The Do’s and Don’ts of Burial Insurance
What is burial insurance? Burial insurance is life insurance that is built from the floor up to take care of cremation costs, to take care of burial costs, to take care of the costs of funeral services and any costs associated with ones brutal or the burial of a loved one.
The first “do” when considering burial insurance is that you want a burial insurance structured as a whole life insurance policy.
Now there are people out there that firmly believe term life insurance is the only answer and best option but this is not so for burial insurance.
Term life insurance is not for burial insurance because term life insurance is most likely going to end before you die and you are left with no choice but to get another term policy that is going to be much more expensive.
There are life insurance agencies and agents out there that are going to tell you that you don’t worry about it because the coverage for burial expenses is going to go untill you’re 120.
That’s only partially true and if that’s all they told you, you should call that state insurance department and report them. They will lose their license. The reason why the policy does not go until you’re 120 is because the policy is locked in and protected for a certain term, 10, 15, 20, 25 or 30 years now for seniors.
Typically it’s 10 or 15 years. They only let it go so long. You’re only protected and locked in for price for that long. And once you get past that term length, then your price is going to skyrocket to where it’s not affordable for 99, over 99% of people. So it’s a terrible thing. When agencies or agents tell clients that, it’s almost criminal and it’s pretty heartbreaking.
Structured Whole Life insurance Best Bet For Burial Insurance
You want it your burial life insurance structured as whole life insurance. You want a policy that is never going to expire. It’s never going to change from what it is today. It’s going to be in effect when your beneficiaries need it to cover your burial costs. When you pass away, it’s not going to change.
Another “do” is you want to start a policy as young, as possible to save money.
As seniors get older and they haven’t gotten their policy yet, that’s when the price really goes up.
One one gets to the age of 70, the price for burial insurance is drastically higher than for someone who is aged 60, 65.
Once one get’s to the age of 80, that price really starts to get out of reach so you want to get your burial insurance policy when as young as possible.
Once one realizes how important it is to have burial insurance in place it is best to start shopping around to get the best price possible.
You want to lock that down so that you don’t need to worry about that price going up ever again.
A-Rated Life Insurance Companies
The next “do,” is you want to make sure it’s with an A-Rated life insurance company. There are burial insurance companies out there, life insurance companies that will be C-rated that will be B-rated.
You don’t want to deal with any of these because there is no guarantee they will be there to pay when it comes time for your family to collect.
You want an, A-rated company. This means they’re financially solvent. They’re around to stay. You know, they’re going to pay on their policies. A-rated life insurance companies are financially solvent. It is very important with life insurance companies to have the higher rating. It also usually. reflects how solid they are just in general as a company, as well as that their customer service strong. They offer a quality product.
Another “do” is you want to work with an agency that at least mainly if not entirely works with seniors. This is very important because if they’re working on mortgage protection policies for people that are under the age of 40 or 50, they’re not going to have the experience and the know-it-all to really dig in and answer your questions the way they should be answered for burial insurance and pair you with the best possible company and product. They’re not going to know those as well if they’re not working them, as much as they probably should be.
Higher Health Ratings Get Better Prices for Burial Insurance
Another “do” is to get standard or preferred classification on your health rating. If possible, if your health allows it, there are a lot of companies, and agencies out there that will immediately go to guaranteed issue life insurance because they don’t want to worry about declines. They don’t want to worry about anything.
With guaranteed issue policies, you end up paying more for less. It’s a terrible deal, actually. The reason why you would have to go with a guaranteed issue insurance is because the status of your health requires it. If you’ve got major health issues, current cancer, using a wheelchair, breathing oxygen, all of these things require guaranteed issue policies.
But if you don’t have those, there’s a good chance you can get, in a worst case scenario, is to get an A-graded life insurance policy, which is a significant improvement over guaranteed issue, or even better.
Much better is getting a standard life insurance policy. The best type of policies can be had if you have a preferred health rating, which gives you the lowest price, highest quality product, double indemnity, all these things that you want in your pocket so that your beneficiaries are covered and you’re paying as little as possible.
Working With Best Agencies
Now, the last thing is that you want to make sure that you work with an agency that’s established; that they’ve got a solid website and they’re easy to contact. Those are huge things that should just be requirements right off the top.
You want to make sure that the agency you work with is right there for you when you need them. That they answer your questions immediately and get right back to you when you call. So you want to do that now. Find a good agency right from the beginning and you will save money and get a better coverage.
Just remember you don’t want a guaranteed life insurance policy. unless you have no choice.
She saw a commercial on television and she called is for life insurance. And they instantly set her up with a guaranteed issue policy. They didn’t even ask her any health questions they just said, Oh, no worries. It’s guaranteed approval. So no questions asked and they put her into a policy with a company I love, by the way, it’s one of my favorite life insurance companies.
By looking around or having your agency do it for you you can save almost 50 percent on costs and get a much better coverage if you have a good agency working for you, like us, at Protect With Insurance.
It’s very important that you stick with the best possible option.
New Careful Replacing Your Current Life Insurance Policy
The last “don’t” is if you’re looking at replacing your current coverage, you have to be careful. Make sure that you do not drop your current coverage until two things happen with a new policy.
If you get something that’s either a significantly better priced with more coverage for the cost, whatever it may be don’t drop that policy until it has been approved. That’s the first thing. Thew new one has to approved. Secondly, not only do you want to make sure the new policy is approved, but charged to your account or bank. You want to make sure that that draft has come out of your account.
A lot of times these companies, especially now, they will give an instant upfront, automated approval, but then they still have to be processed by a person. And that person, if they see things that they have to question, and this happens. 10% of the time, 15% of the time and it’s enough to where you have to be careful where when they’re processing it, they may see some kind of a red flag that comes up.
It could happen for any reason. Usually it’s medical, something in the medical database. Then they could say, “You know what? Sorry, even though we pre-approve this, we can not approve it either.”
It’s a flat out decline or it’s going to be graded and it may end up being significantly worse or nothing at all compared to the policy you had before.
So make sure it’s approved as well and that they take their first payment. They won’t take that draft out and they hit a red flag.
The last thing is, do not get term life insurance for burial insurance. We can’t stress this enough. This might be the biggest tip we can give you
Term life insurance has its strengths. It’s a wonderful in general. It’s a wonderful type of life insurance, but for burial insurance, you want something you don’t have to get reinsured on. You want to get something you know, is going to be there. When you pass away, it’s there. You’re not going to have to work at getting reinsured at any point.
So that’s the last tip we have for you. We hope this has been extremely helpful to you. Please reach out to us any time you can either call us, or you can send us an email firstname.lastname@example.org.