Read this before purchasing burial insurance in Massachusetts
Here is what you should know before applying for burial insurance in Massachusetts
- Among all New England states, MA has the fewest options available
- Insurance companies do not offer disability riders in MA.
- While you can purchase coverage if you’re 90 and under in other states, companies in MA only go up to age 85.
- Despite the few options, we can almost always find a company that will work with your specific health conditions.
At Boston Life Group, we work with clients all over New England, and MA is by far the state with the least options. Smaller Regional life insurance companies probably do not have enough resources to get past the red tape in MA. However we must say that we have little to no trouble finding life insurance coverage for clients with the toughest conditions. There are enough companies out there that will offer coverage for chronic conditions such as: Daibetes (even with insulin), History of Cancer, COPD, Heart Attack, Stroke etc…
What is Burial Insurance?
Burial insurance is a type of small whole life insurance policy that requires no exam.
It is designed to mainly cover funeral expenses and other smaller expenses revolving around your death.
The maiximum death benefit is typically around $50,000.
It is also known among insurance professionals as Final Expense Insurance.
Another feature of Final Expense insurance is that it’s typically much easier to qualify for compared to traditional life insurance.
Who is Burial Insurance for?
Burial Insurance is for someone who is looking to cover their funerals and other related expenses.
Typically, this person does not have enough asset in the bank or a retirement account that would cover his/her expenses
The average Burial insurance seeker is also over 60 years old and not in the best health.
Since older folks tend to have a more health issues, it eliminates the hassle of dealing with potential health findings during the exam process.
Who it’s not for
Younger people - Younger people seeking life insurance typically have more affordable options.
Of course, there is the term option which is the cheapest form of life insurance.
Costs are low, and it gives the younger adult time to accumulate and save cash before the term runs out.
The super Healthy - Life insurance companies has special preferred rates for healthy people. Those rates are not available in burial insurance.
Because insurance companies are more lenient with burial insurance, they tend to charge more to hedge their bets.
However healthy candidates, have to go through a full underwriting process to ensure that they are as healthy as they seem to be.
People with substantial lifetime savings. - Since the max death benefit tend to be low for burial insurance, anyone with enough in the bank to cover their final expenses do not need to purchase burial insurance.
The three types of Burial Insurance
Standard Issue - This is what most people of average and even below average health would qualify for.
With this type of Burial insurance, the premiums are level and more affordable, the full death benefit gets paid regardless of when you die.
Graded Benefit - This is for candidates who have serious but not yet deadly conditions.
The death benefit starts from the 1st Feeday of coverage but it’s handed out in a tiered system.
For example, the insurance company might pay 20% if you pass away the first year, 50% if it’s the 2nd year, and 100%% after a waiting period of 3 years.
Guarantee Issue - This is the type of insurance that anyone can qualify for regardless of your health.
This is reserved for people with chronic conditions since healthier folks have other options.
Candidates who are currently receiving treatment for cancer, AIDS, or kidney failure will fall in this category.
In this instance the death benefit won’t be paid in full until after year 2. Before year 2 , the insured is only able to receive a refund of their premium payments + interest..
Is my health condition covered?
So you have a serious health condition and think you might not qualify for standard coverage. Here are the some questions you should ask yourself
Is my disease stabilized?
If so, has it been stabilized for more than 2 years?
Some conditions don’t fall into that category and carriers have their own definitions of stabilized, but this is general guide to have an idea of whether or not you will qualify.
For instance, if you were just hospitalized due to your conditions 60 days ago, there is high probability that you might get declined.
However, if 2 years later, you decide to seek life insurance coverage, you will most likely qualify for at least one of the many burial insurance companies out there. It is therefore crucial to work with an independent agency who can do the shopping for you amongst many different insurance companies.
The insurance company that will qualify a diabetic taking insulin is not necessarily the same company who will accept a person suffering from COPD or chronic bronchitis.
How much does Burial Insurance Cost?
Below is a chart of what a female will pay for a standard level burial insurance in Massachusetts. The chart below assumes that this person would qualify for a standard level death benefit.
$75 - 90
$145 - 200
As you can see the older you get, the more expensive life insurance gets. Also keep in mind, males pay more for life insurance. Since men are more likely to die earlier, their insurance premiums will naturally be higher.
Interested to know how much your life insurance will cost? Fill out the quote form on this page.