Burial Insurance For 65 Years Olds
last updated on October 9, 2018Even if you do not have dependents any longer and you do not have outstanding debt, your funeral will be expensive, and you certainly do not want to leave your parents, your children, or your spouse with any extra financial burden while they are suffering.
We all know that at some point we will pass away and whether it happens tomorrow or 50 years from now, it will happen.
There is no amount of money that can replace a loved one, but life insurance can provide protection against the uncertainties in life, giving you and your family peace of mind knowing that no one will be left with an unnecessary financial burden.
Types of Life Insurance for 65 Year Olds
There are three types of life insurance policies you can get at this age:
- Permanent Life Insurance
- Term Life Insurance
- Burial Insurance
Each policy serves a purpose.
What is the difference between each type of coverage?
Permanent Life Insurance
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Term Life Insurance
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Burial Insurance
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Why 65 Year Olds Need Burial Insurance
At this age, burial insurance is a good idea if you do not have some form of financial coverage in place for your final burial costs. This can give you peace of mind knowing that your loved ones will not be left with the burden.
The longer you wait to get coverage, the more it might cost.
Health is a major factor, as health changes can happen immediately. If you put off getting coverage because life just gets in the way, or you think it is too soon, you might find that a sudden change in health has increased the premiums. Moreover, the older you are, the more it is going to cost.
How Much Does a Funeral Cost?
The average funeral in America costs between $8,000 and $10,000 for a lower end service with middle of the road accessories, like the middle of the road caskets and headstones.
You can find out ahead of time what your funeral might look like by speaking with funeral homes now and assessing the prices for the things you want in the present.
In fact, doing so can help you explore all of your options and find the best places to buy different items you might need. There are even funeral planners that make all of this easy and let you legally write down what it is you want with your burial insurance death benefit.
There is such a thing as the funeral rule which includes all of the elements common to a funeral, regardless of the specific arrangement.
This includes funeral planning, permits, death certificates, any other notices, sheltering the remains, and coordinating arrangements with a cemetery or crematorium. Beyond this, you have to pay an additional fee.
There are charges for other services and merchandise including transporting your remains, preparing the body, using the funeral home for a memorial service, using equipment and staff to bury the body, the casket, the outer burial container, or the cremation.
Cash advances are fees that funeral homes charge to buy things from outside vendors on your behalf which includes officiating clergy, flowers, obituary notices, and organists.
The funeral providers will charge you what it costs them to buy those services for you and then add a service fee for their time.
The aforementioned Funeral Rule dictates that they specify what things you are going to pay for and what fees there are.
Burial Insurance Rates for 65 Year Olds
The prices you pay here are going to differ from one company to the next, but the average cost for different burial insurance policies for 65 year old smokers, and non-smokers are listed below:
| Face Amount | Male Non-Tobacco | Male Tobacco | Female Non-Tobacco | Female Tobacco |
|---|---|---|---|---|
| $5,000 | $29 | $43 | $22 | $32 |
| $10,000 | $55 | $82 | $42 | $62 |
| $15,000 | $82 | $122 | $62 | $93 |
| $25,000 | $118 | $173 | $92 | $123 |
You will see here that the rates are different for those who are smokers versus non-smokers because, the same as other policies, the amount that you pay for the premium is directly related to the level of risk you pose to the companies.
The higher the risk, the higher your premiums are going to be. In some cases, the premiums that you are being charged might be too high as a result of tobacco use or other health concerns. You might even be denied coverage as a result of this.
Some companies, like State Farm, have more severe underwriting policies and will deny coverage to those who have preexisting conditions or who have been treated for conditions within the last 12 months.
In these instances, all is not lost. There are options that will not deny your application, regardless of your health. These are called guaranteed issue.
Guaranteed Issue Life Insurance Rates
Guaranteed issue policies are those which are simplified. They often have a single page application and are not going to ask any medical questions or require a medical exam. They take on higher risk situations in exchange for a higher premium.
Still, for those who cannot afford any other policies, for those who do not qualify for other policies, or for those who simply want limited coverage, they are a great option.
