As we grow up, our parents get older. And it’s our turn to take good care of them the way they did when we were little. That’s why we need to do it with love, smile, and patience.
You may be thinking about buying burial insurance for your parents since you’re responsible for their burial cost, as well as final expenses.
Such matters can be a bit uncomfortable to contemplate, but it’s quite essential to make sure the final journey of your parents goes smoothly and with proper respect. Besides, it will be helpful to you and your siblings as you have your own expenses to deal with.
Things to Know About Burial Insurance?
As the name suggests, burial insurance or final expense plan is a type of life insurance designed to cover the funeral and other related costs.
Unlike a whole life insurance policy, burial insurance must be used to pay funeral and burial costs. Instead of a funeral home, the beneficiary will get the money to spend after the death of a particular person.
Burial insurance can be purchased for small amounts, and it creates a cash value over time. Unlike other types of life insurance, this one doesn’t require any medical exam. All you need to do is just fill up a form with basic questions, and you’re good to go.
Tips for Buying a Burial Insurance for Your Parents
Purchasing burial insurance is a sensitive issue, especially when you’re buying it for your parents.
While you don’t want to lose them at any cost, some things are inevitable. That’s why you want to make sure they have the proper funeral they deserve.
Here are some of the tips, which you need to follow before purchasing a final expense plan.
Choose a Good Insurance Provider
There are so many insurance providers out there, and you might know only about 1% of them.
It’s essential to get a company that will provide you with proper information about the policy you want to purchase. You need to get a solid idea about the risks and other factors associated with that insurance policy.
It’s always better to choose an independent agent such as Insurance For Final Expense. Working with an independent agent will let you choose from multiple companies, increasing your chance of success.
Also, choosing an independent agent is less costly as they get paid by the insurer, meaning that you don’t have to pay any service charge to them.
Make Sure You Have Your Parents’ Consent
You might be thinking about purchasing insurance without discussing it with your parents since the subject can be a bit touchy. But, unfortunately, you have to do that.
You cannot buy final expense insurance without the insured’s consent, meaning that you need to discuss the matter first with your mom and dad.
While facing your parents’ death is difficult for you, discussing such matters with them can be even more disturbing.
Find a suitable time and environment to talk to them when it makes sense to them. Otherwise, they will be shocked and have difficulty digesting the information you give them.
Involve Your Siblings
If you have a brother or sister, or both, they might also have some plan for their parents as well. Involving them in this insurance plan can be a great help both financially and emotionally.
If you have trouble discussing the matter with your parents, you can take help from your siblings. Also, they can bear half of the premiums that need to be covered monthly or yearly.
Even if you’re planning to bear the cost all by yourself, make sure you inform your siblings to avoid any conflict in the future.
Find Out How Much Coverage You Need
The average cost of a funeral may vary depending on the style of service they get. There will also be some additional costs, such as purchasing a burial plot, transporting the remains, unpaid medical bills, etc.
Since all these costs will be covered by burial insurance, you need to determine exactly how much you will have to pay.
You can talk to some funeral homes and get an idea about the total cost, which will help you choose the right coverage for your parents.
Gather Full Information About Your Parents’ Health
One of the best parts of purchasing final expense insurance is that it doesn’t require any medical exam. However, you need to be aware of certain information as you have to fill up a form.
You will have to provide certain information about your parents, such as their age, weight, height, date of birth, health condition, medical history, etc.
Make sure you gather all the information before you purchase the insurance so that the process goes smoothly.
Avoid Goodman Triangle
You may wonder what a goodman triangle is and why you should avoid it? It’s extremely crucial to understand this term as it may save you from a potential tax bill.
A goodman triangle is a term in any life insurance where the insured (in this case, your parents), the payor (you), and the beneficiary (let’s say your sibling) are three different people.
If you choose someone else as a beneficiary, it will be considered as a gift to them, and you will have to pay tax. To avoid this situation, make sure the payor and the beneficiary are the same persons.
Look at Your Budget
You may want to arrange a perfect funeral for your parents to show your love to them, but the question is… can you afford it?
Don’t go for something for which the monthly premium will be too high for you to pay.
Remember, you’re buying insurance so that your parents’ funeral goes smoothly. Don’t get provoked by something that your budget can’t allow, and you have to give up after some days.
Final Thoughts
Throughout the years, our parents have made so many sacrifices for us. While you can’t repay what they did for you, you can at least show your love and respect when they are older.
While purchasing final expense insurance, make sure you don’t end up hurting their feelings. Consider the emotions you would have if your child approached you about something like this and act accordingly.
You can’t make sure they will live forever. But you can at least show them respect and love by making sure they have a proper funeral by getting the burial insurance for them.
Leave a Reply