The thought of losing parents can be an unbearable one for many children, even if those children are full-grown adults. Being prepared, however, can help. It might not lessen the emotional blow, but having plans in place can make things easier to deal with in a time of extreme grief. Part of planning should include funeral plans and what your parents’ wishes are. Another part of your planning should be burial insurance.
The Importance of Burial Insurance
The average cost of funerals in the United States range from $7,000 to $10,000. These estimates cover the basic costs, such as funeral director’s fees, a casket, and the burial. They do not often include other costs like programs and flowers. These and other miscellaneous fees can quickly drive the price up much higher. In addition to the cost of paying for a funeral, you then have to deal with any debts that are left behind such as loans and credit cards.
Not only are you dealing with all of these costs, you are also dealing with the grief of losing a parent. You can help to alleviate the stress, both mental and financial, of all of these issues by taking by buying burial insurance for your parents. Burial insurance is a type of life insurance policy that is designed to cover all of the costs associated with a funeral, from preparing the body for a viewing to the burial. Any money left over from the policy can also be used to help pay for any debts your parents leave behind.
Can I Buy Burial Insurance for My Parents?
In short, yes, you can buy final expense insurance for your parents. Doing so is actually a lot more common than people think. While your parents can take out burial insurance policies on themselves to help alleviate the costs of their funerals and other associated costs, there are some parents who are not able to do so. While children don’t like to think about the eventual loss of their parents, being prepared can help you to rest easier knowing that you will have the necessary funds in place to pay for the necessary services.
Do I Need Permission?
In order to purchase burial insurance for your parents, you will need to have some things in order. First, you need to prove insurable interest. This means that you would suffer a financial loss if you parents passed. As their child, this requirement is met. Typically, funeral expenses as well as leftover expenses like medical, credit card, and other loan debts, count toward this loss. Secondly, while your parents don’t need to undergo any medical exams, burial insurance will ask a few health history questions. In order to get access to this information, you will need permission.
How Much Should I Take Out?
As previously stated, the average cost of a funeral is between $7,000 and $10,000. These costs vary based on the specifics that you choose, as well as other things that you add. You can call local funeral homes to get estimates to get a better idea of what you will be looking at based on what your parents’ wishes are and what you would plan for their funeral. You should also take into consideration the other debts that your parents have to get a better idea of just how much insurance coverage you are going to need.
Finding the Best Policy for Your Parents
There are two basic types of burial insurance policies, traditional and graded. A traditional policy provides 100% of benefits starting on the day that the policy is issued. A graded policy, on the other hand, pays out in steps, with full coverage being provided two or more years after the policy is issued. This type of policy may be your only option if your parent is in poor health.
In addition to looking at the types of policies, there are a few other things to keep in mind. Look for an insurance company that has a good track record. You should also try to find the lowest possible premiums with the highest coverages. The sooner you start the search for burial insurance, the lower your premiums will be.
Buying burial insurance for your parents is an important part of dealing with the expenses involved in a funeral as well as any debts that are left behind after they are gone. Burial insurance will help you to honor your parents without having to worry about how you are going to pay for it all.