Seniors that are looking for insurance may be torn between funeral or burial insurance versus more traditional term or life insurance. It may help to know exactly what burial insurance is, and that it typically has a lower cash value than conventional life insurance policies. Burial insurance policies generally are worth less than 25k, and are intended to take care of final wishes and funeral costs at end of life. Term life insurance, on the other hand, may have a higher cash payout and could build capital so that policy-holders can borrow on it.
Some things to think about surrounding insurance are:
Costs. The costs of obtaining life insurance after age 70 could be quite high, depending on any existing conditions and overall health. Funeral insurance tends to be a bit cheaper, with premiums that most seniors find affordable. Talk with insurance agents about the premiums before agreeing to any specific policy, and compare rates among providers to find the best coverage for your distinct needs.
Coverage. To reiterate, funeral insurance is intended to cover final expenses, whereas life insurance is meant to leave something behind for loved ones, bills, and other costs. It may be more difficult for seniors to find carriers willing to insure older policy-holders for term and life coverage; burial insurance may be an easier acquisition that doesn't require a physical exam for acceptance.
Convenience. There is a level of convenience associated with burial insurance or coverage that doesn't require a physical exam. Many of these policies may be obtained without a face-to-face meeting, which could appeal to seniors. Life insurance may also fit these convenience criteria, depending on the face-value of the policy being sought.
Comfort. Whether you go with burial insurance, term life coverage, or both, there is a degree of comfort and peace-of-mind that comes with becoming insured. Give your loved ones this same comfort by making sure that you have enough coverage to take care of final expenses, bills, or other costs that you don't want to fall on your survivors' shoulders.
Cohesion. You may find the best solution to your insurance question is to combine the two, and carry both a burial insurance policy and term life insurance coverage. The two will complement each other, and you will find that a funeral or burial policy augments any existing life insurance policies that you currently have. This ensures a bit more resources left behind for final expenses, and less duress on loved ones after you are gone.
Are you insured? Even if the answer is 'yes', you may find that augmenting existing coverage makes good sense. Be sure that you are leaving enough behind to cover your final expenses and bills, while possibly leaving a little something behind for those you care about. For more information, contact Alliance Insurance Brokerage or a similar company.