Did you know that the average funeral cost is about $7,700? Mark you; it may even get higher if you have to factor in things like a burial plot, a casket, and a headstone. But, what do you do when you cannot raise such an amount to bury your grandparent?
It would be best if you started considering help, and it comes in the form of life insurance. So, yes, you can get life insurance for your grandpa or grandma, but they’ve to give their consent. Whether your old folks are 70 or 80, it’s never too late to buy life insurance for them and be in a position to give them a dignified sendoff.
Interestingly, your grandparents may qualify for Guaranteed Acceptance plans. Such plans do not require them to undergo any medical test, and thus there is no chance for their application to be turned down. But still, it is not just for the burial expenses that you should get life insurance for your grandparents. Let’s look at the principal reasons for considering this coverage.
According to Over50lifeinsure.com, it would help if you bought life insurance for your grandpa or grandma or both for the following reasons:
- Pay for the final expenses – From a preferred funeral parlor to a burial plot, you can do it all with the right life insurance plan. It also caters for the funeral service, headstone, and casket or urn.
- Clear existing hospital bills – Life insurance also comes handy to clear standing hospital bills incurred by the departed grandparent.
- Cover standing debts – By procuring life insurance for your grandparents, you have a means of paying off debts left behind by them, such as auto loans, mortgage, and credit card debt.
- Care for surviving grandparent – If you have both parents and one happens to pass away, the surviving can receive a lump sum from the insurance company as a replacement for lost income. It protects the remaining widow or widower from dramatically altering their way of life.
On average, you may get a death benefit amounting to $3,000-$25,000 for your grandparent, depending on the life insurance plan and the policy provider. Here are some popular policies to consider:
If your grandparent is between 70 and 80 years, you can choose to pay a one-payment to cover for the funeral expenses. We call such as a plan a prepaid life insurance policy, and it costs $5,000-$10,000.
From the name, this policy is specifically for the burial, and it caters to funeral-related expenses like burial costs, cremation costs, and hospital costs. In addition to this, burial insurance can pay off debts left by your grandparents and may replace lost income. On average, the burial insurance payout is about $10,000-$15,000.
Burial insurance exists in three major types:
- Level benefit – Payments are straightaway after death.
- Graded benefit – Payments are made for several years after death.
- Modified benefit – A specific amount is paid as a death benefit, and the figure increases in subsequent years.
Term life insurance refers to insurance coverage for a specified period. In this case, the policy has an expiry, but you can renew it. Premiums for term life insurance are generally low.
Unlike term life insurance, permanent life insurance has no expiry, and as a result, the premiums are higher. It combines a savings plan and death benefits.
This policy provides death benefits after your second grandparent dies. Thus, it applies when you have both grandparents.
Our grandparents deserve the best sendoff, and life insurance is vital in realizing it. What’s more, it also caters for standing debts and provides financial backing for the surviving grandparent. So, please make plans to buy the ideal life insurance using our guide above.