For a business, one of the most critical risks is the death of a founder. Studies have shown that if the founder dies, a business typically suffers a significant setback. Entrepreneurs must have a contingent plan to help their business survive their death.
Long-term financial planning is critical to ensure the long-term financial safety and security of a business. A reliable burial insurance plan is a critical aspect of long-term financial planning. Not only does burial insurance relieve your loved ones of the stress involved in organizing funds for meeting funeral expenses and other final expenses, but it also works as a structured savings mechanism.
Insurance expert Gary P. Cubeta from Insurance for Final Expense recommends comparing the pros and cons of different burial insurance policies like the AARP burial insurance before choosing one that suits you.
About Burial Insurance Policies
Burial insurance policies are very similar to life insurance policies. They are typically designed for people who are over 50 years old. The coverage limit could be anywhere between $5000 and $50,000. They come with lower monthly premiums than life insurance policies since they cover shorter terms. There are a few critical points you may want to consider while buying burial insurance policies.
Burial Expense Needs
It’s essential to assess your burial insurance needs before you start shopping for burial insurance policies. According to insurance expert Gray P. Cubeta from Insurance for Final Expense, policies like AARP burial insurance are ideal for people who do not need excessive burial insurance coverage.
Premium Rates and Protection Offered
The cost of the policy is another essential aspect to analyze when shopping for burial insurance. The premium rates may vary based on the coverage offered by different policies.
Therefore, you could compare the cost of similar burial insurance policies by different providers and choose the most cost-effective burial insurance policy. The cost may also vary based on the age and gender of the applicant.
Medical Testing Requirements and Waiting Period
The medical testing requirements of burial insurance policies are generally more lenient than that of life insurance policies. Burial insurance policies only cover burial expenses and other final expenses of the insured.
However, applicants with pre-existing health conditions may have to pay additional premiums or subscribe to specific burial insurance policies for people with pre-existing health conditions. Burial insurance policies generally have lower waiting periods or no waiting periods.
Best Burial Insurance Options
Several reputed insurance providers sell burial insurance policies in the US. You may want to choose a burial insurance policy that best aligns with your financial ability and burial insurance requirements.
AARP Burial Insurance Policy
AARP is a non-profit organization with over a million members. AARP partners with organizations like New York life to sell insurance policies to customers.
AARP burial insurance policies provide comprehensive burial insurance coverage at affordable rates. However, you may want to note that AARP does not sell insurance policies. The non-profit organization collaborates with other insurance providers to market their policies. AARP offers three burial insurance coverage options, namely:
- Level-benefit term life coverage
- Guaranteed issue whole life coverage
- Simplified issue whole life coverage
If you are looking for a suitable burial insurance policy with higher coverage, the level-benefit term life policy may be the best choice since it offers coverage of up to $100,000. The simplified issue whole life policy offers coverage of up to $ 50,000, and the guaranteed issue whole life policy offers coverage of up to $50,000.
You may also note that the coverage term for the level-benefit term life insurance policy expires when the person turns 80. The premium rates of AARP final expense insurance policies increase every five years.
Globe Life Insurance Final Expense Insurance Policy
Globe life offers final expense insurance at lower premium rates. Additionally, applicants also have the convenience of buying no medical examination final expense policies. The coverage limit of the final expense insurance policy is $50,000.
The policies are budget-friendly and offer sufficient coverage. The average cost of funerals in the US is around $10,000. Hence, the deceased person’s family can use the additional funds to meet other final expenses like medical expenses and legal expenses, if any.
The AIG Final Expense Insurance Policies
AIG offers final expense insurance coverage ranging from $5,000 to $25,000. The policies are designed for people who are between 50 and 80. Acceptance is almost guaranteed in the case of AIG guaranteed final expense insurance policies.
If you are looking for a burial insurance policy that offers healthy burial insurance coverage, you may consider the AIG guaranteed issue whole life insurance policy options.
Consult Your Agent
There are several affordable final expense policies that applicants can choose from. In addition, you could consider working with an insurance agent or expert insurance consultant to determine your burial insurance needs. Your agent can help analyze and choose from the best policies available in the market.
