What to Expect with Funeral Costs and How Purchasing Guaranteed Issue Whole Life Insurance Can Help
As parents get older, making the most of your time with them is what's important. Knowing that any end-of-life needs, like burial costs, are covered means you can focus on what matters: being there for your parents in the here and now.
Don't let funeral costs loom over you. You can get burial insurance for your parents through a life insurance policy like Guaranteed Issue Whole Life Insurance for seniors. If you've wondered how to buy burial insurance for parents, this article guides you through.
What Is the Benefit of Burial Insurance?
According to a 2019 report by the National Funeral Directors Association, the 2016 median cost of a funeral with burial and viewing was $7,360. 1 If a vault is included, the median cost was $8,508. These costs vary depending on the type of burial or funeral that is had, as well as other expenses like if a funeral home is used for viewing or if a burial plot is purchased.
These costs can become overwhelming for family members who have had to financially support aging parents in other ways, such as with medical services and end-of-life care.
Life insurance for seniors can help alleviate these costs. A life insurance plan provides for surviving family members and offers coverage for expenses like burial costs or outstanding debts. Getting a policy for a senior parent can help provide peace of mind for the future.
What Kind of Burial Insurance Is Available?
Guaranteed Issue Whole Life Insurance is a life insurance plan for those ages 50 to 85 that is guaranteed to be issued to the applicant, without any medical exam or health question requirements. This type of insurance policy, with up to $25,000 in coverage, is designed to cover expenses like funeral costs.
One benefit of Guaranteed Issue Whole Life Insurance is that you can purchase this type of life insurance policy on your parent's behalf. This helps alleviate any stress or financial burden from your parents, while providing you with the future assurance you'll be able to honor them with the burial service they and your family deserve.
How to Purchase Guaranteed Issue Whole Life Insurance for Parents
Before you look into life insurance for aging parents, you should consider the amount of coverage you think your family might need based on any debt or final expenses, such as unpaid medical bills. Applying for a maximum life insurance policy may be the best option, since unexpected costs can arise at any time. Know that while a cheap plan may provide short-term savings, a more comprehensive plan may be more beneficial in the future.
To purchase burial insurance for your parents, you'll need your parents' consent to buy a policy in their name. In most cases, this requires that they sign the insurance application. Again, with Guaranteed Issue Whole Life Insurance, no medical questions or exam is required.
You'll also need to demonstrate “insurable interest” when you're the applicant. This means you'd be financially impacted by the loss of the insured. In most cases, since you're a family member, you will have automatic insurable interest because it is reasonable that you'd be responsible for your parents' final expenses.
How to Approach Your Parents About Burial Insurance
Having a conversation about death can be challenging for many families. Approach your parent or parents from the perspective that securing burial insurance now ensures their last wishes are carried out. Since you're offering to help by purchasing the plan for them, you have their best interests at heart.
You typically can't purchase a life insurance plan for a parent without their consent. Prepare yourself to have the conversation. In many cases, parents will welcome discussing end-of-life plans with children, since these issues may be on their minds, as well.
Get Burial Insurance for Aging Parents to Help Alleviate Worry Now
Burial insurance can be an emotional topic for many families. But having the discussion now can help alleviate stress, worry and future financial burdens. By purchasing a Guaranteed Issue Whole Life Insurance policy for your parent, or parents, you can enjoy the time you have now with your loved ones.
Contact AIG Direct online or at 800-450-5457 for information on life insurance for parents.
This information is general in nature, may be subject to change, and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. For advice concerning your individual circumstances, consult an attorney, financial/tax advisor or accountant.