Why You Need Final Expense Insurance
Death. No one really likes to talk about it. We all know it is going to happen so it should be a topic that can be discussed, but I guess the fact of mortality is just too much sometimes. Having the conversation is important, not only for you but for your loved ones who will have to take care of everything when you do pass away. Did you know that the average funeral costs over $7,000? Let’s say you don’t even have a funeral and you just want to be cremated. That is still going to run your family about $3,000 depending on what area you live in. That is a conservative number. You will also have to pay for the box they put you in before the cremation, crazy right? This is where final expense insurance comes in.
I am sure that you don’t want your family to worry about how they are going to pay for your final expenses. They will be heartbroken upon your passing, so money is the last thing they need to worry about. Final expense insurance can help them alleviate the burden of your final debts and memorial services.
It is an insurance policy that is paid upon your death to a beneficiary who you will choose. That beneficiary then uses it to pay for your final resting place, cremation, burial, or whatever your final wishes are. Your final wishes should be discussed with your beneficiary as well, so they know what you want.
The nice thing about final expense insurance is there can also be enough to pay for extra leftover debts from you like credit cards, loans, and medical bills. The money given to the beneficiary is also tax-free. The premiums are affordable for final expense insurance. This is because, compared to other life insurance policies like whole or term, the final expense is designed to have a lower limit to cover your burial or memorial expenses.
Maybe you are thinking that you get an amount from social security upon your death. Did you know this amount is only $255? That probably won’t even cover a down payment to the funeral home or crematory. Another option is to pre-pay for your funeral. While this could be an option, there are some disadvantages. The funeral home could close, you could move to a different area which could cause different pricing, or you could want to change your final plans.
No matter what you choose, funeral pre-payment, life insurance, or final expense insurance, the end result is the same. You want to provide your family with something to help carry out your final wishes and final resting place. These days it is not as common as it once was for people to have thousands of dollars in a savings account. Final expense insurance helps your family pay for your burial or funeral without having to worry about where the money is coming from.