Burial insurance provides financial protection for end-of-life expenses. For 86-year-olds, this coverage becomes increasingly important yet more challenging to obtain. The average cost for a $5,000 to $10,000 burial insurance policy for an 86-year-old ranges from $90 to $320 per month.

Age plays a significant role in determining premiums, with older individuals facing higher costs. Factors such as health status, tobacco use, and desired coverage amount also impact pricing. Despite the expense, burial insurance offers peace of mind by ensuring loved ones won’t face financial burdens after a policyholder’s passing.

Seniors over 85 typically have limited options, with $25,000 being the maximum coverage available from a single insurer. Some individuals opt to purchase multiple policies from different companies to increase their total coverage. The death benefit is paid as a tax-free cash sum, providing flexibility for beneficiaries to cover funeral costs and other final expenses.

Understanding Burial Insurance

Burial insurance provides financial protection for end-of-life expenses. This specialized coverage helps families manage funeral costs and other related expenses.

Defining Burial Insurance

Burial insurance is a type of life insurance designed to cover funeral and burial expenses. Policies typically range from $5,000 to $25,000 in coverage. These plans are often easier to qualify for than traditional life insurance, especially for seniors or those with health issues.

Burial insurance pays out a lump sum to the beneficiary upon the policyholder’s death. This money can be used for funeral services, burial or cremation costs, and other final expenses.

Burial Insurance vs. Final Expense Insurance

Burial insurance and final expense insurance are often used interchangeably. Both provide coverage for end-of-life costs. The main difference lies in the flexibility of fund usage.

Burial insurance is specifically earmarked for funeral and burial expenses. Final expense insurance offers more flexibility, allowing beneficiaries to use the funds for any purpose.

Some insurers offer combined policies that cover both burial costs and other final expenses.

Key Features of Burial Insurance

Burial insurance policies have several distinct features:

• Simplified underwriting: Often requires no medical exam
• Fixed premiums: Rates typically don’t increase with age
• Guaranteed acceptance: Available for most seniors, regardless of health
• Quick payout: Benefits are usually paid within days of death
• Small face value: Policies generally range from $5,000 to $25,000

These features make burial insurance an accessible option for seniors seeking to protect their families from funeral costs.

Importance of Burial Insurance for Seniors

Burial insurance provides crucial financial protection for seniors and their families. It covers end-of-life expenses and offers peace of mind during a difficult time.

Covering Final Expenses

Burial insurance helps seniors plan for the inevitable costs associated with their passing. The death benefit can cover funeral expenses, cremation fees, and other final arrangements. Typical funeral costs range from $7,000 to $12,000, which can be a significant burden without proper coverage.

Policies often provide $5,000 to $25,000 in benefits, allowing seniors to choose coverage that matches their anticipated needs. This ensures that funds are available to carry out their final wishes without compromising on quality or burdening their loved ones financially.

Alleviating Financial Burden on Loved Ones

One of the primary reasons seniors purchase burial insurance is to protect their family from financial strain. The policy’s death benefit is paid directly to the beneficiary, typically a family member or trusted individual.

This money can be used to cover:

• Funeral home services
• Casket or urn
• Cemetery plot
• Headstone or memorial
• Transportation costs
• Outstanding medical bills

By planning ahead, seniors spare their loved ones from making difficult financial decisions during an emotionally challenging time.

Peace of Mind for Policyholders

Burial insurance offers seniors comfort knowing their final expenses are taken care of. This peace of mind is invaluable, especially for those on fixed incomes or with limited savings.

Key benefits include:

• Guaranteed acceptance: Many policies don’t require medical exams
• Fixed premiums: Rates typically don’t increase with age
• Quick payout: Benefits are often distributed within days of filing a claim

Seniors can relax knowing they’ve made responsible arrangements for their final needs. This foresight allows them to focus on enjoying their golden years without worrying about becoming a financial burden to their families.

