Far too many Americans are putting off end-of-life planning. In fact, roughly 2 out of 3 Americans do not have an estate plan.
These individuals do not have a living will to guide loved ones on their last wishes. Naturally, it is uncomfortable for people to discuss and plan for their own death.
Burial insurance is another end-of-life topic that is often overlooked. Due to high inflation, funeral costs are rising faster than usual. The average cost of a funeral is nearing $8,000.
AARP burial insurance is the best way to pay for this unexpected expense. Read on to learn what burial expenses are covered. Explore topics such as final expense insurance and whether it will be enough coverage for you.
What Is Burial Insurance?
Burial insurance is another term used for final expense insurance. It provides coverage for end-of-life expenses, including a funeral, burial plot, coffin, and even medical debt.
There are many benefits to burial insurance. For starters, you do not need to take a medical exam. This is unlike some group life insurance policies that require it.
Another benefit is that the coverage amount never changes. Your premiums are not going to increase either. Contrary to term life insurance policies, final expense insurance does not expire or cancel with time.
When a loved one passes on, their designated beneficiary receives the coverage amount. It is given via a tax-free check that can be spent immediately upon receipt.
What Are the Details of AARP Burial Insurance?
AARP offers assistance for end-of-life expenses in three different forms. There is a term life insurance policy. There are also simplified issue and guaranteed issue whole life policies.
You could opt to get up to $100,000 in coverage with a term life plan. However, the downside is that it expires on your 80th birthday. Also, premiums are reevaluated every five years and typically increase.
Guaranteed and simplified issue plans provide remedies to these potential downsides. They provide permanent coverage, and you receive an immediate benefit after qualification. Even tobacco users do not pay an additional premium.
The downside to these plans is that they offer less coverage. You can purchase a $2,500 to $50,000 policy, depending on your needs.
Term life insurance has cheaper premiums than the other plan types. This is due to the expiration date of 80 years old. If you live to be older than 80, you receive no coverage and will not have your burial expenses covered.
Because they do not expire, guaranteed and simplified issue plans are more expensive. You will pay more per month for the peace of mind that your burial expenses will be covered.
Your Guide to Burial Insurance
You are now ready to shop for a burial insurance plan. It is important to work with a licensed insurance agent to get the policy that meets your needs. There are different types that offer policyholders various benefits.
If you are interested in purchasing AARP burial insurance, contact us today to speak with an expert.