After the best funeral insurance for seniors? Find funeral insurance for over 60 year olds with no medical examinations
If the financial security of your loved ones is important for you, then planning for your funeral is a must. A funeral insurance policy can help cover your final expenses when you pass away, to help your family out during a difficult time.
Benefits of funeral insurance for seniors?
Seniors should consider funeral insurance for the following reasons:
- The application process is fast and simple. Applications can be done on the phone or online.
- Little or no medical examinations. Most policies won't have any medical examinations.
- Your choice of a cover amount. Choose a level of cover up to $30,000.
At what age will I need to take a medical test?
This will change with each funeral insurance policy. As a general rule of thumb, if you're over 70 then you will either have to submit your medical history or take a medical questionnaire. Make sure you check with your policy or speak to a qualified advisor about your policy.
The reason for taking out funeral insurance is so that your loved ones will not be burdened with the cost of your funeral. That means you will need to take out a benefit amount large enough to cover all likely expenses, which can include:
- A cemetery plot, coffin, gravestone, hearse and funeral director, if you plan to be buried
- A service, celebrant, urn and flowers if you plan to be cremated
- Venue hire and catering if there is to be a wake
- Newspaper notices, obituaries and a death certificate
- The added costs of cultural and religious requirements
There can be a whole raft of other expenses associated with a funeral, depending on how big it is and how elaborate you want it to be. So when considering funeral insurance, you would probably need a benefit amount of at least $4,000 to cover a basic cremation and anything up to $30,000 for a more elaborate service.
Easy application process
How can this help me?
|Funeral insurance can be obtained quickly and easily over the phone or online.|
|Unlike some other forms of insurance, funeral insurance is relatively easy for seniors to obtain. This is because there is no medical underwriting involved. Typically, the only health issue is whether you are a smoker or not (if you are, you will pay a higher premium). Apart from that, no medical history is required or medical assessment for pre-existing conditions.|
What does this mean?
|Benefit is generally paid out to your dependents within two business days of your passing. This can provide peace of mind for seniors worried about burdening their family with their funeral costs.|
|A lump sum payment is made to cover your final expenses.|
|You'll receive payment of the full benefit if you die due to an accident in the first year of holding your policy.|
|If you are diagnosed with a terminal illness after the first year of holding your policy you will receive a payout.|
*no medical examinations for policyholder within a set age. Policies may not cover over a certain age (e.g. 75 years old) or require a medical examination
Look out for these features in your policy if your after funeral insurance.
Features that protect seniors
What does this mean?
|Policies offer you a choice of levelled or stepped premiums. A levelled premium doesn't rise as you get older which can be useful as your income ceases with age.|
|Cover becomes free once you have paid the benefit amount or reach 90 years of age.|
|This ensures you're paid out the greater between your total premiums paid and your sum insured.|
|If you can't make premium payments, some policies offer a grace period (usually 3 months) to reinstate your policy. During this period you're still covered for accidental death.|
Other useful features
How can this help me?
|You're covered 24/7 and anywhere in the world.|
|Some policies will also provide you with a free will kit to help with your estate planning.|
Age restrictions usually apply when it comes to funeral insurance. The normal age range for eligibility is 45 to 70, but the maximum age varies with insurers and there are plans out there that cater for older seniors, although medical assessment may be required.
Can I get funeral insurance if I'm over 80?
After the age of 80, most insurers will either:
- Require you to take a medical examination or,
- Not provide cover
However, other options do exist for people who are 80 years or older and seeking funeral insurance.
Funeral insurance provider will sell funeral insurance to the elderly through:
- Day-time television advertising
- Cold calling over the phone
- Door to door sales
The problem with these policies
The main issues with buying funeral insurance from a television commercial or a sales person include:
- Ads can make funeral insurance sound simple. A 30 second ad isn't enough time to explain a complex product like funeral insurance properly and what you need for your personal situation.
- You might be rushed or manipulated into buying a bad policy. Ads and salesman on the phone will focus on you getting you to buy a policy, rather than explaining it's pros and cons.
- Your rights may not be explained to you. A sales person must tell you how long your cooling off period is.
If you have rushed into buying a policy or have been convinced to buy a policy without giving much thought to it, then you can still get your money back.
1. Ask for a refund
You can ask for a refund if you're still within the cooling off period of the policy. According to Australian Consumer Law, you're entitled to a 10 day cooling off period if you buy a policy from a salesman. Most funeral insurance policies will state a 30 day cooling off period.
2. Compare funeral insurance carefully
Funeral insurance is an important decision, and one that should be carefully considered by:
- Understanding what a good policy consists of
- Understanding the rip-off's and traps to avoid
- Comparing policies with an experienced advisor
If you are eligible for funeral insurance and decide it's the best option for you, the following are some potential pitfalls you need to be aware of the following.
Funeral insurance trap
How do I avoid this trap?
Other ways to cover your funeral expenses when funeral insurance is not available to you can include;
- Life insurance. This usually contains a funeral expenses benefit
- Superannuation. This also often contains funeral cover, although payment may not be as fast as with standalone funeral insurance
- Savings. Either a lump sum term deposit or regular payments into a savings account
- Funeral bond. There your money is invested by an insurance company or friendly society
- Prepaid funeral. Either a lump sum or regular payments to a funeral director
- Government assistance. If you are a veteran or pensioner, you may be eligible for financial assistance to help cover funeral expenses