How to Plan For Funerals and Other Final Expenses
Planning For The Cost of Funerals and Other Final Expenses
Most of us do not like to talk about this at all. But somewhere we may have experienced having to pay for a burial, funeral, and other final expenses. It is hard to get exact numbers, but it seems like the average US funeral can cost $8,000 or more today. That number will probably, like everything else, only get more expensive in the future. So how can families plan for this expense so that they do not have to add concerns over money to a sad time in their lives?
Savings - In an ideal world, everybody will just have cash to cover everything in an account. But many seniors, today, live on small incomes. They need their small income today to pay for a home, groceries, and some enjoyment. It would be very difficult, if not impossible, for them to try to save for a funeral.
The family may try to save the money, but again, they may have a hard time putting this money aside too. Grown children or grandchildren may not be in an economic position to be able to set aside the extra funds. Or if they do, it may be a hardship.
Credit - Lots of credit cards have very high interest rates. It is not unheard of for a family to put a funeral on a credit card. But by doing this, they often leave themselves with a bill they will be paying off for years. This is not an idea solution either.
Pre-Need Plans At Funeral Homes - Some funeral homes have plans that people can take out so they can pre-pay for the burial. These plans will cover expenses at the funeral home, but will not cover anything else. This may be one way to plan.
Final Expense or Burial Policies - These are smaller cash value life insurance policies that are marketed to people over 50. The prime intent of this coverage is to provide the cash to pay for final expenses. These expenses may be the cost of a burial, funeral, and other things that tend to crop up when a loved one passes away.
Many insurers market policies like these. You have probably seen ads for senior life insurance on TV, in a magazine, or on the web. They are designed to be affordable for many families, and they are also designed to be simple for older people to apply for.
How does this work? Well, it is a type of life insurance policy. Premiums are paid, and when the insured person passes away, the beneficiaries can collect a death benefit. The money can be used to pay for a burial, funeral, or other expenses. If there is any money left over, the beneficiary can use it in any way they want to use it. So the policy can provide some or all of the money to pay for final expenses. There can even be money left over. This is a flexible option, and that is why they are popular today.
How much do burial policies cost?
Your own rates will vary by your age, location, health, and the insurance company. Compare the best final expense insurance rates with our fast and safe quote forms. They will give you multiple quotes from different insurers who want to do business with you.
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