If you are the one who is responsible for your parent's final expenses and all the costs associated with their funeral, then burial insurance is something you will want to consider in order to provide you and your siblings with a bit more financial stability for when the time comes.
It can be hard finding ways to pay for all of your parent's final expenses when you still have your own expenses to consider as well. Reportedly, the average funeral in the United States can cost upwards of $7,000 to $8,000; however, several factors can affect this final number, and it can end up being even costlier than you originally calculated.
What Is Burial Insurance?
Burial insurance is a type of insurance coverage that covers the costs related to the funeral and final expenses. This coverage can only be used for funeral, and cemetery costs and any money that is remaining after these expenses typically goes toward paying any hospital bills or other expenses there may be.
Purchasing Burial Insurance for Parents
Very often, you will find that a lot of people don’t have sufficient funds available to cover these necessary expenses after their loved one dies. Even if your parents have access to a healthy retirement account or other savings, the funds can easily and quickly diminish as more and more expenses begin to add up. Perhaps they need to live in a nursing home or accrue medical expenses; the savings they have built up won't last long.
All of this means that the final expenses for your parents may very well fall on your shoulders, so you need to do what you can to prepare for that day, so you don't face financial ruin. Burial insurance is a good direction to take in order to ensure more financial security and stability for the future.
Obtaining a Policy
Purchasing a burial insurance policy is generally straightforward and easy to accomplish. You first want to understand and narrow down all the choices available and then determine just how much coverage you will likely need. Level premium policies are ideal because they come with rates that will not increase over time.
When purchasing the policy for your parents, inform the insurance company that you have an insurable interest. This means you may face financial hardship as a result of paying the expenses on your own.
Burial insurance does not require any kind of physical exam for coverage. However, you will be given a HIPAA form so that you can access your parent's health records. Once the policy has been finalized, you will receive all the documentation you need, and then you will make the first premium payment on the policy.
Talking to Your Parents
To purchase the policy, your parents will also need to give consent unless you are a legal guardian. In this case, you will need to sit down with them and go over the details. Remember to be sensitive to their feelings and ask for help from your siblings if you need to. Listen to any concerns they may have and keep the line of communication open.