burial / final expense
Final expense life insurance can save families from having to withdraw from their savings or having to sell precious assets to come up with the necessary funds required to bury a loved one.
Help Your Family Deal with Death Expenses
Losing a loved one is an extremely difficult experience. Picking up the pieces while dealing with the accompanying emotions can be stressful. There are also many expenses associated with death that can, on average, very well exceed $8,500.
Without a final expense life insurance policy, most families have a hard time coming up with these funds quickly. Final expense life insurance can save families from having to withdraw from their savings or having to sell precious assets to come up with the necessary funds required to bury a loved one.
Why purchase a final expense insurance policy?
While most people don’t like to talk about end-of-life issues, it is important to plan for them. Expenses associated with death, such as, medical bills and funeral expenses can have a substantial financial impact on those you love. Final expense life insurance can help protect loved ones from having to pay these costs out of pocket and making sure these expenses do not become a financial burden on them.
In the 1960’s, the average national median cost of an adult funeral was about $700 and in 2017, the average funeral exceeded $8,700, per NFDA (National Funeral Directors Association) statistics.The first thing you need to be aware of is that funeral costs will vary considerably depending on your geographic location, the funeral home you choose and the funeral choices you make.
Here’s a breakdown:
2017 National Median Cost of an Adult Funeral with Viewing and Burial: $8,755
- Non-declinable Basic Services Fee – $2,100
- Removal/transfer of remains to funeral home – $325
- Embalming – $725
- Other preparation of the body – $250
- Use of facilities/staff for viewing – $425
- Use of facilities/staff for funeral ceremony – $500
- Hearse – $325
- Service car/van – $150
- Basic memorial printed package – $160
- Metal casket – $2,400
- Vault – $1,395
*Source – NFDA 2018 Cremation and Burial Report. National Funeral Directors Association. Brookfield, WI
In addition to these costs, there are a number of other related expenses such as flowers for the funeral (can vary from $200 to $400 or more), the newspaper obituary fee ($100 to $600 or more), the clergy honorarium (around $200 to $300) and extra copies of the death certificate ($5 to $35 per copy depending on the state).
And, a number of large cemetery costs like the plot or mausoleum fee, the vault or grave liner that’s required by most cemeteries, and the opening and closing of the grave, all of which average between $2,000 and $4,000; and the gravestone, which typically costs between $1,000 and $3,000.
All done, the average cost of a total funeral today may very easily be over $11,000.
Do I need a final-expense policy?
The answer to that question will vary from person to person. Do you already have term or whole life insurance? If you do, that policy can help your loved ones pay for final expenses. However, if you have term life insurance and you outlive the policy term, it’s a different story. In that case, you may want to consider final expense insurance to ensure that you will have a policy that will not lapse while you’re still living.
Alternatively, maybe your family will have plenty of assets to work with when you die. In that case, you could use what is called “self-insurance”. “Self-insurance” is one of those terms that sounds more complicated than it is. To self-insure is just to use your own money rather than using a life insurance payout.
Could your family self-insure for your final expenses? It is a good idea to assume around $10,000 for funeral expenses. But do not forget to consider whether you will want a catered festivity after the service. Or perhaps a trip abroad to scatter your ashes. Maybe you’ll end up leaving big bills behind. If situations like these sound like your situation, you may want to consider applying for final expense insurance. In addition, it’s important not to count on the lump sum death payment from Social Security to cover these expenses. It’s only $255!
Highlights of owning a final-expense policy:
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Peace of mind of having lifetime protection, as long as premiums are made as agreed in policy.
Premiums are guaranteed to remain level and never increase regardless of future change in health or older age.
The policy goes wherever you go. If you are traveling or if you re-locate to another city or state your policy stays with you.
Every final expense policy earns cash value overtime, and it accumulates on a tax-deferred basis. Cash value may be borrowed against but is important to keep in mind that unpaid policy loans will reduce the death benefit amount. If a policy is surrendered, you may be entitled to obtaining a Cash Surrender Value paid to you.
Simple Application Process
No medical exam is required. The application process is quite simple, and the approval turn-around is normally within a few business days. As part of the underwriting process, most carriers may require a phone interview, and in many cases a pre-approval may be obtainable at the conclusion of the phone interview.