How to Buy the Best Burial Insurance for Your Parents


Buying burial insurance for your parents can be a touchy subject for anyone. It is a tough topic to discuss. Besides, traditional funeral costs in the U.S. are no less than $8000. If you are not prepared, this can double the trauma of losing your parents.

Many of us wait until our parents get into their 80s to start planning. We all expect our parents to live long lives.

So, any early death can put you in deep distress and create a financial shock. Your parents may have enough assets in the vault, but without probate, it is always out of your hand and can take more than a year or so to settle.

Other than that, you have to pay the funeral home upfront for a successful funeral program.

No one wants a hassle in those tough times. You are ready to break banks and do whatever you can to see off them one last time. However, this can rein in your lifestyle choices in a financial crunch.

How do children pay for burial expenses?

The best way to cover such expenses is burial insurance.

All you need to do is to convince them and sign an agreement of burial coverage. You will pay the premiums, and you can be the owner, payer, and beneficiary of that insurance.

Burial insurance is an exclusive insurance policy that provides death benefits ranging from 5000 to 25000 dollars. Once your parents die, the insurance company will either provide this money to you or the funeral house for final expenses.

Most insurers offer burial insurance for people aging 50 or above.

Not only does it cover burial expenses, but it also provides coverage for hospital bills and medical expenses that your parents incurred before their death.

Most of us think of burial insurance as a costly option and turn back from it. However, this is way more affordable and adjusts to your financial condition. You just need to pay 2 to 3 dollars a week or so.

To know more about this policy, click here.

Why It is Important for You to Buy Burial Insurance For Parents?

Most U.S citizens have no perfect retirement ideas for funds.

Transamerica Center for Retirement Studies reports only 61 percent have sufficient funds to live until death. Even if your parents are rich, a year in a nursing home can blow big budgets. In 2016, the average cost of a nursing home was more than 80,000 dollars.

That is 3 times the annual income of most senior citizens.

Because of the high inflation rate and rising medical costs, your parents may liquidate their life insurance policy in nursing home costs alone. Also, a term policy at old age can be way more expensive.

Burial insurance can secure the final expense coverage.

Types of Burial Insurance

There are two main variants of burial insurance. Before you choose one, note the differences and discuss them with your parents.

  1. The Traditional Policy or Level Benefits

This policy provides a full face amount once the application is approved.

So, if your parents die a week after approval, you will get 100% of the benefits. This policy is more preferable if your parents are in good health or if they are controlling their health complications with medications.

  1. Graded Benefit Policy

If your parents have serious health problems, then this is the policy to go with.

In general, it is a 24 month graded plan for death benefits. You will get 100% face value after waiting for 24 months. However, if your parents die in the waiting period, then your carriers will return premiums with interest.

A common example of the 24-month graded plan:

  • 30% of death benefits for the first 12 months.
  • 70% of death benefits from 13 to 24 months.
  • 100% of death benefits after 24 months.

Convince Your Parents

For burial insurance, the company will require your parent’s consent to inspect their medical records. Also, it is important to let them know about burial insurance planning. Approaching this topic and convincing them is not easy. Follow the below tips to convince them of burial insurance.

  1. Plan to Speak up the Topic

It can be disturbing to discuss your parent’s death at any occasion. Try to find a slot when you find them a bit lonely. Start with current financial challenges and then slowly try to move towards that topic.

  1. Consider Emotions

What if your children offered you to buy burial insurance? That is tough to digest. Count the emotional values of your parents and make them understand the financial expense.

  1. Include Siblings in Your Plan

Convince your siblings and have them join your plan. They can also participate in covering the monthly or annual premiums. Even if you are able to pay for all of it, push them for having an open discussion with your parents.

  1. Do not Pressure Them

If you see your parents hesitating on this issue, then hold back on discussing it for a while. No need to pressure them. Also, ask your siblings not to refute over their concerns. Instead, opt for a savings account and save some money on that future expense in that way. Your parents don’t have to know

Purchase Burial Insurance for Your Parents

If you are successful in convincing your parents, it’s time to purchase burial insurance for them. First things first! Read the company policy and all the terms and conditions for this package.

It is important to look for a premium policy that does not increase its rate over time. Also, you have to let the company know about your insurable interest, which means you may suffer a financial meltdown without such protection.

Burial insurance does not require any physical exam for your parents. To access your parents’ health records, they will provide you with a HIPPA form.

Fill out the forms and receive your documents. Read the plan twice and ask any questions you have to the company representative. Make the first premium payment, and you are good to go for this insurance package.

Final Verdict

Burial insurance may sound odd to many of you. However, it is the best policy to save you from the financial shock of the cost of a sudden death. Though it is a sensitive issue to buy burial insurance for your parents, it is better to face reality.

Spending $10,000 at a time is no easy task for many of us. Getting sudden big loans is also difficult, so an exclusive plan like burial insurance can be the safest exit plan to go for. Decide before you regret it. 

Jeff Campbell

Jeff Campbell is a husband, father, martial artist, budget-master, Disney-addict, musician, and recovering foodie having spent over 2 decades as a leader for Whole Foods Market. Click to learn more about me

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