Burial Insurance In Texas: Comprehensive Guide 2021
Burial insurance in Texas is the same as in other states. Things are slightly different in Texas in their funeral laws, which we will get to later in this article. Texas is known and loved for its sunny landscape, cheerful people, and plenty of recreational options.
These reasons are why more and more people are opting to live in Texas compared to the other American states. From Houston, Dallas, San Antonio, and Fort Worth to El Paso, Arlington, and Austin, Texas suits the lifestyle of everyone.
While the Lone Star state has much to offer regarding education, employment opportunities, and health programs, an often-overlooked parameter is an expense associated with end-of-life.
Quite often, the deceased’s family is left with a pile of bills to pay in addition to dealing with the grief of the passing of a loved one.
But how does one tackle such a tricky situation, and what can be done to prevent this from happening? Well, that’s where a funeral insurance plan comes in.
An expansive funeral insurance plan will allow you to say your last goodbyes in peace without having to worry about the debts left behind.
Texas Funeral Insurance
Texas funeral insurance is in many ways similar to that of the other states. While the basics are the same, Texas burial insurance may differ slightly because of the state’s laws.
Burial insurance plans, what they do, and how to buy one can be a tricky process—knowing which plan is suitable for your needs and what you can fit into your budget.
This article will be diving deep into Texas burial insurance and explain everything you should know about it. So let’s get started!
What Is Burial Insurance?
Burial insurance, also often referred to as funeral insurance or final expense life insurance, is a type of whole life insurance policy.
The whole life insurance policy is the one that provides permanent death benefit coverage for the life of the person insured. Full life insurance is, in turn, a type of permanent life insurance.
Like other whole life insurance policies, burial insurance comes with three long-term benefits. These include:
Texas funeral insurance comes with a coverage lock. This feature means that once the policy is purchased, the coverage will never change.
Coverage lock is a critical feature that helps immensely when planning a funeral and considering all the expenses that come with it. As long as you keep paying the monthly premiums, the death benefit will be granted to the listed beneficiaries.
Another essential feature of Texas final expense insurance is that the price of premiums, or the amount you’re supposed to pay every month, is fixed.
Unlike the AARP Final Expense Insurance, which increases in price as you get older, burial insurance premiums remain the same throughout your life.
This aspect is essential for individuals, especially seniors, who are on a fixed monthly income and cannot afford to pay more money over time.
Building Cash Value
A burial insurance policy builds cash value over the period that it is paid.
Every month, when the payment is made, a portion of it goes to the cash value component, which increases over time. The policyholder is allowed to borrow from it if and when they like.
How Do Burial And Whole Life Insurance Differ?
As mentioned earlier, burial insurance or final expense life insurance is a subtype of the whole life insurance policy. However, certain perks can be enjoyed by those opting for Texas Burial insurance. These include:
Simplified Issue Underwriting
The simplified issue underwriting means there is no prerequisite medical exam that the policyholder needs to undergo to be eligible for burial insurance. Once you’ve decided to purchase it, there is no reason to delay it, and you can have your policy active in days instead of weeks.
Lower Policy Amounts
Whole life insurance policies often have a more significant amount to be paid as death benefits, so their monthly premiums are much higher.
However, unlike whole life insurance, Texas burial insurance policies have lower face amounts, and hence the premiums per month are also much lower. So you get benefits similar to those of a whole life insurance plan by paying significantly less.
What Can Burial Insurance Payout Be Used For?
Like life insurance, the laws of the state regulate funeral insurance.
While there may be rules on paying the premiums, how much payout the beneficiary is entitled to, and other aspects of getting the policy, no such laws exist regarding where the money should be spent.
As the beneficiary, it is up to them to spend the money received as the death benefit.
However, the standard expenses to be covered by beneficiaries include funeral costs, any debts left behind by the deceased, hospital bills associated with illness, legal fees, charity donations, and leaving an inheritance.
Burial Insurance in Texas Premiums.
Premiums are the monthly amount that is to be paid per month after purchasing any insurance policy. Burial insurance premiums, like all others, depending on the insurance company and the amount of payout. In addition to that, several other factors also affect the premiums.
The most important factor when considering life insurance is age. As your age increases, so do the monthly premiums. In addition to that, tobacco use, gender, weight, occupation, recreation, and health status are other factors that may affect your end-of-life insurance, depending on your insurance provider.
