What is Arizona burial insurance? Well, firstly, let’s break some life insurance myths. Arizona burial insurance is the same thing as Final Expense insurance. It’s also referred to as Arizona Burial Insurance for Seniors. It’s referred to as a lot of things. Arizona Burial Insurance is a whole life insurance policy built for the needs of seniors with their particular budget and life insurance goals, in mind.
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What ISN’T Burial Insurance???
For starters, burial insurance should NEVER be Term life insurance. This is a common mistake that not only the layman makes, but also a mistake the inexperienced agents make. Burial insurance is also never an accidental only policy. Finally, it should never be mortgage protection. It’s very important to be aware of this. They each are technically very different life insurance policies.
Are All Whole Life Policies Created Equal?
While all burial insurance is a type of whole life, not every whole life policy is going to be a burial insurance policy. Some types of whole life insurance can be a universal, jumbo, young adult or even children’s whole life policy. Each of these options is its own unique butterfly. But the simple explanation is burial insurance is a whole life structured life insurance policy that is designed to pay a senior’s final expenses. This means things like traditional burials, cremations and funerals. Also, if you want to give a financial gift to a loved one, upon your passing, that’s commonly wrapped into burial insurance.
An uncomfortable part of this business is helping to lovingly educate our new clients about some of the shady things many life insurance agents are up to. Unfortunately, many agents out there use fear tactics to move you from a solid life insurance policy, into an inferior policy, so they can make a buck.
On countless occasions, our clients have told us stories about what agents have told them- as far as “problems” with their policies, or with their agent. This is typically 100% fiction and dishonest. One small example is when agents call Arizona seniors and tell them they need to immediately drop their whole life insurance policy. That instead they can get their burial insurance policy “before it’s too late!”. It’s disgusting, but some agents are putting clients into more expensive policies, or at the same price, but with a lower death benefit, so they can get a fatter paycheck. This is a great reason to latch onto a reputable agency and ask a lot of questions. Or, even better, do what you are doing now, and research this yourself.
What is the Difference Between Term and Burial Insurance?
Another common story we hear from our clients is about agents that offer term life insurance for them. They do not properly explain that term life insurance only locks the terms of the policy for the TERM. Then about 10 to 15 years later, those premiums will DRASTICALLY they increase in cost. It increases to the point where the price is no longer sustainable. Some agents are doing this because per $1000 insured, the term policy is always cheaper than whole life insurance. On the other hand, whole life NEVER expires. So, it’s not difficult to show a lower price and create the impression of a better deal.
It’s heartbreaking, to know this happening. Fortunately, it occurs less than half of the time. Taking advantage of others is simply not the way our parents taught us.
The take away from this is burial insurance should ALWAYS be a type of whole life insurance because you want a policy that’s not going to go away. It’s not going to expire. It’s not going to increase in cost. It’s not going to change on you.
Term Burial Insurance?
Here is another example of creating burial insurance in the form of a term policy. AARP has a low-cost term life insurance for seniors. They tend to specifically market to seniors, at a lower cost with a term option. AARP may market this as burial insurance.
If you are a senior and get one of these term products, you need to understand 2 very important things:
- These terms renew annually
- Coverage maxes out at age 80
Your health and age are locked and protected for only 1 year at a time. If you develop a medical condition your policy and rates are in jeopardy. As soon as you hit the renewal date, the underwriting life insurance company can simply decline your coverage. Now, you have a medical diagnosis and no life insurance. You will most likely be forced to get a guaranteed whole life insurance policy. This costs a lot more than normal burial insurance. Approval for these 1-year renewal terms is not guaranteed. However, if things DO go as planned and you do NOT develop medical problems, guaranteed policies still would decline in coverage. Even if you keep the coverage until you’re 80, your AARP coverage stops and you need to get a proper burial insurance policy at this time.
There’s a reason why terms for seniors are structured the way that they are. Simply, it’s much less risk and higher profit for the life insurance company. Often you outlive the term policy, which happens most of the time. At this juncture, you are forced to pay a lot more for a new whole life burial insurance, because you waited until you are in your 80’s. …I feel your frustration.
Term “burial insurance” commonly ends in 2 ways:
- You’re uninsurable, based on health.
- Burial insurance will now cost 3X what it would have cost 10-15 years ago, simply based on age.
Price is the most common reason why seniors coming off of their term policies, choose NOT to get proper burial insurance. It’s sad and it is avoidable. The seniors this happens to had received bad life insurance advice. Or, no advice at all. As is often seen in the case of mailed marketing purchases.
Burial insurance is incredibly valuable for the benefit of our loved ones. Our spouses, sons, daughters, sisters, brothers, friends, always appreciate the financial support that burial insurance provides. This is why we should all have life insurance. But, sometimes the policy is out of reach due to cost. If this is your situation, reach out to us and we will see what we can do for you. We will shop like crazy to find you the lowest price. That’s simply the process. If you are in your 80’s, you can still get life insurance until the end of age 85.
Our job, and we take it seriously, is to find you the lowest priced burial insurance, available to you, based on your health and age. Because we’re an independent Arizona brokerage, we are able to shop many life insurance options, to match you with the lowest rate, in a burial insurance policy that satisfies your needs, with a company that has a really high rating, so you are in good hands. More importantly, they’re going to take care of your beneficiaries.
If you have any questions or other life insurance needs, please reach out to us. We are happy to help.