5 Reasons To Buy Funeral Expense Insurance
You can never truly prepare for the impact of a loved one’s passing, but life insurance makes a big difference. Funeral expense insurance, also called final expense or burial insurance, is an accessible way to get life coverage if you’re between the ages of 50 and 85 (in most states). This type of policy provides a cash benefit to help with your family’s immediate needs.
There are many reasons why you may decide to purchase a guaranteed acceptance funeral insurance policy. Here are a few that could apply to your situation:
1. Funerals Are Expensive
Families are often surprised by how quickly funeral expenses add up, with bills totaling more than $7,000 on average. Some of the costs you may need to account for include:
- Service fees for funeral planning, administration, and permits
- Transporting remains to a funeral home
- Embalming, dressing, and makeup, if your family plans on a viewing
- Casket or urn
- Facilities and staff to host the funeral
- Printing programs and signs
- Burial plot and headstone
Funeral insurance plans can make everything that goes into this solemn event more affordable.
2. You May Leave Debts Behind
The benefit from a funeral life insurance policy doesn’t have to be spent solely on funeral costs. Your loved ones can also use that money toward other expenses that would otherwise come out of your estate. Those debts might include your final medical bills, outstanding balances on credit cards, a car loan, or a mortgage.
3. You Have a Health Condition
Your current health can be an obstacle toward purchasing certain types of life insurance:
- Whole life insurance policies, which last through your lifetime, require a medical exam before you can qualify.
- Term life policies, which last for a specific period, may not require a full exam, but the insurance carrier will ask health questions as part of the enrollment process.
If you live with any chronic health conditions, that might mean paying more in premiums or being denied coverage altogether.
With a guaranteed acceptance funeral expense insurance policy, you won’t have to get an exam or answer health questions to enroll. However, there may be a limited benefit period when you join. That means your loved ones will not be eligible to receive the full death benefit until the end of this waiting period.
4. Term Life Polices End
Depending on your age and health, term life policies can be an affordable way to get covered for a certain length of time, which may be 10, 15, 20, or 30 years. Once the term is over, you will need to pay higher premiums to renew, or you may not have the option to continue that policy at all.
By enrolling in funeral expense insurance, you can be confident that you’ll still have coverage after any term life policies end. If you continue to pay the premium, this type of insurance will last for the rest of your lifetime.
5. You Want To Minimize Stress for Your Family
Perhaps the most compelling reason to purchase funeral expense insurance is that it helps your family manage a difficult time of grief. The loss of a close loved one is one of the most stressful events that anyone must face in life. You can make a difference with some thoughtful planning that includes steps like:
- Organize important documents and store them in a secure place.
- Document your final wishes for burial or cremation and funeral arrangements.
- Write a will that names an executor for your estate and gives directions for dividing your assets.
Funeral expense insurance can help your family with immediate costs, taking some of the worry out. Find out whether there’s a guaranteed issue final expense policy that’s right for your needs and budget.
Sources
Funeral Costs and Pricing Checklist. FTC.
Types of Life Insurance Plans and How to Decide Which One Is Right for You. Investopedia.
How to overcome grief’s health-damaging effects. Harvard Health Publishing.