Choosing the Right Burial Insurance Policy

Selecting an appropriate burial insurance policy involves careful consideration of coverage needs, comparing providers, and understanding policy terms. These factors help ensure you find the best protection for your specific situation.

Assessing Coverage Needs

Determine the desired coverage amount based on anticipated funeral costs and any outstanding debts. The national median funeral cost with a viewing is around $7,848. Factor in additional expenses like cemetery plots, headstones, and potential medical bills.

Consider your current savings and assets when deciding on coverage. Some seniors may only need a small policy to supplement existing funds, while others might require more substantial coverage.

Evaluate your budget to determine affordable premiums. For 86-year-olds, monthly premiums can range from $90 to $320 for $5,000 to $10,000 in coverage.

Comparing Insurance Providers

Research multiple insurance companies specializing in burial or final expense policies. Look for providers with strong financial ratings and positive customer reviews.

Compare quotes from different insurers to find competitive rates. Some top-rated burial insurance companies include State Farm, Mutual of Omaha, and AIG.

Examine each company’s underwriting process. Some may offer guaranteed acceptance policies without health questions, while others require medical exams.

Consider working with a licensed insurance agency to help navigate options and find the best fit for your needs.

Understanding Policy Terms

Review the policy’s waiting period, typically 2-3 years for guaranteed issue policies. During this time, beneficiaries may only receive a return of premiums paid if the insured passes away.

Examine coverage options, such as level benefit vs. graded benefit policies. Level benefit policies offer full coverage from day one, while graded benefit policies increase coverage over time.

Check for policy riders that may enhance coverage, such as accelerated death benefits or accidental death benefits.

Understand the difference between term and whole life policies. Whole life policies generally offer lifelong coverage and accumulate cash value, while term policies provide coverage for a specific period.

Policy Options and Features

Burial insurance for 86-year-olds typically comes in several forms, each with distinct features and eligibility requirements. These options aim to provide financial protection for end-of-life expenses.

Whole Life vs. Term Life Insurance

Whole life insurance offers lifelong coverage with fixed premiums and a guaranteed death benefit. It builds cash value over time, which can be borrowed against if needed. Term life insurance, on the other hand, provides coverage for a specific period, usually 10-30 years. For 86-year-olds, term policies are rare due to age limitations.

Whole life policies are generally more suitable for seniors seeking burial insurance. They ensure coverage remains in place regardless of how long the policyholder lives. The premiums stay level, making budgeting easier for those on fixed incomes.

Guaranteed Issue Whole Life Insurance

Guaranteed issue policies are designed for individuals who may not qualify for traditional life insurance due to health issues. These policies don’t require a medical exam or health questions. Acceptance is guaranteed for eligible age groups, typically up to age 85 or 90.

Benefits:

• No health qualifications
• Fixed premiums
• Builds cash value

Drawbacks:

• Higher premiums
• Lower coverage amounts (usually $5,000 to $25,000)
• Graded death benefits in the first 2-3 years

Simplified Issue Whole Life Policies

Simplified issue policies offer a middle ground between fully underwritten and guaranteed issue policies. They require answering a few health questions but don’t involve medical exams. Coverage is not guaranteed but is more accessible than traditional policies.

Key features:

• Quick approval process
• Moderate premium rates
• Higher coverage limits than guaranteed issue
• Some health questions required

These policies often provide immediate full death benefits. They’re suitable for seniors in relatively good health who want faster coverage without extensive medical underwriting.

Eligibility and Application Process

Obtaining burial insurance at age 86 involves specific eligibility criteria and application procedures. Insurance providers assess various factors to determine coverage options and premiums for seniors in this age group.

Medical Exams and Health Questions

Most burial insurance policies for 86-year-olds do not require a medical exam. Applicants typically need to answer health questions on the application form. These questions cover current health status, medical history, and lifestyle factors.

Insurance companies use this information to evaluate risk. Some policies offer guaranteed acceptance without health questions, but these often come with higher premiums or limited benefits.

Pre-existing conditions may affect eligibility or coverage terms. Applicants should disclose all relevant health information accurately to ensure valid coverage.

