Choice Mutual Insurance Agency

You can buy final expense insurance for your parents. However, even though you're paying for it, they will need to participate in the process. They'll have to answer the health questions if there are any. Also, they will need to agree to the policy being issued. Most insurance providers will allow them to consent verbally, electronically, or by applying a wet signature to paperwork.

Burial insurance is a small whole life policy that pays out the death benefit quickly. Health conditions won't preclude you from qualifying. In fact, some plans are guaranteed acceptance where you cannot be denied due to pre-existing health issues. Since it's a whole life policy, the rates won't increase, and the poilcy lasts forever. Many people think burial/final expense insurance is different from life insurance. It's still life insurance because a funeral only happens when a life ends.

Final expense insurance is a particular type of whole life insurance with small coverage options. The payout is typically meant to cover funeral expenses, but the money can technically be used for anything. Whole life is a type of permanent life insurance that lasts forever. In addition, the premiums never increase, it builds cash value for future growth, and it will never decrease in value. You can have as many beneficiaries as you'd like or have the money paid directly to the funeral home of your choice.

Final expense insurance is a type of life insurance. To be specific, it's a small whole life policy that does not require an exam to qualify. Because it's life insurance, the net payout will simply be a tax free cash benefit. Your loved ones can spend the money on anything such as funeral expenses, medical bills or unpaid debts. Whole life policies have a fixed cost and death benefit. The policy will never expire and it builds cash value.

Most life insurance companies offer plans that have no waiting period. It's important to remember that you must qualify for a no waiting period policy. You have to apply with a company where you answer questions about your health. If you buy a policy (from any company) where there are no health questions, there will always be a 2-3 year waiting period.

A typical burial service with a vault will cost right around $10,000. A cremation service is less expensive, typically costing $6,970 (with viewing). Here's a good resources for a more complete breakdown of funeral costs in each state: https://choicemutual.com/funeral-cost/

In short, some plans fully insure you right away, some offer partial coverage and then some plans make you wait two years before you're insured. Check out this article. It has a really good breakdown of each option: https://choicemutual.com/best-burial-insurance-companies/#types

Burial insurance is a type of whole life insurance meant to pay for end-of-life expenses. Since it's a whole life policy, cash value will accrue over time. Think of the cash value as a behind-the-scenes savings account. Every time you make a payment, a small portion goes into the cash value. You can withdraw these funds any time you want. Also, suppose you ever cancel (aka surrender), the insurance company will send you a check equal to your total cash value.

Generally, it would be best if you opted for a plan that requires you to answer health questions. That will lead to lower premiums and coverage that has no waiting period. Most final expense insurance companies are very welcoming of applicants who have pre-existing conditions. The best thing to do is to speak with a qualified independent agency (such as Choice Mutual) that can compare offers from multiple insurers to find the best one for you.

There are really three types of burial insurance. Some plans fully insure you 100% for natural or accidental causes of death. Then some plans offer partial coverage. With a partial coverage option, you're only insured for a portion of the death benefit during the first two years. For example, a partial plan with most companies will provide a 30% payout for death in the first 12 months. Then during months 13-24, it will pay out 70%. After two years, the full death benefit is payable moving forward. Finally, the last type of plan has a full two-year waiting period. With these, any non-accidental death during the waiting period will only result in a refund of your premiums plus a small amount of interest (typically 10%). After two years, then the entire amount is payable. It's important to note that plans with partial coverage or a full waiting period will pay out the full death benefit for accidental death during the first two years.