Burial Insurance

The time will come when we will no longer be able to provide for our loved ones. We will pass away and they will have to pick up the pieces during mourning. Burial Insurance is an insurance policy which provides a lump sum to cover our final expenses. Presently, burials can cost up to $20,000.00 and burial insurance policies are used alleviate this financial burden. These policies are intended to cover the costs of cemetery plots, headstones, caskets and any other miscellaneous expenses associated with the burial. 

Burial insurance policies are often very simple and easy to understand. As these policies provide just enough to offset the funeral expenses, premiums are often extremely affordable and as cash value policies, the premiums never change. Your burial insurance policy will, at the very least, cover you until you are 100 years of age. Another great advantage of burial insurance is that in most cases you do not have to undergo any medical examinations to be eligible, you can simply swear that you are in good health and not in a nursing home.

Some policies also allow you to link your insurance with a particular funeral home. This is an option that most burial insurance companies are now offering, but you will want to ask if this is something that is important to you. This means that you will be able to make arrangements with the home so that your burial can meet your taste as well as to ensure that your family’s time of grieving is as stress-free as possible. It is also an opportunity to manage the costs of your burial more closely.

Choosing an insurance policy always depends on your personal situation. Not all forms of insurance may be right for you. Burial insurance is ideal for the person who is concerned about their family incurring debt to make provisions for their passing. If you find life insurance policies are too expensive or you do not require a very large death benefit, burial insurance may also be an option to consider. Considering that burial insurance does not require a medical insurance it is also ideal for people looking for insurance but are not in prime physical condition and as a result the premiums for other insurance options are exorbitant. Likewise, if you have found that your age has forced insurance premiums above what you find affordable you may also turn to burial insurance.

The state of the economy and rate of inflation dictates that costs associated with burials will continue to rise. Burial insurance provides you and your family with peace of mind knowing that these expenses will not endanger their financial stability.  The economical premiums are a worthwhile investment for the security and convenience they provide. Death benefits will be paid to a beneficiary of your choice, whether they are a family member or close friend, or directly to the funeral home.

Can You Still Buy Life Insurance if You Have a Pre-Existing Condition?

If you’re someone with a pre-existing medical condition, you’ve probably assumed that you cannot get life insurance. In fact, there are many life insurance policies out there for people who have already been diagnosed with an ongoing medical issue such as diabetes or cancer, but they can be tricky to find.

There are a lot of people who believe that they cannot pass the medical exam that many life insurance policies require in order for them to receive coverage. Fortunately, there are a lot of coverage options available for individuals who cannot pass a medical exam. To start, there are several companies that specialize in life insurance that does not require a medical exam. While these policies tend to have smaller amounts of total coverage than life insurance policies that require a medical exam, they can be a valuable resource. A single one of these policies typically offers enough money to cover most of the expenses of a funeral. If a person needs more coverage than this, it is possible to combine several small policies together to get the amount of insurance that a family will need.

Another possibility is to look for a conditional policy. These policies provide coverage to a person as long as he or she meets certain terms. Usually, these conditions involve regular doctor visits for monitoring of their condition, but they can also include an agreement for the insured to make lifestyle changes such as losing weight or quitting smoking.

A final option is to opt for a policy that excludes coverage for death by the pre-existing condition. Essentially, these policies will only pay out to beneficiaries if the death occurs from something other than the medical conditions that are laid out in the policy. These types of policies have the added benefit of coming with cheaper premiums than what a person would otherwise normally pay.

Of course, life insurance policies that do not require individuals to pass any type of health exam and/or state a history of pre-existing conditions but cover just about everything usually have higher premiums than similar life insurance policies that do require health exams. Because of this, it is a good idea to take the tie to really consider exactly how much coverage you and your loved ones will need.

Do I Really Need This Stinkin’ Funeral Insurance?

skeptic

One question that I seem to get asked a lot from seniors is, “Do I really need funeral insurance?” Some of the even more skeptical out there go as far as to suggest it is just a big insurance scam.

When confronted with this, my first response often is, “Have you ever been faced with planning the funeral of a loved one?” From the more skeptical I usually get a negative answer to that question.

Is funeral insurance, sometimes referred to as final expense insurance, for everyone? No. It is absolutely not for everyone.

So for whom does a funeral policy make sense?

