What is burial insurance for seniors?

So what is burial insurance for seniors? I’m Chad McMahon with protect with insurance. This is another life insurance episode. So burial insurance for seniors. It’s very, very simple. You know, a lot of times they’re marketing and gimmicks that are used to try and separate this from other policies like other whole life insurance policies, things like that.

Burial insurance is very simply a hole. You need it to be whole and not term. Whole life insurance policy that would be ideally suited for a senior, which just means a whole life insurance policy that is going to be for someone that’s 50, 55 plus. And a lot of times you can,  you can start a policy as late as about 89 years of age.

so these are going to be policies that are permanent whole life. They’re going to be policies that you never need to worry about. The policy expiring. It’s going to be life insurance. It’s going to take care of the, the needs.  you know, your desires as far as if you want to be cremated, or if you want to be buried.

 

typically cremation style policies are going to start at about $5,000 just because you want a buffer there because costs go up. They don’t go down. So hopefully you’re not going to be passing away anytime soon. You don’t know, but you want to plan for if you live another, depending upon your age, another 10, 20, 30, even 40 years, depending upon your current age and your current health.

So you want a policy. That’s going to be sufficient down the road because the best price is going to be. Now, if you get some coverage now, and then you wait another 20 years and then you add more coverage, which is going to cost a lot more than it does today. And it commonly, it can be three, four, five times the cost, what it is to set it up today.

And the other benefit of setting it up the way you want it today is it’ll start building up cash value. And if you wait until later, then they’re really, you won’t get that benefit out of it. So that being said whole life very, very important, because you don’t want your burial insurance to be expiring on you.

You don’t want it to run out and then be faced with a situation where you have to get reinsured. And now it’s just going to be too costly and you can’t get it down the road because it’s either out of your budget or maybe your health has declined you no longer. Qualify for it, things like that. Now, if you’re looking for a sufficient policy to cover the cost of a burial, then you’re probably going to want to get at least 20,000 in coverage.

A lot of times our clients are going to get 25, 30,000, possibly as much as 40,000 in coverage, depending upon again,  age and health. So $20,000 is kind of the starting point to cover those burial. Expenses now the benefit of getting a policy like this is,  again, let’s say you’re looking at cremation and your beneficiaries or your kids, or your grandkids, or maybe spouse or something like that.

And you want to make sure that two things are accomplished. One that it covers the cremation costs, but two is that what’s left over, is going to help them. With miscellaneous bills costs, things like that. All of these proceeds are tax-free. So when you pass away, let’s say again, it’s cremation and you’re looking at a $15,000 policy.

Well, that’s easily going to cover cremation. That’s easily going to cover any reasonable,  service, funeral service, and there’s going to be money left over. And all of that is tax-free. So there’s not going to be any tax.  issue down the road. There are whole life insurance policies out there that do have taxation that you are texts.

but 99% of what we write for our clients is tax-free,  it’s only by special request only to look at other things such as universal whole life and policies like that, even annuities.  but that’s very little of what we do most weight and do are properly structured for a burial insurance policies.

For seniors to take care of those seniors. So I hope this has been helpful. Please reach out to us. You can email us. You can call us if you want to email us. hello@protectwithinsurance.com. If you want to call us (928) 323-0933. If you’d like us to put together other videos to answer your questions, or just give us a ring or email us, we’re happy to help you.

All right. Stay safe out there.

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Chad McMahan

Chad McMahan

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