Funeral Coverage  For Your Parents or Extended Family

Concept & Plan Highlights

  • Affordable options, Insured must know about  The Policy
  • Lenient Health Underwriting
  • Rates never increase, benefit never decreases

NODLB.COM Plan RATING

Burial Insurance For Your Elderly Parents

If you are considering purchasing burial insurance for your elderly parents or an extended family member, you have landed in a good place. This review will briefly address the product’s ratings and offerings, underwriting niches, pricing, and alternatives.

While the issue of burial insurance is always tough to talk about, most families must make plans to get burial insurance policies for their parents and loved ones. Funeral costs have risen significantly over the last few years, making funeral arrangements quite costly. Opting for a proper policy for your parents will ensure no financial surprises ensue on the day the unexpected happens. 

Although life expectancy rates have been headed north in the last few decades, eventually all families will have to make arrangements for their parents’ funeral arrangements. The faster families realize this and take necessary action, the lesser the chances of coming up short to cover funeral expenses.

The 1st step involves discussing burial insurance policies with parents or extended family members, thus ensuring everyone is on common ground. Most parents have no intention of being a trouble to their family when they pass away. Obtaining a decent burial insurance policy ensures that all funeral costs get covered automatically and ease everyone’s burden. 

What Amount of Funeral Coverage Is Recommended For Parents?

TV ads proclaim that a usual funeral held in the USA costs over $6000. However, it is worth noting that these numbers are quite dated now. Currently, a funeral held in the USA will cost around $9000 on average, with about $1000 in variable costs, dependent on services chosen and location, which may cost you more. 

Although the cost of living may differ widely across states, the costs of conducting a funeral and burial in the country are fairly similar. This is, in part the result of a limited number of major casket makers and the affiliated nature of funeral homes.  While there are thousands of independent funeral homes, pricing is influenced by the national providers.

How To Minimize Funeral Expenses For Parents?

There are a few steps that you may take for lowering funeral costs, like holding a graveside service only, for instance. However, you must consider the fact that the burial insurance payout for your parents’ funerals ought to be sufficient for covering the maximum costs that will be incurred for the funeral from all sides. Also, there are many expenses which most people traditionally think to be funeral expenses. However, several of these expenses don’t fall explicitly under the funeral expenses category. For instance a wake or viewing, the preparation of the body, the casket and headstone, obituary listing and hearse are all expenses that  may or may not be part of the funeral cost.

While you may be able to put liquid funds aside for this event, purchasing the right burial insurance policy for parents can be the easiest & least expensive move. A decent burial insurance policy should require reasonable monthly premiums, which can provide adequate funds for covering all the funeral expenses. 

As a general rule burial insurance payout should at least be around $7500, for adequately covering all expenses.

If you have already purchased a suitable plot or have assets in place for covering the expenses, this figure can go even lower. However, remember that funeral costs will only grow in the future and ensure that the coverage rises correspondingly.

Can I Purchase Burial Insurance Policies For My Parents or Extended Family Member?

Absolutely, you can purchase burial insurance policies for parents or extended family member. Most companies dealing in burial life insurance policies are ready and able to underwrite policies for the funeral expenses of loved ones. Multiple burial insurance types are available.

However, burial insurance is meant to simply cover funeral costs only. In contrast, life insurance policies are usually meant for parents to provide financial support for their children who are beneficiaries. Meant as a nest egg or financial buffer, these kinds of life insurance plans which parents may buy with their children acting as beneficiaries may have much bigger sums as payouts.

Things To Keep In Mind

Burial insurance policies whether bought for parents of adult children or by the parent themselves,  deal with clients in advanced age with limited income. As such, it is important that all parties understand the rights and responsibilities associated with the policy. Although burial insurance policies are usually straightforward, certain subtle points must be remembered while purchasing a policy.

Selecting The Correct Burial Insurance Policy For Parents:

Burial policies come in 3 flavors, term insurance that is priced by age in 5 year brackets (think AARP) ; level whole life policies that never go up in price and never decrease in value; and graded whole life policies that have a waiting period before the whole benefit is inforce. The difference between both the policies are significant and have to be considered while purchasing a suitable burial insurance policy.

Term Burial Insurance

This is a popular product due to low initial cost and extensive television, radio and print  advertising. These products are a little risky in that they do not go beyond age 85 and get increasingly expensive over time. The pricing is generally done in 5 year increments and the rate is fixed for that five years. This product may be tempting, but it is no replacement for actual burial insurance. 

Traditional Whole Life

With benefits rolling in from Day One, this plan provides you with 100% death benefits upon policy issuance. However, it has to be noted that traditional policies may not be approved by burial insurance companies in case of serious health issues. 

Graded Benefits Plan

Graded plans have a waiting period of 2-3 years before the full face amount is in force and payable. This 'grading" can be steep in which case the beneficiary will only receive the premiums paid and interest if the insured dies within the two year period. Alternatively, some graded plans will pay out a portion of the proceeds on an increasing schedule as seen below:

  • 1st Year: 30%
  • 2nd Year: 600%
  • 3rd Year: 100%

To avoid graded benefit policies, it is optimal that insurance is obtained while the parent(s)  is still in reasonably good health. If applying is delayed until health conditions have become serious, a policy with  graded benefits may be your only choice.

For providing a decent burial insurance policy for your elderly parents, this means you must start early and find an affordable option, which provides at least around $7500 in death benefits for covering all funeral costs. The best way to accomplish this objective is to engage the services of an independent agency like NODLB.com with access to multiple carriers and coverage options.

Families who are concerned about funeral costs for their parents will be better off the faster they deal with this issue. Children and parents can breathe easy, assured in the knowledge that funeral expenses won’t pose a financial problem.  

What Will Funeral Coverage for My Parents Cost?

The cost will of course, depend on the amount of coverage you choose and plan that your parent or extended family member qualifies for. below we have provided example rates from some of the best names in the market from Mutual of Omaha and Liberty Bankers Life to lesser known Prosperity Life Group. Note that all the carriers we offer require no medical exam and will do your application over the phone and put it in place that day.

Sample Rates

Funeral Coverage  for Parents over 65

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Funeral Coverage  for Parents over 70

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Funeral Coverage  for Parents over 75

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Funeral Coverage  for Parents over 80

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Thank you for choosing NODLB.com to research burial insurance policy details. Should you have any questions, please do not hesitate to call or send over an email. 

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