The most common people who I steer towards purchasing a funeral policy are those whose estate being left behind is not going to amount to a whole lot. Today, the average funeral cost can range between $7000 and $10,000. For some families, that is a pretty significant financial burden to leave behind to loved ones.

For someone who fits that description, a funeral insurance policy can be an inexpensive way to cover funeral expenses ahead of time.

In fact, some people will go a step further than that. They will sit down with a funeral director and plan out their final wishes ahead of time. What kind of service do they want to have? What type of casket? Will they have a big headstone or a small one? What will the headstone be made of? Do they want to be buried at all or would they rather be cremated? If they are cremated, what happens to the ashes?

All of this can be planned out and priced in advance. Knowing what the funeral service and arrangements will cost ahead of time will allow someone to buy an insurance policy that gives them the appropriate amount of coverage to ensure their final wishes are met.

What about for those who are in better shape financially?

“I have money. I have plenty of life insurance. Why is my agent even mentioning a burial policy?”

Well, sometimes, based on someone’s final plans for their estate and inheritance, even if they have the finances to cover a funeral, an individual will choose to buy a funeral policy anyhow. Their reasoning behind this is that they want their inheritance untouched by the expense of a funeral and have in mind a certain amount of money that they want to pass on. So they leverage a burial policy to keep their final assets intact.

Lastly, there are the really skeptical who say, “I’ll be dead. What do I care?”

It certainly is a personal decision, but the fact of the matter is that someone is going to be left with a bill to take care of your final arrangements. Do you really want your loved ones’ final memory of you to be a rather large bill they get from the funeral home?

skepticThank you to the Skeptic Wiki for contributing this article. The Skeptic Wiki seeks to dispel some of the myths and bad stereotypes that exist in relation to insurance and insurance agents. You can visit the Skeptic Wiki here.

Choosing Medicare Supplemental Insurance

TeriHill1

Medicare is a government insurance program which covers clients for basic health care needs. This includes visits to hospital, a stay in a hospital or hospice, or staying in a nursing facility. Parts A and B together provide inpatient and outpatient care, the costs of some equipment, nursing support, and certain preventative services. Part D looks after pharmaceutical requirements. There is an annual fee for owning one of these policies.

What does Medicare not cover? There is no money for clients who want cosmetic treatments such as Botox or laser skin treatment. Medicare is not responsible for dentures, hearing aids, eye tests, or teeth cleaning. Acupuncture is not covered and this is also the case with many types of alternative care. For more on what Medicare does and does not cover, you can enter in specific queries on this government page.

If you want to create a more comprehensive insurance plan for yourself and your family, it is advisable to purchase Medicare supplemental insurance. Policies are available privately through companies which sell Medigap insurance, but they can only be purchased when the client already has Medicare parts A and B. Each policy is for one person at a time. Medigap will not cover long term dental, vision, or hearing problems and accessories, but there are other ways in which a policy can be of practical help to a consumer.

For instance, if you travel outside of the U.S. regularly, there is a solid risk you will need care during one of these trips. If you are injured or become ill, having Medigap will help you pay for treatment. After retiring from work, group coverage is typically no longer available to a client. This would have been his or her supplemental policy. Now it is important to find coverage independently.

Search for a plan according to your budget. Each policy will pay for certain things such as receiving a blood transfusion to a certain limit or co-insurance. Medigap could cover you once you exceed your limit on medications bought using a Medicare plan.

Not all doctors or hospitals will accept Medigap or Medicare coverage. You must check beforehand if you seek care at a facility. Also, each state and every company is different, and not everything is offered everywhere. There are some legal minimum limits, and regulations as to who qualifies for Medigap.

Also, sometimes the cost of treatment is determined by the result. For instance, if you go to an emergency room but are not admitted, this will affect your deductible with Medigap. They will pay for more if you have to stay in hospital, but you will have to repay some of the money if you are sent home.

The options are pretty vast and can get quite complicated. As always, it is best to consult with your insurance agent to choose the coverage that will be best suited to meet your needs.

TeriHill1Thank you to Teri Hill from InterTec Media for writing this article. Teri has worked as a financial professional for over 27 years. Insurance and retirement planning are her specialties, but she also excels in real estate and everyday financial planning. You can visit Teri’s new site to find more great tips and information.