Final expense insurance, also known as burial insurance, provides your loved ones with peace of mind after your death. Money is paid to your beneficiary that can be used to pay for funeral expenses or whatever needs arise.
When we die, there are many costs that arise during a particularly difficult time for your loved ones. Things like medical bills and funeral expenses further complicate a trying time for those closest to you. According to the National Funeral Directors Association, the median total of burial services, the funeral, and the vault is $9,135. And it isn’t much cheaper for cremation, which costed $5,150 in 2019.
Burial insurance is usually purchased by anyone 50 and older looking to take care of their burial and funeral expenses for their loved ones. This way the family can focus on overcoming the loss of someone special instead of worrying about funeral expenses and money issues.
It is wise to assume approximately $10,000 in funeral expenses when you pass away. While this amount can cover your basic expenses, there are other costs that need consideration. Will you want catering offered at the post-funeral function? Will you want your ashes scattered abroad in a special spot? Do you have any other leftover debts? It is unrealistic to expect Social Security to pay for these expenses considering the lump sum payment is only $255.
But burial insurance can fill this gap and cover the financial aspects for your loved ones after you expire.
The cost depends on your age, where you live, and your health. Monthly or annual premium payment options are available for select final expense insurance policies. And premiums remain fixed, and the death benefit is paid as long as payments are up to date.
The amount of coverage available for final expense insurance depends on your age and health. Coverage available ranges from as little as $1,000 to as much as $50,000.
Everyone with worries about paying for their funeral expenses can take advantage of the benefits offered by burial insurance. It is never too early to prepare for one’s passing. And the openness of discussing with loved ones your final expense insurance policy can eliminate a lot of the uncertainty associated with the burial and grieving processes.
So, get started today on setting up your loved ones for that time that lies ahead when you are no longer with them.