Burial Life Insurance
When it comes to our parents, the last thing we may want to think about is the day of their death
. After all, these invincible people who took care of us for all these years will never die. Unfortunately, it is not yet the case! Until the medical community comes up with the cure for death, we need to prepare for that day when we or our parent passes away and expenses need to be taken care of.And the most common expense that needs to be covered right away is the cost of burial. Although there may be many ways to take care of this expense, one of the easiest and most cost effective way is with a burial life insurance policy. And one of the fastest way to take care of that is with a simple, fast answer, no exam life insurance. These types of policies have been specifically created to take care of burial costs for seniors.
The most used no exam burial life insurance is whole life insurance. It is available in amounts from $1,000 to as high as $75,000 ($75,000 would be a but too much). The most common amount of coverage is $10,000. As far as what face amount your policy should have, depends on your personal needs and where in the country you live. Two main factors that may affect the amount of burial life insurance you should have are whether you would want to be cremated or whether you would want to be buried? Either way, we recommend that the face amount of your burial life insurance policy be at least $10,000 and as much as $30,000. Considering that being cremated cost about $1,500, why would you want to carry a bigger policy? Simply because, as we get closer to that last day in life, we tend to reconsider many thing and how to be buried is certainly one of them. Please remember that the policy is just to cover burial costs not other final expenses.
One mistake we have seen made is to select a policy only on cost and not consider length of coverage guarantee. We do not recommend super low cost whole life insurance polices with guarantees below age 100 as the policy is more likely to end before you die and getting a replacement policy will be expensive or impossible. We also do not recommend using universal life as it can be too unpredictable. And we strongly do not recommend term life insurance! In other articles, we have recommended the use of term life insurance if you could not afford the amount of insurance you needed with whole life. When it comes to burial life insurance, term is not recommended at all, even if you will be under-insured.
We recommend to policies, the whole life guaranteed to age 100 and the ten pay whole life. The whole life to age 100 is very simple and affordable. The most important aspect of this policy is that it guarantees that the policy will not lapse before age 100. With a ten pay whole life policy, after paying premiums for ten years, you can just stop all premium payments and your burial whole life policy will be guaranteed to continue to at least age 100. As with the whole life guaranteed to age 100, the ten pay whole life, the policy will usually endow at age 100 and pay you the face amount whether you died or not. Depending upon how much in premium you had paid into the policy, you should receive the cash value tax free or mostly tax free (please consult your accountant). If you can get a policy to age 120 (one of the newer ones), that is even. Why 120? Well, the fact is there are more people over age 100 today than at any other times (in the US, more than 84,000 in 2009).
we hope this article was of help to you. As with any important decisions, we always recommend that you ask a lot of questions. So, as we say in all of our articles, ask, ask and ask as many questions as you need to. Be well.
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