For a $10,000 death benefit, the insurance premiums for males and females aged 45 range from $25 to $45. As the age increases, so do the insurance premiums, with the oldest being at age 80 to 85 and premiums ranging from approximately $150 to $300.
The premiums are usually higher for men than women because of their increased risk of cardiovascular disease, smoking habits, and having dangerous hobbies.
What Will Be Your Premium Price?
As mentioned above, insurance premiums are influenced by several factors. Since this is burial insurance, its premiums are affected by factors that influence health and longevity. Characteristics that may negatively impact your health or lifestyle will increase your premiums. These include:
The state of your health is an essential indicator in determining your premiums for Texas burial insurance. The healthier you are, the lower your premiums will be. Health also includes the use of tobacco or recreational drugs, incorporation of exercise in the daily routine and diet.
Age is another relevant denominator when determining the monthly premiums. The younger a person is, the more they are to have longer to live.
Monthly premiums are lower for young people than old because they will be paying these premiums for a longer time. Most insurance providers cover individuals from 80 to 85 years of age, with a select few also allowing to get plans for 90-year-olds. It is important to note that a policy never expires once it is secured, it is just the age at the time of application that has limits.
While it may seem surprising, men are charged more per month for life insurance than women. This discrimination is because women are less likely to be involved in accidents, drug abuse, smoking, hazardous recreational activities, and workplace catastrophes.
On average, women live four years longer than men. Hence, premiums for women are lower.
The coverage amount is also a factor that will influence your monthly premiums.
If you’re opting for a higher payout at the end, the monthly premiums are more likely to be higher. The lower your death benefit, the lower your monthly payment.
Finding The Right Burial Insurance
Numerous insurance companies offer end-of-life insurance. Their premiums, factors influencing premiums, rates, fine print, and many other factors differ.
So how does one find the insurance company as well as the policy that suits their needs? Well, you get in touch with a well-established independent agent.
An independent agent can represent as many Texas burial insurance companies as they want, which means they are the perfect people to contact if you need a burial insurance plan.
They can help you select the insurance company with a plan that will be the most suitable for your health and lifestyle needs. Licensed agents can help you understand and obtain the funeral insurance plan of your choice.
Waiting Periods And How To Avoid Them
When talking about insurance, the term ‘waiting period’ is thrown around quite a lot. While it is a commonly used term, many people purchasing Texas burial insurance policies do not know what it entails.
A waiting period is a time when the insurance company partially covers the policyholder. This situation means if you’re a high-risk case buying a burial insurance policy, the carrier will have a waiting period to decrease their financial liability.
Most insurance companies have a maximum of two years waiting time from the date the policy is purchased.
If the insured dies during the waiting period, the beneficiary will receive a predetermined part of the burial insurance. However, if the policyholder passes away after the waiting period is over, the beneficiary is entitled to the total payout.
You can contact your local independent insurance agents who work with multiple companies. They will be able to tell you which companies have the shortest waiting periods, which companies might waive your waiting period, or which company is your best bet when it comes to minimum waiting periods.
Purchasing Policy For Loved Ones In Texas From Outside Texas
An often asked question is; can we purchase Texas burial insurance for a loved one living in texas while the buyer is out of state? The answer to that is yes, you can. However, the one for whom the policy is being bought will have to be involved in the application process.
This inclusion is necessary because they will need to give their consent and answer specific questions related to health and lifestyle before a policy can be bought in their name.
Whether it’s your parents, siblings, spouse, or children, the policyholder needs to be aware and involved in the application process so the insurance company can provide you with a policy while being aware of all the facts and with consent from the holder.
How To Choose The Best Burial Insurance In Texas?
Burial insurance plans differ from person to person and company to company.
While one plan with an insurance provider may fit you best, the same plan may not be so perfect for your sibling or spouse. Not only that, every insurance company accepts and regents different preexisting conditions depending on their underwriting standards.
To purchase the best final expense policy, it is essential to do your research and, even better, to involve an independent agent in the process.
They know the intricacies of all insurance companies they represent, the diseases and disorders they accept, and how their premiums fluctuate with age and health. Numerous insurance companies claim to be the best in business.
