Part of getting older is planning for your end-of-life expenses. This may be difficult to think about and sometimes even talk about with your family, but purchasing the best final expense insurance plan now can save your loved ones thousands of dollars later. Continue reading below to learn more about final expense insurance and how to choose the best option for you.
How much is a funeral? Higher than you might think. The average cost as of 2022 is over $11,000. For this reason, it is important to look into final expense insurance options. Insurance to cover funeral costs can cover expenses like:
- Body transportation
- A casket or urn
- Burial or cremation
- Grave marker and plot
- Funeral services and other basic fees
Planning your funeral in advance will also save your family from making “emotional purchases.” Some spouses and children overspend on burial services as a way to honor their family members.
Then, they are left in debt and paying for the services for years to come. Probably not the way you would like to be remembered.
Unlike life insurance, burial insurance does not require a medical exam. For this reason, it is more convenient to purchase a policy.
You can usually purchase funeral insurance for $5,000 – $10,000, which is significantly less than a life insurance policy. Whole or term life insurance policies will typically cost between $25,000 – $50,000.
The typical burial insurance policy will pay out between $5,000 – $25,000 upon death.
Funeral or burial insurance is also referred to as pre-need life insurance. Some additional benefits include:
- You may be able to choose between monthly and annual premiums.
- Your policy may earn dividends.
There are other steps you follow to make things easier for your family.