Life insurance is important even at age 66. Most people who have never had coverage, or who had it early on but then it expired, might think that it is no longer a necessity because they no longer have children living at home or a business partner to protect. However, this is not the case.
If your loved ones depend on you for financial support, life insurance is obviously a necessity. For older individuals who don’t necessarily have children or grandchildren dependent upon them, life insurance is still something useful as it can be used to pay off the funeral and burial costs which can easily amount to tens of thousands of dollars. You certainly do not want to leave your spouse, your parents, or your children with any financial burden.
Burial vs. Term vs. Permanent
When you set about getting life insurance at this age, there are still three different options at your disposal:
Permanent life insurance is a permanent plan that will cost you more than any other plan but is there to give you coverage for all of your needs. It is also something you can use in the present as a financial tool.
Term life insurance coverage only covers you for a specific term, often something used by people who want to have financial protection for a set number of years because their financial obligations are for a set number of years.
Burial insurance is there to cover just the costs of the burial or funeral service. This is a much smaller amount of coverage because it is only enough for this cost, nothing else. This is great for those who do not have any other financial needs, have no dependents, might not be able to afford much more, or simply do not want to pay high premiums.
Why You Need Burial Insurance
Burial insurance is there to make sure your loved ones are not overwhelmed with financial debt at the time of your passing. No one wants to think about their funeral or death, but doing so bravely, while you are still alive can help alleviate a large problem for your family in the future.
When a loved one dies, someone has to take care of the arrangements, and they must do so quickly. This means that if there is no available life insurance, families might put the cost on a credit card and even if they do a simple version, it will still cost thousands. Not everyone has this. It can cause great strain among family members and create tension for years to come. You can avoid all of this with simple, affordable burial insurance.
How Much Does Burial Insurance Cost
So what does burial insurance cost? Well, that depends on how much coverage you want, and what your tobacco/health is. Below are some sample rates:
|Face Amount||Male Non-Tobacco||Male Tobacco||Female Non-Tobacco||Female Tobacco|
Like any other company, the premiums you are charged are based 1) on your age and 2) on your health/overall risk to the company. Tobacco users and those with pre-existing conditions may not qualify for more stringent underwriting from certain companies, or the premiums might be outlandishly high. In these cases, there are guaranteed issue policies.
Guaranteed Issue Life Insurance Policies
A guaranteed-issue policy is one which, as the name suggests, means you are guaranteed to receive a policy. In most cases, the application is incredibly simple, just one page in length. Not only are you guaranteed approval but you will have no health questions to answer and no medical exam to undertake.
These are typically issued for anyone between the ages of 50 and 85, though each company very slightly in either direction. The cost is slightly higher for premiums compared to other policies, but in exchange, you are guaranteed approval and you do not have to disclose any medical information.
Guaranteed Issue Life Insurance Rates
Below are the sample prices for a guaranteed issue policy:
Is Burial Insurance or Guaranteed Burial Best for Me?
There are many cases where certain health concerns might disqualify you from whole burial life insurance or level burial insurance. Each life insurance company is different about their underwriting and by extension, which health concerns might land you in a more expensive class or deny your application altogether. That said, guaranteed issue is always going to be the more expensive option comparatively.
It is reserved, however, for the many people who at 66 might need coverage and with it, peace of mind, but are denied because they have been treated for high cholesterol over the last three years, beat cancer two years ago, have diabetes presently, or have a genetic disease. In such cases where you have no other options, guaranteed burial insurance is a great plan, affordable, and as long as you pay your premiums, it will always be there.
How Much Coverage Do 66 Year Olds Need?
At 66 you have a few key decisions to make about your final services in order to determine how much coverage you need.
If you choose to get coverage of approximately $5,000, you might be able to afford a low-end cremation service. Moving upward, coverage of $10,000 will cover a basic funeral service.
Increments of $15,000 might cover more expensive services with extra components like religious leaders and a larger service, bigger flowers and a nicer headstone. More than that will certainly cover better caskets, those not made out of wood but perhaps out of metal with a great deal of flourish.
You will want to calculate the cost of a funeral or service before you settle on the amount of coverage you want. Funeral providers can often supply an itemized statement of the total cost of services or a “good faith estimate” that they have done for other, similar services.
If, for example, you are planning a viewing, the funeral homes you are considering might require embalming. This is not legally required if you bury the body or cremate it shortly after death, and if you choose not to do it, it can save you hundreds of dollars. However, again, there are some funeral homes which will not conduct other services without this.
Caskets range in cost between $2,000 and over $10,000. You have such a range because of the material out of which they are created. Woods or plastic is cheaper while copper and bronze are more expensive.
If you look at high-end offers, then make your way down to low end offers, you can get a feel for what you want, and therefore, what amount of coverage you need to factor into your burial insurance. For cremation, you have to decide whether there will be a viewing beforehand and you will still need to factor in the cost of a box or container.
Burial vaults or grave liners are used for full-service funerals. These are not a legal requirement when burying loved ones, but most funerals require it because it prevents the grave from sinking.
You might be able to save money by buying from a third party dealer, rather than the funeral home directly. This is the case with most things related to funerals. As such, doing your homework ahead of time can help you to determine what your needs/wants are, where you want to buy, and how much money you need as a result.
You can choose between a simple disposition or a traditional full-service burial.
Then you have to consider the costs of forwarding or receiving the body from elsewhere, a grave or crypt, and the headstone or marker.
Tips for Getting Life Insurance
If you have set out to get good coverage, you want to compare companies. You want to see what types of burial policies they offer, what riders—if any—they have, what their premiums are, and what their health requirements are.
Some companies do not charge a different price for tobacco versus non-tobacco users, like AARP. Others might offer better rates for healthier, younger individuals.
Age plays an important role too, so you will want to start looking as soon as possible. Many companies have an age cut off at which point they no longer offer coverage, so the further from that cut off you are figuratively, the better the rates will be.
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|
|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 some of the top companies for coverage and obviously picking from them or any other company is contingent upon your needs.
For example: if you want a guaranteed approval policy, then Gerber, AARP, or United Home Life might be your best option.
If instead, you want over $25,000 in coverage for a higher end casket and service, then you will want to look at companies like American Continental, Assurity, or Transamerica.
If you want to plan things now, with professional help, and you know your family will need counseling or other professional help at the time of your passing, Lincoln Heritage offers a unique family planning burial insurance that you might look into.
So, as you can see, each company has something different, a niche. Do your homework and compare them.
Finding the Best Burial Insurance Rates
When searching for life insurance rates, it is easy to get overwhelmed. With so many providers and various policies out there, it can be difficult to be sure whether or not a policy is best for you.
For this reason, we always recommend working with an independent life insurance agent, who can help you compare the best burial insurance rates from some of the best burial insurance companies on the market.
Give our agents a call today and begin comparing burial insurance policies, or get started online with our online quoting engine for quick and easy burial insurance quotes.