Year after year, we are faced with the rising costs of final expenses and find ourselves frantically running around looking for a solution to this problem. The last thing we want to do is burden our loved ones financially when we pass. This is why final expense insurance is becoming more and more popular and is becoming a viable option for those who want to make sure that their family maintains their financial security instead of being saddled with all the expenses due to our passing.
Rising Funeral Costs
In the United States today, the average funeral costs upwards of $8,000, and this number can vary significantly depending on the type of services and options that are chosen for the funeral and burial. These costs also continue to rise each year, which can put a hefty financial strain on our loved ones.
What Is Final Expense Insurance?
Several funeral insurance plan types exist. These include final expense, burial, and preneed. Understanding the differences between these plans is important. Burial insurance or preneed insurance are often seen interchangeably, and these plans cover the majority of the costs associated with the burial and funeral. It can also be considered a prepaid funeral plan.
Final expense insurance, on the other hand, covers the burial and funeral costs but is much more extensive coverage that is more flexible and has its own advantages. This kind of policy covers outstanding debts, probate fees, and other final expenses in addition to the burial and funeral costs. It also allows you to choose your own beneficiary, which you can't often do with burial insurance.
Benefits of Final Expense Insurance
Final expense insurance policies can increase in value over time and works almost like a savings account, meaning that the balance will continue to go up as you pay. Additionally, while the initial premium price may be higher if you are older, the amount of the premium will not continue to rise as you age.
For this kind of insurance coverage, you will not be required to take any kind of medical examination. If you experience any change in your health, your policy will not be canceled. It is insurance that is available for those even with poor health. Graded benefits are available, meaning that a portion of the policy will be available for the first few years with the remainder becoming available after that.
Another advantage of this insurance is that you don’t have to pay the policy all at once. You can make term policy payments that you can pay monthly or even yearly.
To determine how much coverage you will need, you should try to estimate your final expenses, including all household expenses and funeral costs. You also need to keep inflation in mind as well when calculating these costs. Remember, the funeral expenses are determined by what services you feel as if you want to have. So, make sure to find accurate estimates as to the costs of any additional service you want to be included.
Final expense insurance ultimately provides you with a way to ease the burden of your grieving loved ones while having the peace of mind knowing that you have a say in what happens after you pass. Take the time and review the options available to you and find the final expense insurance that best suits your needs.