While most people do not enjoy discussing the details about how life will be when they are gone, making financial preparations – as well as making any other funeral wishes known – can be important so that you do not leave a financial burden on your family.
In making your wishes known, your loved ones will be better able to do what needs to be done in terms of carrying out your final wants. By having a discussion with your loved ones and / or putting your wishes in writing, you will have a better chance that those you care about will be able to follow through.
Why It Is Important to Make Your Funeral Wishes Known
Though it can be a touchy subject, it is important to have your funeral wishes known. It is never “too early” to do so. That is because, unfortunately, serious illnesses and accidents can, and do, occur. With that in mind, having a good idea of how you would like your service to be performed, as well as knowing the approximate costs, is key.
How Much Does a Funeral Cost?
Today, the average cost of a funeral can run in the range of $7,000 to $10,000 – but that is just an average. Depending on the type of arrangements you have, as well as the other related products and services that are purchased, there are some funerals that can exceed $30,000 in cost.
Why do funerals cost so much?
There are several reasons for this. First, there is much to do in order to prepare for one’s funeral. For example, the funeral home that is taking care of the service will typically have to prepare the body. Even though this is not legally required in many states, most funeral homes will not perform the service unless this is done.
There is also the cost of the memorial service itself. Here, you can find charges for the minister or another speaker(s), the music that is performed, the funeral director – especially if done so by a professional musician or group – the flowers, the transportation from the funeral home to the grave site, and the cost of printing up funeral notices.
There is also “merchandise” that often needs to be purchased. In this case, if the decedent is going to be buried, then a casket will be needed – and, depending on the type of casket that is purchased, this item alone can be the most expensive item that the decedent (if pre-planned) or loved ones will have to buy.
These can come in a wide variety of different models, such as wood, metal, fiberglass, fiberboard, or even plastic. They can also be made out of bronze, mahogany, or copper. For a basic model, the cost can run approximately $2,000. More high-end models, however, can be more than $10,000.
If being buried, then a burial vault or a grave liner will also oftentimes be needed. The purpose of these is to better ensure that the ground will not cave in as the casket deteriorates over time. While state law does not require that an individual have a grave liner or a vault, many cemeteries will not bury a body without one. This is so that the ground throughout the cemetery will remain more even.
Other expenses that can be incurred when a person is buried is the cost of the burial plot itself, as well as a headstone. In many cases, there may also be a cost for delivering and setting up the headstone once it has been made.
In lieu of being buried, today many people are choosing to be cremated. There can be several reasons for this, including cost, as well as environmental consciousness. By being cremated, a person will not require a large plot of land to be buried in. Nor will there be the issue of decomposition.
Regardless of what you choose to do, it is important to let your loved ones know what your wishes are so that they may be properly carried out. In addition to making your wants known to those you love, another key variable to ensuring that the items are carried out is to have a plan for how they will be paid for.
How to Pay For Your Funeral – Without Having to Dip Into Savings or Use Credit
There are several ways in which you can ensure that your funeral expenses and other related costs will be paid for. One way is to simply allocate a certain amount of savings that will be earmarked for your funeral and other related costs.
Another way is to purchase a final expense policy. This type of life insurance coverage – also often referred to as funeral insurance or burial insurance policy – is specifically designed for paying the costs of one’s funeral and other final expenses.
Final expense insurance is typically sold to those who are between the ages of 50 and 85 – although, there are some insurance carriers that will provide this coverage to applicants who are older.
In many cases, the benefit amount that is set for final expense coverage is in the range of $5,000 to $25,000. This is because this dollar amount will often be more than sufficient for paying off the cost of one’s funeral.
There are instances, however, where a person may add some additional coverage to a final expense insurance policy so that, if he or she also incurs uninsured medical expenses, hospice costs, or other end of life expenses, the policy can also pay for these, rather than having the cost fall to their loved ones.
As compared to other types of life insurance coverage, final expense life insurance can typically be easier to qualify for – even if an applicant already has an adverse health condition, the same applies to a guaranteed issue policy. This is because many final expense policies do not require a medical examination as a part of the approval process. In some cases, a final expense life insurance policy application may not even ask any medical questions. Here, as long as the premium is paid, the coverage will be approved – and it will remain in force over time.
Final expense life insurance will also provide a cash value or savings component within the policy. The funds that are in the cash value are allowed to grow on a tax-deferred basis. This means that there will be no tax due on the growth of the funds – and tax will only be incurred if or when the money is withdrawn. This can allow the cash to grow and expand throughout the years.
A final expense life insurance policyholder may either borrow or withdraw the cash value for any reason – such as the supplementing of retirement income, paying off debts, or even for taking a trip. However, it is important to note that if the cash is not repaid to the policy, the amount of the unpaid cash will go against the amount of the death benefit that is eventually paid out to the beneficiary. This could be detrimental to your loved ones, especially if they were expecting a certain amount of money for paying for your funeral and your other final expenses.
By letting your loved ones know about your funeral wishes, you can help to ensure that the service you prefer, as well as the place of your final interment, will be carried out. One of the best ways to be sure that all will be done as you wish is to have a plan in place – including a manner of payment. And, one of the best ways to pay for final expenses is through a final expense life insurance policy.
Where to Find the Best Premium Rates on Final Expense Life Insurance Coverage
If you are looking for a way to ensure that your funeral wishes are carried out, and that loved ones will not need to worry about the cost, then purchasing a final expense insurance policy can help. But not all final expense insurance plans are exactly the same. Just like any other product or service that you purchase, the benefits may differ – and, even when the benefits are the same, the premium price can differ from one insurance company to another.
That is why it is important to work with an independent life insurance brokerage when purchasing final expense insurance. Doing so will allow you to directly compare different life insurance policies, companies, benefits, and premium cost – and from there, you will then be able to determine which plan makes the most sense for you.
When you are in the process of purchasing final expense coverage, we can help. We work with many of the top life insurance carriers in the industry today, and we can assist you in obtaining all of the key details that you need. In order to move forward, just fill out the form on this page.
We are also here to answer any questions that you may have. Please feel free to call us, toll-free at 888-389-8676. With an ally on your side, you can get your final expense coverage seamlessly in place. So, contact us today – we’re here to help.