Insurance Rates for Seniors

Burial insurance rates for 86-year-olds are generally higher due to increased risk factors associated with advanced age. Monthly premiums can range from $90 to $320 for policies with death benefits between $5,000 and $10,000.

Factors influencing rates include:

• Gender
• Tobacco use
• Health status
• Coverage amount

Female non-tobacco users often receive lower rates compared to male tobacco users. For example, a female non-smoker might pay around $87 per month for a $5,000 policy, while rates for smokers or those with health issues could be significantly higher.

Immediate Coverage vs. Waiting Periods

Some burial insurance policies offer immediate coverage, providing full benefits from day one. These typically require answering health questions and may exclude applicants with certain conditions.

Policies with waiting periods are more accessible for those with health issues. During this period, which usually lasts 2-3 years, beneficiaries receive a limited payout if the insured passes away from natural causes.

After the waiting period expires, full coverage takes effect. Accidental death often receives full benefits immediately, even during the waiting period.

Seniors should carefully consider their health status and financial needs when choosing between immediate coverage and policies with waiting periods.

Financial Considerations

Burial insurance for 86-year-olds involves careful financial planning. Costs, payment structures, and managing final expenses require thoughtful consideration to ensure proper coverage.

Calculating Burial Insurance Costs

Burial insurance rates for 86-year-olds typically range from $90 to $320 per month for policies between $5,000 and $10,000. Age is the primary factor in determining premiums. Health status and tobacco use also impact costs.

For a $10,000 policy, an 86-year-old might pay around $200 monthly. This translates to $2,400 annually.

Comparing quotes from multiple insurers is crucial. Rates can vary significantly between companies.

Payment Options for Seniors

Many insurers offer flexible payment options for seniors on fixed incomes. Monthly, quarterly, semi-annual, and annual payment schedules are common.

Some companies provide discounts for larger upfront payments. A 5-10% discount may apply for annual premium payments.

Automatic bank drafts or credit card payments can simplify the process. This ensures timely payments and maintains coverage.

Managing Final Expenses and Debts

Burial insurance can cover more than just funeral costs. It can help manage outstanding debts and medical bills.

The average funeral cost with viewing is around $7,000-$9,000. Additional expenses may include:

• Cemetery plot: $1,000-$4,000
• Headstone: $1,000-$3,000
• Outstanding medical bills
• Credit card debts
• Personal loans

Carefully assess all potential final expenses when choosing a coverage amount. A policy that’s too small may leave loved ones with unexpected costs.

Common Providers of Burial Insurance for Seniors

Several established insurance companies offer burial insurance policies tailored for seniors. These providers have developed specialized products to meet the unique needs of older adults seeking final expense coverage.

Mutual of Omaha’s Insurance Offerings

Mutual of Omaha provides burial insurance policies designed for seniors up to age 85. Their plans offer coverage ranging from $2,000 to $40,000, with no medical exam required.

Mutual of Omaha’s policies feature level premiums that remain consistent throughout the life of the policy. This predictability can be beneficial for seniors on fixed incomes.

The company offers both simplified issue and guaranteed acceptance options. Simplified issue policies may provide immediate coverage after answering a few health questions, while guaranteed acceptance policies have a two-year waiting period for full benefits.

AARP’s Life Insurance Programs

AARP partners with New York Life to offer burial insurance to its members aged 50-80. These policies provide coverage amounts between $2,500 and $50,000.

AARP’s burial insurance plans do not require medical exams. Applicants answer a brief health questionnaire to determine eligibility.

The organization’s policies include a cash value component that grows over time. This feature allows policyholders to access funds if needed during their lifetime.

AARP also offers a 30-day money-back guarantee, giving seniors time to review their policy and ensure it meets their needs.

American Amicable’s Senior Policies

American Amicable specializes in life insurance for seniors, including burial insurance options. Their policies are available for individuals up to age 85.

