Burial Insurance is among the most popular whole life insurance policies with assured death benefits. These benefits can range somewhere between 5,000 and $25,000 or more depending on various factors. Many carriers offer burial insurance packages. You can get in touch with a broker to get a burial insurance AARP quote. But how exactly are these quotes calculated?
The Cost of the Burial Insurance Package
The first factor affecting the burial insurance quote is the package itself. If the package has a higher face value, you’re likely to get a higher quote. Conversely, if it’s of lower face value, then the quote you’ll receive is lower. The majority of the burial insurance packages offer a face value of $2000 to $5000.
So when you die, your family or the beneficiary will receive that amount for funeral arrangements. The monthly quote, depending on other factors mentioned below, will be around $50 to $70. You’ll be paying this amount for a certain number of months. As a rule, the higher coverage you need, the more expensive the package will be.
The second factor affecting the burial insurance quotes is age. Every burial insurance carrier has set a particular price correlating to a specific age or age band. For someone between the age bands of 50 to 55, the company will have a specific quote. While for another in the age band of 60 to 65, they’ll have a different quote. This varies from carrier to carrier, and the insurance agent usually has no role to play.
You need to know that the earlier you opt for a burial insurance package, the cheaper the quote. The later you apply in your life, the more expensive the quote is going to be. This is because the carrier is taking more risk in covering you when you’re retired and in your final years. Also, when you’re in your 80s, you’ll have less time to pay the premiums than if you were in your 50s. So, age also matters.
If you aren’t aware, then the insurance premium for men and women are different. This is the case all around the world and not only in the US. Few reports suggest females pay more for the same insurance package that men pay for. In contrast, others vary and claim that it’s men who pay more. Debates will continue on this topic, but gender does affect the burial insurance quote you receive.
If you’re a female, expect to pay a few percentages more than men for the same burial insurance AARP package. While this might not be a direct factor, but a factor that is influenced by other factors mentioned here. A discussion with a burial insurance agent will give you better clarity on this.
Most insurance companies will have different rates for tobacco and non-tobacco users. This is true for not just burial insurance, but for term insurance and other types of insurance. Since carriers are undertaking more risk in covering you, they’ll charge more for the service. So if you’re a tobacco user, then expect a higher price quote on burial insurance from AARP or other carriers. Cigars, e-cigars, pipe smoking, and alcohol consumption might also affect the quotation.
Your overall current health will also affect the price quotation for burial insurance. If you have a pre-existing health-related condition or are severely ill, you’re likely to receive a higher quote. If you’re healthy and doing fine, it’s going to be lower. Medical conditions are not strictly looked at by insurance carriers.
Therefore, the acceptance range for burial insurance packages is high, but at a higher cost for people with deteriorating health.
As already mentioned, if you have a pre-existing condition, then the carrier is likely going to offer a higher quote. This is because it is taking higher risks in covering you. That’s why younger patients with little to no medical conditions can avail of lower premiums.
The Insurance Agent
Lastly, it’s the insurance agent you deal with that determines the burial insurance price quote. If the broker has running offers from the carrier, it may provide you with a lower premium package. If he/she has a strategic partnership with the carrier to run offers in the area, you might avail of the same. So it’s important to work with the right broker.
Gary P. Cubeta is a registered insurance agent who runs the website Insurance For Final Expense. He reviews various insurance packages from different carriers on the website. You can read those reviews and get a better idea of which one to purchase for your needs.