2020 Best Type insurance For Seniors
We are confronted even in death with a myriad of confusing choices. This guide to the 2020 Best Type of Burial Insurance for Seniors is here to help you sort out some of this confusion. This guide will especially assist seniors in planning their final expenses. It is important to distinguish the difference between Pre-Need Insurance and Traditional Burial Insurance for Seniors.
Pre-Need Insurance vs Traditional Burial Insurance for Seniors
First of all, pre-need insurance is when you hire a funeral parlor and you pre-pay for your final expenses.
A pre-need plan is purchased directly from a local funeral home of your choice. You choose the funeral home you want to work with and specify the arrangements you desire. The funeral home will give you a cost that you pay in advance in full or via a payment plan.
After you sign up with them, they most likely will contact an insurance broker agency and take out burial insurance in your name. These policies can be anywhere from $10,000 to $50,000. They incorporate that in your cost, which you pay to the funeral home. They name themselves as the beneficiary. So, essentially you have needlessly hired a middleman, who benefits from an insurance policy they took out in your name. So it’s a lot wiser to go directly to an insurance agent like Protect With Insurance in the first place.
Here a little insider information on pre-need plans. Oftentimes, the funeral homes use an insurance company to cover the final expenses of your pre-need plan.
A traditional burial insurance policy is actually a whole life insurance policy that is restructured. This type of insurance plan is going to take care of the cremation, burial, funeral expenses, and any unpaid medical bills. Most importantly, traditional burial insurance will take a big burden off the shoulders of your loved ones.
Pitfalls of Pre-Paid Life insurance Policies
When you go directly to the insurance agency, you’ll get an authentic life insurance policy that you own. Instead of a pre-paid, third party plan where they name themselves as the beneficiary. With the traditional burial policy, all the money goes to your beneficiaries. On top of that, it is more cost-effective to do it that way. So those are the two differences.
Burial insurance for seniors is always going to be a whole life policy. Beware if you have an agent that tells you that you qualify for a term policy. Don’t do it. There’s a reason why burial policies are structured the way that they are.
Insurance companies have structured burial policies for seniors based on statistics and mathematics. On the other hand, most people outlive the term which usually ends anywhere from 10-15 years. When the term policy hits the end, your prices are going to skyrocket.
A lot of the time your premiums are going to go up 10 times and sometimes even 20 times! And that’s just in the first year or two. After that, it’s going to continue to increase in price. So it’s not sustainable. The smart thing to do is get a whole life structured burial insurance policy.
Choosing a Good Agent
You can search for burial insurance agents online or call us. We’ll be happy to offer you some great options, especially burial insurance options. Shop the heck out of it. You want to look at at least ten companies. A good independent agency like Protect With Insurance will do that for you. We are completely transparent with you. We will show you all the various companies and their options and pricing,
So that’s how you get the best price on burial insurance. I hope that gives you a better understanding of what’s happening in 2020 with burial insurance for seniors. A pre-need policy is better than nothing. However, there are much better ways to take care of things. If you want to avoid needless middleman expenses, visit us online or call. We can offer you the most beneficial burial policies that are not only cost-effective but will benefit your loved ones in their most vulnerable hours.