Making all the necessary preparations to bury a loved one can be a deeply exhausting event both physically and psychologically. Attempting to do so without sufficient financial resources can make the situation all the more difficult.
If you have ever been put in the situation where you have to help with the final arrangements after the death of a loved one, you know that finances are the last thing you want to worry about at that time, but it is a very real concern. Funeral and burial or cremation costs can be over $5,000, sometimes even well over $10,000.
Dealing with the loss of a loved one is difficult enough without having to worry about this financial burden.
Final expense insurance plans are designed just for this situation. They can help to mitigate the financial blow that can be dealt to loved ones left behind.
Planning a service with the support of a reputable funeral director can help you to plan ahead for your inevitable demise. Doing so allows you to make sure your final wishes are all met, but it also takes the burden of planning for your final arrangements off of your family and friends. You can decide if you want to be buried or cremated, have a small ceremony or larger one, and take care of any other wishes you would like to see met. Sitting down with a funeral director is helpful because they can bring things to your attention that you would never have thought of or planned for.
With the arrangements planned ahead of time, you know what the associated cost is going to be and can begin planning for how to pay for those arrangements.
If you know that financially you will not be able to pay for the final arrangements out of pocket, you can look for a funeral insurance policy to cover your final expenses.
As with other types of insurance policies, there are a wide range of options and coverage available. You can find funeral policies in both term and whole life plans. With term polices, the coverage is in force for a specific time designated by the policy. If you pass away in that time frame, the death benefit is paid out. If you outlive the term, you are no longer covered. Whole life policies remain in force, but are generally more expensive and provide less of a death benefit. They often can be purchased at older ages where term policies are not available.
Obtaining a final expense insurance policy is fairly simple. Most policies just require you to answer a few simple medical questions to prove your eligibility. You can also find guaranteed issue policies which you may qualify for when health conditions would otherwise disqualify you. They are more expensive than other policies.
With serious health issues, the insurance carrier may offer you a graded benefits policy. With this type of policy, you will be required to survive a minimum amount of time before the full death benefit would be paid out. Typically, if a policy holder passes away before that minimum time period, premiums paid into the policy are returned and sometimes include a modest amount of interest as well.
Not everyone can afford a traditional life insurance policy or qualify for one. This is where a funeral insurance policy can be the right choice to give you the peace of mind that you are not leaving a financial burden behind for your loved ones.