Funeral cover understably seems more relevant as you get older and the elderly, whether pensioners or not, will want to cater for the eventuality. Nobody wants to leave their family in financial distress upon their passing and a funeral can be an unexpected and at times unmanageable cost for any family. Fortunately funeral insurance plans are available for older people and pensioners can afford the cover even with a government pension.
Does Funeral Insurance Cover Pensioners?
Yes. Pensioners can sign up for funeral insurance cover. In fact it is one of the most common types of insurance policies that many seniors buy for themselves. Funeral insurers do not refuse cover based on how much you earn or whether you are still employed or retired. Therefore any person, even the elderly can join a funeral insurance plan whether they become part of a family funeral plan under their children or opt for their own cover.
However, insurers do have certain age-related criteria that is taken into consideration. This is irrespective of a senior person’s income level. Furthermore, there are waiting periods which may be more applicable to seniors starting funeral cover later in life since they are more likely to have chronic medical conditions. Nevertheless, this should not discourage seniors from signing up for funeral cover for themselves.
Maximum Age and Waiting Periods
Like any insurance policy, funeral cover has age restrictions. This can vary among insurers and it is therefore important to speak to the insurer directly. Most insurers will accept policyholders up to the age of 65 years. However, older people up to the age of 75 can still be covered as adult dependants on a family funeral plan under their children, grandchildren or younger spouse.
Waiting periods are in place for most insurance policies and for good reason. Most of the time this is a 12 to 24 month period. During this time the insurer will not pay for any claims although the policyholder is required to pay premiums. Waiting periods may be waived in the event of accidental death but with natural death or death due to a disease, there will be no payout.
A reputable insurer will not offer funeral cover with no waiting period. These waiting periods are intended to protect all policyholders. It prevents unscrupulous consumers from only signing up for cover when they need it. This type of behaviour can drain the finances of the insurer and loyal longstanding policyholders may be affected. Waiting periods are not a problem if a person signs up early for cover rather than waiting till they need to claim.
Cost of Funeral Cover for Seniors
The cost of funeral cover can be higher when signing up later in life. Insurers consider many factors in the risk profile of a policyholder. The elderly are naturally at a greater disadvantage as they are more likely to pass away sooner and suffer with serious medical ailments. This often drives up the cost of funeral cover. Therefoe a senior citizen tends to pay many times more in premiums than a young and healthy adult who is signing up for cover.
Pensioners therefore need to be cautious about the cost of cover. As most pensioners are surviving on a limited income, an expensive funeral plan can have a significant on the monthly budget. Sometimes it may be more cost effective to join a family funeral plan under a child or grandchild’s policy. Additional family members are covered at a flat rate but this can vary according to different insurers and plans.