The company offers simplified issue whole life policies with face values ranging from $2,500 to $35,000. These policies build cash value over time and provide lifelong coverage.

American Amicable’s application process is straightforward, with no medical exams required. Policies can often be issued within days of application.

The company also provides a terminal illness rider at no additional cost, allowing policyholders to access a portion of their death benefit if diagnosed with a terminal illness.

Additional Considerations for Final Arrangements

When planning for end-of-life expenses, several key decisions need to be made. These choices impact the overall cost and nature of the final arrangements.

Selecting Between Burial or Cremation

Burial and cremation offer distinct options for final disposition. Burial typically involves purchasing a casket, cemetery plot, and headstone. These costs can add up quickly, often ranging from $7,000 to $12,000 or more.

Cremation is generally less expensive, with basic services starting around $1,000 to $3,000. This option provides flexibility for memorial services and final resting places.

Factors to consider include:

• Personal or religious preferences
• Environmental impact
• Cost differences
• Family traditions

Planning the Memorial Service

Memorial services provide an opportunity for loved ones to gather and honor the deceased. These can range from simple gatherings to elaborate events.

Key elements to consider:

• Venue (funeral home, place of worship, or other location)
• Officiant or speakers
• Music or readings
• Display of photos or mementos

Costs vary widely based on choices made. A basic service might cost $2,000 to $4,000, while more elaborate events can exceed $10,000.

Pre-planning allows individuals to specify their wishes and potentially lock in current prices.

Investing in a Pre-Need Insurance Plan

Pre-need insurance plans offer a way to pay for funeral expenses in advance. These plans can provide peace of mind and financial protection for loved ones.

Benefits of pre-need plans:

• Lock in current prices for future services
• Customize arrangements to personal preferences
• Reduce emotional and financial burden on family members

Costs depend on the chosen services and payment options. Monthly premiums typically range from $50 to $300, based on age and coverage amount.

It’s important to carefully review the terms and conditions of any pre-need plan. Some policies may have limitations or exclusions that could affect coverage.

Evaluating Customer Satisfaction and Company Reliability

When selecting burial insurance for 86-year-olds, assessing customer satisfaction and company reliability is crucial. This helps ensure you choose a reputable insurer that will fulfill its obligations when the time comes.

Reading Customer Reviews

Customer reviews provide valuable insights into an insurer’s performance. Look for feedback on claim processing speed, customer service quality, and overall satisfaction. Pay attention to reviews from beneficiaries who have gone through the claims process.

Consider using trusted review platforms like J.D. Power or the Better Business Bureau. These sites often provide aggregated ratings and detailed customer feedback. State Farm, for example, scored 808 out of 1,000 in J.D. Power’s 2019 customer satisfaction survey for life insurance.

Be wary of overly positive or negative reviews. Look for patterns in feedback to get a balanced view of the company’s strengths and weaknesses.

Checking Financial Strength Ratings

Financial strength ratings indicate an insurer’s ability to pay claims. Independent rating agencies like A.M. Best, Moody’s, and Standard & Poor’s evaluate insurers’ financial health.

Look for companies with ratings of A- or higher from A.M. Best. These ratings suggest strong financial stability. For example, Mutual of Omaha, which offers burial insurance for ages 45-85, has consistently maintained high financial strength ratings.

Remember that ratings can change over time. Check the most recent ratings when evaluating potential insurers. Consider multiple rating agencies for a comprehensive view of the company’s financial health.

Member Benefits with Organizations Like AARP

Some organizations, like AARP, offer burial insurance programs with additional benefits for members. AARP’s program, provided by New York Life, includes features like simplified underwriting and guaranteed acceptance for members.

Member benefits may include:

• Discounted premiums
• Locked-in rates
• No medical exam requirements
• Additional riders or coverage options

Compare these member-exclusive offerings with standard policies. While they can provide value, ensure the coverage meets your specific needs and budget constraints.

Consider the organization’s reputation and longevity when evaluating member-based insurance programs. This can provide additional assurance of the program’s reliability and stability.