However, once you find a plan that suits your needs and is accepting of your health conditions, the following factors to take into account are:
The first and foremost point to check with your insurance provider is how much their policies cost for what amount of payout.
Many insurance companies may seem to have lower premiums, but their payout in case of the policyholder’s death is even less. On the other hand, some companies charge exorbitant sums per month, and the death benefits paid are not as high.
So it is crucial to choose a policy and company that maintains a good balance between the monthly premiums and the death benefit.
Short Waiting Period
As explained above, waiting periods come with most insurance policies. Their timing may range from a few months to 2 years. However, you can always opt for insurance companies that offer the shortest waiting period.
Not only that, some companies allow you to skip the waiting period entirely. But weighing the pros and cons of such companies is also necessary. Shorter waiting periods and immediate coverage mean you can protect yourself and your family sooner.
High Financial Rating
Financial rating is an index that keeps track of how well insurance companies are treating their clients. The happier and more satisfied the customers, the higher the rating.
The client’s will, of course, be satisfied when the insurance company makes good on its policies and pays the due benefits to the beneficiaries. Make sure to choose AM Best companies with B+ ratings or better when buying a Texas burial insurance plan.
Funeral Stats in Texas
The average lifespan of males is 76 years and females 81 years. Over 50% of Texans opted for cremation in 2020, and this number is expected to rise over 60% by 2030.
Many people are still choosing traditional burial, but the number is falling. Part of the reason for this is the high costs that come with burial as compared to cremation. When looking to bury in Houston or Midlands, the prices may rise to as high as $8,000!
Both cremation and burial costs depend on where you live. According to Texan law, cremation of a dead body cannot occur within 48 hours after death unless expressly advised. After the process, the remains may be scattered on private property, kept at home, or scattered in waterways or public lands.
Burial costs range from approximately $7,000 in El Paso to $8,500 in Houston. Cremation costs are slightly lower, ranging from $5,700 in El Paso to almost $7,000 in Midland. It is important to note that these estimates do not include the headstone, monument, cemetery property, columbarium, etc.
Causes of Death in Texas
Like the rest of the American states, Texas is not much different regarding causes of death. From heart disease to cancers, health conditions inflicting Texans are similar to the rest of the country. The top ten causes of death in Texas include:
- Heart Disease
- Chronic Lower Respiratory Disease
- Alzheimer’s Disease
- Kidney Disease
- Chronic Liver Disease/Cirrhosis
The risk of suffering from these diseases increases with age. Not only that, once a person is diagnosed with a debilitating or terminal illness, many insurance companies do not allow them to purchase policies.
However, we aim to provide the best coverage possible that can work with any health condition. Whether it’s heart disease, cancer, Alzheimer’s, or stroke, we can guide you towards the insurance companies that offer programs best suited to your needs.
What Is The Free Look Period?
Free Look period refers to the period after you begin a life insurance policy but for any reason have a change of mind, you are entitled to a full refund of any premiums paid.
No insurance company can force you to continue paying your premiums or refuse a refund if you discontinue the service within the free look period. While many states have a free look period of one month, Texas has a free look period of 15 calendar days.
During these 15 days, you are entitled to a return of any money paid in premiums. However, you will not be refunded the money paid in premiums if you drop the policy after the free look period.
Finding The Best Burial Insurance Company In Texas
With so many options available, choosing the right insurance company can be a challenging task.
This is especially true if you have any preexisting health conditions, and the underwriting of many companies can disqualify you from even being eligible for purchasing a particular policy.
So how does one find an insurance company suited to your needs, is affordable and offers an approach that will work with your lifestyle?
Well, it is always good to seek the help of professionals. Independent agents have an array of companies that they work with, which will help you find the best company for you.
The best insurance is one that is cost-effective, covers you the soonest (with the shortest waiting period), and is provided by a financially sound insurance company. We ensure our clients come first.
Your needs and wants are always prioritized, and we aim to find you policies that are the perfect fit for you and your health. So you can have a policy that will cover you well and soon!
With no additional fees or increased monthly premiums, our teams are available to assist you in finding the best insurance company for you.
Instead of spending weeks and even months contacting tens of agencies trying to find quotes, understanding their underwriting, and comparing policies, one call or visit us, and you can save yourself all the hassle.
Our teams analyze your health and needs, assess your history, and find companies that best fit you. Out of these, the quotes are then compared, and you can select the company most suitable for your budget and needs.
