Why Do I Need Final Expense Insurance?
End of life arrangements come with a lot of existential thoughts and emotions that can make discussing them difficult for anyone. You might be feeling confused and anxious, which is completely normal and understandable. This is a part of life that everyone experiences, and for most people there is a lot of meaning surrounding it. It is for this reason that making sure you have all of your affairs in order is absolutely crucial, both for you and your loved ones.
What Is Final Expense Insurance?
Final expense insurance ensures that costs such as funeral expenses and unpaid bills are paid for after your passing. This is a different type of coverage than a life insurance policy. Final expense insurance specifically covers any and all costs related to final affairs, such as unpaid bills, funeral and burial costs. This is also why it’s sometimes referred to as funeral insurance.
It’s important to note these differences, because while life insurance can top over a million dollars, funeral insurance tends to stay at or below $20,000… So perhaps hold off on hiring Beyonce to sing at your service unless you have more funding.
Why Is It Important?
Everyone knows costs for big affairs can spiral out of control… just ask anyone who has had a wedding. A typical funeral can cost an average of around $10,000, and much like with weddings, the costs are continuing to skyrocket. These costs don’t take into account things like:
- A post-ceremony reception,
- Outstanding bills,
- End of life care not covered by health insurance
or anything that happens at the cemetery (should that arrangement apply), such as:
- Grave marker
- transportation to the site
… all of which can easily add tens of thousands more dollars to the bill.
These may seem like negligible things that you don’t need. But remember, a funeral and burial isn’t just for you. It’s also for your loved ones to be able to celebrate your life and find comfort as well. Even if you’ve all decided to keep to the bare minimum, costs can sneak up where you weren’t expecting them. Relying on a Social Security payout may not be wise either; the average amount for that tends to hover around $225.
Aside from ceremonial costs, final expense insurance can be used to help cover any accumulated debts from your life (many people assume these go away once someone passes, but the ugly truth is that many of them don’t, such as mortgages, student loans, and any end-of-life medical care not covered by Medicare). If there is no other way to pay these things off, the debt can get passed to your estate, and become the burden of your loved ones.
One of the greatest gifts you can give your family is the ability to take care of you and your estate when you are no longer here to take care of them. Having final expense insurance can also give you the peace of mind that comes with knowing that, no matter what, whenever the time comes everything is going to be taken care of. Talk to one of our friendly specialists about your options and make sure that you find the right type of coverage for you and your loved ones today.