Different companies offer different benefits and features built into the guaranteed policies automatically. AIG, for example, has a chronic illness benefit and a terminal illness benefit both of which means if you are diagnosed with a chronic/terminal illness and have been given less than 1 year to live, you can take out your death benefit and use it to cover any unexpected costs in the present.
In most cases, guaranteed coverage provides you with an average of $10,000. However, there are companies that go up to $25,000.
Below are the sample rates for guaranteed coverage for 65 year old males and females.
| Face Amount | Male | Female |
|---|---|---|
| $5,000 | $35 | $25 |
| $10,000 | $70 | $51 |
| $15,000 | $106 | $77 |
| $25,000 | $177 | $129 |
Burial Insurance vs. Guaranteed Issue Burial Insurance
Most people are aware that having something like high cholesterol or being a smoker can increase the premiums you pay.
Even for a burial insurance policy, certain health components might land you in a lower class. Insurance companies divide the classes by preferred plus, preferred, standard, and substandard.
But within these there are sublevels. Different companies divide different ways, some relying upon alphabetical division and others relying upon a numeric division. In any case, if you have a health condition or you are a tobacco user such that you get put into a standard class, your regular rate might be $40 per month for burial insurance.
But, you might be put into a standard class, sublevel B. Each sub-level represents a 25% increase in your regular class premium. So, if your regular class premium for this burial insurance is $40 per month, and you are two sublevels within that class, that is 50% extra. So, you have to add $20 per month to the pre-existing $40 per month policy premium. In total, you will be paying $60 per month.
Now, each company is different. While the burial insurance policies that they offer might be similar in terms of features and face amounts, the underwriting for each company is different. Some companies are more stringent than others and they have automatic denial policies.
This means that if you answer yes to any of the health questions they list on their application, you are automatically denied standard burial coverage.
For people with pre-existing health conditions, people who have battled with diabetes, people who have genetic health concerns, this means that there is no affordable option for them other than guaranteed issue.
With guaranteed issue, the rates might be a bit higher, but it is certainly better than not having any options at your disposal.
Tips for Getting the Best Burial Insurance Rates for 65 Year Olds
When you set out to get burial insurance, you want to consider your price.
First, consider the cost of the funeral or burial service you want.
Second, consider your health and age, and how that influences your premiums.
Third, consider your budget now, and in the future, if you are on a fixed income and see what things you can do to get cheaper premiums.
Maybe you get a bit healthier for the next few months to fall into a better category of coverage. Maybe you get coverage right now before you age any more. Maybe you reduce the service you want so the coverage you need is less.
Best Burial Insurance Companies
| Company Name | Issue Ages | Death Benefit Type | Coverage Amount |
|---|---|---|---|
| Americo | 50-85 | Level and Graded | $2,000-$30,000 |
| American National | 50-85 | Level, Modified, and Graded | $2,000-$50,000 |
| American Continental | 65-89 | Level, Modified, and Graded | $3,000-$35,000 |
| Assurity | 40-80 | Level, Modified, and Graded | $5,000-$50,000 |
| Gerber | 50-80 | Guaranteed Acceptance | $5,000-$25,000 |
| Mutual of Omaha | 45-85 | Level, Modified, and Graded | $2,000-$40,000 |
| Transamerica | Up to 85 | Level | $1,000-$50,000 |
| United Home Life | Up to 80 | Level, Graded, and Guaranteed Approval | $5,000-$100,000 |
These are companies that offer great coverage, but this is certainly not a comprehensive list. There are dozens of others that serve niche markets and deserve your consideration.
Work with a third party broker to explore the options you have, compare the companies out there, and see which riders work best for your situation.
How to Find the Best Burial Insurance Coverage for 65 Year Olds
Finding the best burial insurance coverage for 65 year olds comes down to being able to compare multiple options from multiple providers at once.
While online tools have made this easier in recent years, we still recommend speaking with an independent life insurance agent who can understand your individual situation in order to find the best burial insurance coverage for you and your family.
Give our agents a call today, or begin comparing burial insurance rates from the best burial insurance companies online with our quoting engine.
