premiums, ensuring that your parents’ end-of-life expenses will be covered without any surprises.
Why Buy Burial Insurance for Your Parents?
Purchasing burial insurance for your parents can be an important step in financial planning, particularly if they do not have a life insurance policy or sufficient savings to cover funeral expenses. Funerals can be costly, with average funeral costs in the U.S. ranging from $7,000 to $12,000 or more, depending on the services chosen.
Here are a few key reasons why purchasing burial insurance for your parents might be a wise decision:
- Financial Protection for Your Family
Without burial insurance, the costs of your parents’ funeral, burial, or cremation may fall on you and other family members. By securing burial insurance, you ensure that there is a dedicated fund to cover these expenses, relieving your family from the financial stress of paying for a funeral. - Affordability and Predictability
Burial insurance policies are often more affordable than traditional life insurance, and the premiums remain level throughout the life of the policy. This predictability helps you plan your finances and ensures that coverage remains in place without rising costs. - Quick and Easy Approval Process
Burial insurance is designed to be accessible and easy to qualify for, even for older individuals or those with health issues. Policies like guaranteed acceptance burial insurance don’t require medical exams or health questions, making it simple to get coverage for your parents, regardless of their health status. - Peace of Mind for You and Your Parents
Knowing that your parents’ funeral expenses are covered can bring peace of mind to both you and your parents. They won’t have to worry about leaving behind a financial burden, and you can feel secure knowing that these expenses won’t add stress to an already difficult time.
Types of Burial Insurance for Parents
When purchasing burial insurance for your parents, there are a few different types of policies to consider. Each type offers different levels of coverage and eligibility requirements.
- Simplified Issue Burial Insurance
Simplified issue burial insurance requires your parents to answer a few basic health questions but does not require a full medical exam. This type of policy is designed for individuals with relatively manageable health conditions. If your parents are in reasonably good health, they may qualify for this type of policy, which often comes with more affordable premiums. - Guaranteed Acceptance Burial Insurance
Guaranteed acceptance burial insurance is a policy that does not require any health questions or medical exams. It is available to anyone who meets the age requirements, making it ideal for individuals with serious health conditions. If your parents have significant medical issues or are elderly, this might be the best option. The downside is that guaranteed acceptance policies often come with a waiting period, usually two years, during which the full death benefit is not available. - Graded Benefit Burial Insurance
Graded benefit policies provide a partial death benefit if the insured passes away within the first two to three years of the policy. After this waiting period, the full benefit is available. This type of policy is often a middle-ground option for individuals with moderate health conditions.
What Information Do You Need to Buy Burial Insurance for Your Parents?
To purchase burial insurance for your parents, you’ll need some personal and health-related information about them. The process is generally simple and requires the following details:
- Personal Information: Full name, date of birth, address, Social Security number, and contact information.
- Health Information: For simplified issue policies, you may need basic health details, such as whether your parents have any major medical conditions or hospitalizations. For guaranteed acceptance policies, no health information is required.
- Consent: Your parents must provide consent to be insured. You cannot take out a policy on someone’s life without their knowledge and approval.
- Beneficiary Information: You’ll need to designate a beneficiary who will receive the death benefit when the policyholder passes away. This is often a family member or close relative who will use the funds to cover funeral costs.
How Much Does Burial Insurance Cost?
The cost of burial insurance depends on several factors, including your parents’ age, health, and the type of policy you choose. Generally, premiums for burial insurance are affordable, and because the coverage amounts are smaller than traditional life insurance, the costs are more manageable. Additionally, burial insurance policies have fixed premiums, meaning the cost will not increase as your parents get older.
To ensure you get the best rates, it’s important to compare quotes from different insurance providers. Policy Ocean specializes in helping individuals compare rates and find the most affordable burial insurance policies for their loved ones.
How We Can Help
At Policy Ocean, we understand the importance of planning ahead and ensuring that your family is financially protected. If you’re considering purchasing burial insurance for your parents, we can help guide you through the process and compare rates from different insurers to find the best coverage at the most affordable price. Whether you’re looking for simplified issue, guaranteed acceptance, or graded benefit policies, we’re here to help you make the right decision for your family’s future.
For personalized assistance and to explore burial insurance options for your parents, contact Policy Ocean today. Let us help you secure the peace of mind that burial insurance provides for both you and your loved ones.