Why Choose Burial Insurance?
Many people wonder what the benefits of choosing burial insurance over whole life insurance are. To put it simply, burial insurance offers cheaper policies with more flexible underwriting.
Made specifically for end-of-life expenses, burial insurance provides you peace of mind that your family as loved ones will not be left to pay the debts, hospital bills, or funeral costs after you pass away.
Some advantages of burial insurance over other policies are:
- The options for face value can go very low. You can opt for policies with a cash payout of as low as $1000.
- The policy does not expire no matter how long you live.
- Death benefits cannot decrease for any reason.
- Monthly premiums remain fixed throughout the life of the policyholder.
- The underwriting is not complicated or problematic. Almost everyone can qualify, despite preexisting health conditions.
- The waiting periods are short, and many people can qualify for day one coverage despite serious diseases.
Once you weigh the pros and cons of burial insurance with the other types, you will realize this is the most flexible insurance if you want to secure the future of your loved ones after your death.
Types Of Burial Insurance Plans
There are four different types of burial insurance plans. You can choose any based on your eligibility. The four types are:
If you have a limited medical history, the Level burial insurance plan is for you.
These plans also skip the waiting period and offer immediate coverage at the lowest monthly premiums. The level final expense insurance is the only one without a waiting period.
Graded burial insurance plans have a lenient underwriting process, which is why these plans implement a two-year waiting period during which the policyholder’s death will only entitle you to a portion of coverage.
These plans are suitable for people with previous medical concerns and upcoming surgeries. A percentage of the full death benefit is payable within the first year and increases in the second year.
The policyholder is entitled to the full amount after the second year.
The waiting period is of two years, and the prices are higher in modified plans. If you only qualify for modified plans, it is better to opt for a highly rated guaranteed issue product that asks no medical questions and has lower premiums.
Guaranteed Issue Plans
Guaranteed issue plans approve almost all the applicants.
For people suffering from chronic diseases or terminal illnesses, the graded issue plan is the best choice. Not only that, but it is also a good option for someone who is unwilling to answer health-related questions.
Funeral laws are the fundamental laws laid by the federal government which dictates the basic principles surrounding post-death rituals.
Whether you opt for burial or cremation services, these rules enforced by the FTC or Federal Trade Commission must be followed. They include:
- Funeral homes are required to quote prices of products and services over the phone if need be. In-person, funeral homes are required to produce price lists for general expenses surrounding death rites, a casket price list, and a burial container price list (if applicable).
- Before signing a contract, the funeral home must also provide a list of charges and estimates.
- FTC laws do not govern payment options, cost modifications, transfers, cancellations, or administrative fees.
A death certificate must be filed with the local registrar in Texas, which is then obtained by the funeral home or mortuary.
For a death occurring in the past 25 years, the deceased’s immediate family can only request a death certificate.
For anyone else requesting the death certificate, the individual needs to show documentary proof of having a vested interest in the death certificate, such as being the beneficiary of the burial insurance.
If the funeral or cremation occurs after 24 hours, the body needs to be refrigerated or embalmed.
While there is no rule for burial only taking place with caskets, it is better to check with your local cemetery to know what kind of containers they accept.
Costs And Price Comparisons.
According to the National Funeral Directors Association or NFDA, the median price of a funeral with a casket is around $8,755.
It is important to note that this does not include the headstone price, cemetery plot, transportation, floral arrangements, etc. Prices differ with the city and service selected.
Cremation is slightly less expensive than burial, and the overall cost may approach around $10,000.
The following chart draws a comparison between burial and cremation in different cities of the state of Texas:
Burial Insurance in Texas.
The death of a loved one is one of the most emotionally taxing ordeals anyone can go through.
While you’re busy mourning the loss of a family member and consoling relatives, financial burdens should be the last thing on your mind.
While that is true, funeral services can cost a pretty penny, and even if you opt for a relatively simple affair, the total cost is likely to be around $7,000 to $10,000.
This is a significant amount, and not many people have this much money available at hand. Even if you do, you were likely saving that money for another expense.
On top of that, people who pass away after long-term battles with the illness have a massive hospital bill produced after the person’s death.
Most of the time, it is not possible for the family members to take care of all these expenses, and that is if the deceased did not leave behind any debts or loans of their own.
