As we journey through life, we are often confronted with challenging decisions regarding our financial future. One such decision that requires thoughtful consideration is planning for the inevitable – our final expenses.
While it may not be pleasant to think about, preparing for the end of life is an essential part of responsible financial planning. This is where Final Expense Insurance comes into play, offering a safety net to protect your loved ones from the burden of funeral costs and other end-of-life expenses.
Final Expense Insurance, otherwise known as Burial or Funeral Insurance, is designed to pay for the bills that your loved ones will be responsible for after your passing. These expenses typically include funeral and burial costs, but can also extend to medical bills, outstanding debts and legal fees.
The primary purpose of Final Expense insurance is to ease the financial strain on your family during an emotionally challenging time. It’s a great alternative for those who do not hold other life insurance coverage and wish to not see the financial burden of final expenses fall upon loved ones.
Most Final Expense insurance can be purchased as a guaranteed or simplified issue policy, your health will determine how benefits are paid and if there are any waiting periods to receive the full death benefit. Unfortunately, the older you are, the higher the cost of the premium, since the insurance company is taking on the risk.
Generally, final expense insurance is designed to closely match your anticipated end-of-life costs, with an average death benefit policy between $10-15K. The policy should match the cost of your funeral and any other costs associated with it. Reminder that you’ll only receive a $255 death benefit from social security. Veteran spouses are eligible for various death benefits depending on the circumstances at the time of death.
Today, a basic funeral can cost around $8,000. If you want upgrades, it can cost anywhere from $15,000 up. For example, a casket, headstone, funeral home, memorial service, transportation costs, etc. all add up and can leave a financial burden for your family to deal with. If you anticipate other costs like probate, household expenses (mortgage, utilities), or medical bills, you’ll need a higher-end death benefit.
Some may choose a death benefit of $8,000, while others might need $15,000 to cover any unforeseen expenses. Most Final Expense insurance plans max out at around $25,000, but please be aware there are plans with benefits as low as $3,000, which probably is not enough to cover most basic funerals.
Final Expense Insurance offers an affordable and accessible way to ensure that your loved ones are protected from the financial burden of your final expenses. By securing this type of coverage, you can find peace of mind, knowing that your family will have the support they need during a time of grief and loss.
Take the first step towards securing your family’s future by considering Final Expense Insurance as an essential component of your financial planning. Make sure to consult with a financial advisor or insurance professional to evaluate your options.
Is Final Expense Insurance Right for You?
Final Expense Insurance can be a suitable option for individuals who:
- Looking for a simple and affordable way to cover end-of-life expenses.
- Want to ensure their loved ones are not financially burdened by funeral and burial costs.
- Have been declined for traditional life insurance due to health concerns.
- Have a limited need for a large life insurance policy but still want to leave something behind for their family.