Life insurance for seniors over age 65 in general are purchased while we are still young and in our prime. In fact, life insurance for seniors over age 65 are in huge demand right now. These are affordable policies and the benefit can go as low as $5,000 to as high as $50,000 for seniors. For the most part it is permanent and last as long as the senior is living.
We all get older, that’s what makes us mortal. Unlike Benjamin Button in The Curious Case of Benjamin Button (movie starring Brad Pitt and Cate Blanchett), we grow old and eventually pass away. That is a fact of life and there is no escape. The only way to escape this is when we find the fountain of youth or become ageless vampires, whichever comes first.
Purchasing life insurance for seniors is possible but you must expect that there will be lower benefit amounts despite the higher costs that you have to pay. This is why you should not wait any longer. When you get the chance, you have to seek what kind of insurance you qualify for. Insurance companies guarantee that benefits from life insurance policies cannot decrease when one reaches beyond the age of 80. Some companies offer decreasing benefits so be careful.
When shopping for life insurance, like life insurance for parents, you must look into policies that are 1st day coverage. It’s like car insurance. Once you sign up, you want insurance to take effect immediately and not have to wait 2 years for the benefit to become in force.
In addition to burial insurance or life insurance for over 65 ,there are some insurance policies that allow people beyond a specific age to access a part of their money in advance if their doctor has already diagnosed them as being terminally ill. They can use this money for medical bills and other expenses.
Once the policy holder dies, they can access the benefit after filing the claim. There are also some insurance policies that pay the monthly premium for missed payment. As long as the policy holder can show proof for missed payment then the insurance carrier will make the payment. These are called riders if you want these as an added option or upgrade.
Term Insurance vs Whole Life Insurance
When you buy life insurance, these two terms often come up. The main differences between the two kinds of insurance are the following:
- Term life insurance costs less than whole life insurance because it has an expiration or an end date. Policies range from 10 to 30 years are usually the longest term that can be made available for you, depending on your age.
- Whole life insurance has no end. It lasts for the rest of your life or it’s permanent. The upside to this is that the beneficiaries can be guaranteed payout even after they die.
- Whole life insurance also accumulates a “cash value.” This makes it possible for you to access this even when you are still alive. Term life insurance, on the other hand, does not have this. Once gone, your surviving family members can still receive the full benefit amount and use this for burial or funeral expenses.
Total Costs of Funerals
Nowadays, funeral and burial costs amount in between $7,000 to $12,000. This includes funeral home services, burial in cemetery grounds and installation of headstones. Others opt for cremation and this is quickly becoming popular. However, the traditional funeral is still common when disposing the deceased.
Here’s a rundown on funeral and burial costs:
$1500 for funeral director fees
$2300 for caskets
$500 for embalming
$500 for the funeral home and the funeral service
$1000 for the grave site
$600 for digging the grave
$1000 for the burial container or the grave liner
$1500 for headstone
From that example alone, one can conclude the total costs amount to $9000 and those are just the main costs. Additional charges like putting the information in the obituary and flowers and food for people who go to the service are does not include in that amount.
In order to save, you should look at funeral insurance or life insurance for seniors. Obviously, retirement plans that you make must involve figuring out how to make money until the very end of our lives. We do this so we do not have to burden our loved ones with the expenses from our hospital bills and funeral. Whether or not you buy a burial insurance or funeral insurance, deciding on which policy to invest in can be a difficult decision. This is because funeral insurance, just like a life insurance, has its own language.
Life Insurance for Seniors over age 65 and Funeral Insurance
Funeral insurance is also known as burial insurance or final expense insurance. Most commonly refer it as pre-need insurance. Here are steps on how you can buy funeral insurance.
- Estimate how much your final expenses can be.
- Figure out if you are able to leave enough money to your loved ones.
- Ask family members if you need the funeral insurance.
- Choose the insurance that is within your budget.
- Get a quote from a broker. Go for insurance brokers that have no limits on insurance companies. If you approach an agent, they will only recommend the company that they are working for.
- Check if you can afford the coverage.
- Choose a funeral insurance
Life insurance for seniors over age 65 also cover debts. This is another reason why you should look into this so your debts won’t haunt your loved ones after you die. Life insurance is exempt from creditors and the amount of the exemption also varies depending on the state that you are in. If there are creditors while you are alive, you cannot get the cash value. However, when you die, the money from the insurance or what remains of it can be passed to your spouse as well as your children. In that way, creditors won’t be able to reach it.