Such situations can be incredibly challenging. But you can save your loved ones from going through it by purchasing a burial insurance plan.
Burial insurance plans pay the beneficiaries of the policyholder a fixed amount in death benefit after the passing of the policyholder.
The beneficiaries can then use this money to cover end-of-life expenses, hospital bills, any leftover debts, and funeral costs so they can mourn in peace without having to worry about the finances.
Why Choose Us?
We are an independent insurance agency that represents the best companies in the insurance business. Being an independent company, we are accountable to no one to promote their corporation.
This autonomy ensures that the client is always the top priority. Choosing the right company and guiding you to find the right policy is our aim. With so many different insurance companies working with our agency, the selection is wide.
No matter where you are in Texas, we will provide you with the best insurance companies that are financially stable and offer the most budget-friendly and accessible burial insurance plans.
By contacting the professionals at our company and providing your information and requirements for burial insurance plans, you can skip all the hassle that comes with contacting multiple companies, getting quotes, and comparing underwritings.
You can quickly get the companies that offer final expense insurance within your budget range and which also accept your preexisting health conditions.
Since we specialize in burial insurance, they can shop the market for you to get the best deal possible, depending on your individual circumstances.
Some frequently asked questions about burial insurance in Texas include:
Q: What amounts of coverage are available with final expense insurance?
A: With burial or final expense insurance, you can opt for death benefits ranging from around $3,000 to $25,000. For more payout in case of policyholders’ death, you can always buy policies from more than one insurance company.
Q: What are the age requirements to be eligible for burial insurance?
A: Minimum and maximum ages to get burial insurance differs from one company to another. Most companies offer insurance policies for ages from 40 or 45 to 75; however, the upper limit maybe 80 or even 85 occasionally.
Q: Can one purchase burial insurance for a spouse?
A: Yes, you can purchase burial insurance for your spouse when you’re married since you have an insurable interest in them.
Q: What if I change my mind?
A: You can change your mind after purchasing the insurance at any time.no company can force you to carry out the policy until your death.
However, you are only entitled to a refund on any premiums paid if you decide not to follow the procedure within the free look period. The free look period ranges from 15 to 60 calendar days, depending on the state and the insurance company.
How to find the Best Burial Insurance in Texas
We have several insurance agencies at our disposal. By hiring our team of experts, we can tell you which insurance company will offer you the best policy or which policy is the most suitable for you, depending on your needs.
Not only that, when you purchase burial insurance in Texas, you can skip the annoying part where you’re questioned about your health conditions.
If you fall in the age eligibility criteria, you can easily choose a policy that best suits your needs and budget and offers a payout with a minimum waiting period.
Not only that, we provide instant quotes based on very little information so you can have an idea bout the costs of burial insurance policies.
For an amount as small as $30 a month, you can get a funeral expense insurance policy that will provide you with peace of mind that your family will not be facing a sudden financial burden in case of your death.
Even for death benefits as high as $50,000, the health questions to be answered are few, and no medical exam is necessary. The best part? The monthly premiums will stay the same throughout the lifetime of the policyholder.
We represent over 15 insurance companies, so our clients can pick their company and policy. Like all other markets, the more insurance companies there are the more competition, which in turn creates a contest for clients and provides more power and better policies to the consumer.
Additionally, since we work with multiple companies, our interest can not lie with any one corporation, which means our priority will always be you!
By considering all the rates and options available, you will be able to make an informed decision about the policy you want to purchase for yourself or your loved one.
Do you want one with lower monthly premiums, so it is budget-friendly in the long run, or do you want to opt for the slightly pricier option for the added benefits?
Is the underwriting too complicated for you, or do you want a policy with a shorter waiting period? Don’t worry; all the alternatives will be available to you to choose one after considering it from all aspects.
How we can Help You
Experts at our company are always available to assist you in any way you need.
You can ask about all the intricacies of the policies, learn about the underwriting, explore your choices, and inquire about the policies that will suit you best depending on your age, health conditions, budget, and gender.
We will not pressure you into making a decision. Instead, you can take your time and understand each policy individually before choosing one.
The best part? We offer a free quote for all your burial insurance needs in Texas. So why wait? Grab your phone and get a free quote now so you can sleep better at night, knowing your loved ones will be cared for even if you’re not there!