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Most people want to make sure they have some type of insurance coverage in place to cover their final expenses when they pass away. People who care, don’t want to leave behind unpaid bills or debts that create an unwanted burden for their loved ones. These final expenses can consist of burial expenses, funeral expenses, the cost of a headstone as well as medical bills, debt and even credit card bills.
According to Funeral-Tips.com, the average cost of a funeral with burial is about $7,200.00. The average cost of cremation which is growing in popularity is about $6,100.00 To cover these expenses, there are various types of burial insurance policies available.
Burial Insurance Over Age 50 – Your Options
Burial Insurance or Final expense policies are typically issued in policy amounts between $10,000 to $50,000. Some require a few medical questions to answered for approval and some policies have no medical questions or no medical exam.
The most common types of policies are Guaranteed Acceptance Life, Simplified Issue Life and Whole Life Insurance. Term life insurance is not an option for this type of coverage because eventually the term ends. If you outlive the term, there is no coverage.
Guaranteed Acceptance Life insurance
Guaranteed Acceptance Life also known as Guaranteed Issued Life is the easiest type of life insurance to qualify for because there is no medical exam. There are no health questions to answer or background medical checks. The only way to get rejected for this type of policy is if someone is confined to a nursing home or assisted living facility.
“Term life insurance is not an option for this type of coverage
because eventually the term ends.”
Many companies market Guaranteed Acceptance policies as peace of mind final expense insurance for people over age 50 to age 80. They don’t tell consumers who are in good to fair health that they have other options and they don’t have to pay top dollar for an inferior product. The sales pitch by the famous celebrity makes these policies sound very attractive to elderly consumers by telling them there is no medical exam, no medical questions and coverage starts on “day one.”
The truth is, all Guaranteed Acceptance Life policies have some type of limited benefits during the first 2 years and offer no more than $25,000 to $35,000 of coverage. These are often called Graded Death Benefit policies.
Graded Death Benefit Policies.
With a graded benefit policy, there is no death benefit paid to the beneficiary in the first 2 years. If the insured dies within the first 2 years, the death benefit payment consists of the amount of premiums paid plus an interest rate. Usually between 8 to 10%.
These policies also cost more because there is no medical information provided. If you can afford to pay for the policy, the insurance company will issue it to you. A graded benefit or guaranteed benefit policy is appropriate for someone with a serious health issue that would otherwise not qualify for any type of coverage.
But if you are not on your death bed and want to save some money on your policy, it would be better to apply for a simplified issue policy.
Simplified Issue Life Insurance
A Simplified Issue policy will require you to answer some medical questions but will not require a medical exam. This type of policy will also allow you to purchase more death benefit amounts between $50,000 to $100,000. Maximum amount of coverage will vary by insurer, but will not be as much coverage as a whole life or term insurance policy.
For instance, Simplified issue policies from MetLife range from $5,000 to $100,000 in coverage and Prudential will offer up to $110,000 for simplified issue. Other insurers that offer these polices are New York Life, Amica and Transamerica.
Whole Life Insurance
If you need more than $100,000 of coverage and don’t mind taking a medical exam, you could buy a whole life insurance policy. Whole life is a policy that you cannot outlive and will stay in force as long as you pay your premiums.However, whole life over age 50 could be expensive for some people so another option would be Guaranteed Universal Life (GUL).
Guaranteed Universal Life (GUL)
Probably the best life insurance over age 50 if you can qualify, is Guaranteed Universal Life. These policies are less expensive than whole life and are offered at $50,000 to $1,000,000 of coverage or more. GUL policies give the option to guarantee your policy for your lifetime no matter if you live over age 100. Some plans are guaranteed until the age of 90, 95 or even 121. Whole life and Guaranteed Universal Life pay out immediately upon death and do not have a 2 year waiting period like Guaranteed Issue policies.
Burial Insurance Over Age 50 with Health Problems
Up until the age of 80, every type of policy option is available, especially if you are in good health. If you have pre-existing health conditions such as high blood pressure, high cholesterol, and even type 2 diabetes that is controlled with medication you can still qualify for burial insurance over age 50. Health problems, can usually qualify for standard rates.
If you have serious health problems such as heart disease, cancer, or a history of stroke, you would want to consider a guaranteed issue life insurance policy where no medical exam is required.
Insurance companies will not offer any type of policy to anyone over the age of 85. With life expectancy for males to age 76.5 and females to age 82, insurance companies will not take this risk.
Burial Insurance Over Age 50 – Get Started Today
The first step when shopping for burial insurance over age 50 is to work with an independent agency that can shop several company options on your behalf. Our agency works with more than 30 insurance companies so we are not required to push you to any particular company. Rates can vary from each insurance company so it is in your best interests to shop around. Get a free no obligation quote today by contacting us and compare multiple quotes for burial insurance over age 50.
