Burial insurance is a way to provide your loved ones with the money they need to cover your final expenses, specifically those related to your burial.
The average funeral costs $9,000 and this is just for a middle of the road service. More complex services or larger headstones with a nice casket might cost much more. At 75, there is very little room left for finding affordable policies since most companies cut off their term and permanent policies at 75 or 80. That said, burial insurance is still a great option.
What is Burial Insurance?
Burial insurance is a more affordable form of coverage that usually caps out around $25,000 and is meant specifically to cover burial costs.
Why Do I Need Burial Insurance at Age 75?
At this age there are many reasons why you might need or want burial insurance. You might, for example, have had a term policy in the past which just recently expired, but now you no longer have to provide replacement income for a spouse or children.
Now you just need to pay for the limited coverage you need, which is the burial costs. You might, instead, have never taken out a policy and now you realize that you do not want to leave your family with the financial burden of paying for a $10,000 funeral service. You might have health conditions that prevent you from obtaining any other coverage, or you might find that other policies are just too expensive.
Life insurance is designed to fulfill a handful of needs, including covering finite expenses like years left on a mortgage or protecting the interests of your dependent, special needs child in the event that you pass away. Over 70% of Americans consider life insurance to be important, yet 41% do not have it.
Who Needs Life Insurance at Age 75?
|Who||How Life Insurance Helps||Best Option|
|Breadwinner||Life insurance can replace income from the breadwinner so that the family can continue to cover every day expenses.||Term life insurance is best for situations where you need to cover the years you would otherwise be working.|
|Stay-at-home parent||Life insurance would cover the cost of services that a stay at home parent does for free, like child.||For this, term life policies are better because they can be set to cover the years your child is still young and would need such services.|
|Divorced parent||A policy would cover the remainder of support payments that are made to an ex-spouse or child.||Term life policies are best because they provide the payout for the number of years that are left in support payments.|
|Parent of special needs children||Life insurance can provide financial support for a special needs child when their parent dies.||Permanent life insurance policies are best, as these will give the payout regardless of when the parent passes away.|
|Homeowners with a mortgage||Life insurance covers the mortgage payments so that family left behind does not have to move when you pass away.||Term policies are better because they can match the years left on the mortgage|
|Someone with co-signed debt like credit cards or student loans||Life insurance covers the remainder of the debt.||Term life policies can be matched to the end of the debt payments.|
|High net worth people||Life insurance gives money to pay for inheritance taxes or estate taxes||Permanent plans are best for estate tax concerns.|
|People who want to give an inheritance||If you do not have a lot of money to give, but you still want to leave something behind, this can be a small inheritance.||Permanent plans are going to pay out no matter when you pass away, and guarantee that inheritance.|
|Business owners||Life insurance can be used to pay off any business loans still outstanding and offer partners a buy/sell agreement in the event that they want to buy out your shares of the company.||Term or permanent policies can be useful depending on what you want to achieve.|
|Investors||Life insurance gives cash value that can be used to supplement retirement savings.||Permanent policies are best because they build cash value at varying rates.|
|People who need to pay for their funeral.||Smaller burial insurance policies can provide smaller amounts of coverage to pay for burials.||Final expense or burial plans are best suited to this.|
Burial Insurance Rates for 75 Year Olds
The rates you are given are based primarily on your life expectancy, so that means the companies have to look at your age, your gender, your health, and whether or not you smoke. The earlier you buy, the easier it will be on your pocketbook.
The average life expectancy for women is 82 while for men it is 76. That said, women will pay less than men of the same age because their life expectancy is longer. Even though the coverage is smaller, the price for premiums is still impacted by your health and your tobacco use.
Sample Rates for a 75 Year Old in good health who is a non-smoker:
|Face Amount||Male Non-Tobacco||Male Tobacco||Female Non-Tobacco||Female Tobacco|
Guaranteed Issue Life Insurance
Now, given that health can play such a big role, there might be cases where you who want coverage 75 but the rates being quoted to you are just too high. Or, you might have a health problem that qualifies you for an “automatic denial” of coverage. In these cases, there are still options left.
Guaranteed issue coverage is a form of coverage guaranteed for everyone. As the name suggests, it is guaranteed. It is a whole life insurance policy which means it is there for the rest of your life. Most policies can be taken out in amounts between $2,000 and $25,000.
Guaranteed Issue Life Insurance Rates for 75 Year Olds
The premiums are level, so they never go up in cost and you can budget accordingly. Most importantly, there are no medical exams. You just fill out what is usually a one or two-page application and get immediate coverage.
Below are the sample costs for a 75 year old with a guaranteed issue policy:
Permanent vs. Term vs. Burial Insurance
Permanent Life Insurance
Permanent policies are designed to:
Term Life Insurance
Term policies are designed to:
Burial policies are designed to:
How Much Burial Insurance Do I Need?
If you are able to afford it, choosing more coverage than you anticipate needing is always better than less. For those who are 75, issues, like paying for a mortgage or paying for children, are not typically things to worry about.
No longer are there outstanding mortgages, but there might be a need to cover the remaining costs of a funeral or burial. For this reason, seniors who are 75 benefit from burial insurance the most.
The amount that you need, therefore, is based on the funeral or burial that you want. You can work with third-party funeral planning services, often for free, to figure out how much it would cost you based on where you live.
You can even plan out the services you want, write down your wishes, and have them set aside so that they are legally binding and provided to your family at the time of your passing.
This makes the planning much simpler. You will likely need around $10,000 in coverage, but if you want a more complex service or a higher end casket, you should take out a policy for a higher face amount.
Is Burial Insurance Coverage Enough?
If you realize that burial insurance is all the coverage you need, rest assured that you can find policies under $25,000 that are more than adequate for your funeral costs.
Below is a breakdown of the average funeral, which gives you some idea of how much you are going to want to set aside:
How to Find the Best Burial Insurance Coverage for 75 Year Olds
When you set out to find good coverage, we recommend working with an independent life insurance agent so that you can compare the best burial insurance rates being offered for your age and your health.
This will help you to find an array of options and decide which ones are most favorable to your situation. It will also help you to understand the types of policies available to you, and which one is best for your family.
Give our agents a call today to speak with an expert and find the best burial insurance rates for 75 year olds. Or, get started online with our online quoting engine for quick and easy burial insurance rates instantly.