After you’re gone, your loved ones will be faced with both emotional and financial stress. Coming to terms with the death of a loved one is a difficult proposition for anyone, and when families are left trying to figure out how to afford funeral costs and final wishes, this added stress doesn’t help. Social security may pay up to $250 towards final expenses, but with the average cost of a funeral rising to $7,000 to $10,000, this small payment makes little difference. Final expense insurance works to alleviate this stress and provides a solution for those who don’t want to burden loved ones with mounting final expenses.
The Basics Of Final Expense Insurance
It’s important to know that while final expense insurance is a type of whole life insurance, it actually differs quite a bit from traditional life insurance policies. Life insurance is in place to take care of family and loved ones in the event of your passing, covering mortgage payments, tuition bills, and lost wages as well as final expenses, while final expense insurance focuses solely on end-of-life concerns.
Final expense insurance will cover medical costs if a person was in the hospital leading up to their time of death, it covers funeral service costs, flowers, transportation, cremation, and all other expenses one would incur while planning a celebration of life. While it doesn’t help to cover additional expenses or taking care of the family in the event of an untimely death, it does ensure family will not need to go into debt in order to make sure final wishes are met.
The main reason why one would opt for final expense insurance over whole life insurance is simple; they may not need all of the bells and whistles involved in the latter. For older people or those with grown and established children, a full life insurance plan may not be a cost-effective option. Final expense insurance may cover less, but it also comes with much lower premiums on average. As a form of whole life insurance, premiums for final expense insurance never go up, and coverage never goes down, as long as premium payments remain in good standing.
Some Costs Associated With The Average Funeral
Even a funeral without much fuss or fanfare can be costly. According to the National Funeral Directors Association, some common funeral cost averages include:
The average casket will cost around $2,400 but can become exponentially more expensive depending on the particular model.
The average memorial service will cost around $2,000.
The average gravesite will cost around $1,000, but this number varies greatly depending on desires and location.
Transportation via a hearse will run around $300.
A simple, flat, and small gravestone may cost just under $1,000.
Gain Peace Of Mind
Even a basic funeral can run a family well over $6,000, which is more than the average family can spend without accruing some type of debt. To learn more about final expense insurance and how it can be a solution for your family, contact Living Legacy today.