While it may not be a subject many of us like to discuss, there are many expenses that follow when a loved one passes away. Especially when it is a sudden loss, it can take a family off guard. When medical bills, burial costs, and other financial obligations get piled onto a family already in mourning, it’s too much stress for anyone to be under. It is for this reason that final expense insurance exists. We would like to inform you of the importance of final expense insurance so that you can leave your loved ones behind with peace of mind. For all of your life insurance needs, contact us at Midgard Life Insurance.
-How much does a burial cost?
The National Funeral Director’s Association stated that the average cost of a funeral, as of 2012, was around $7,000 with a casket, and that goes up to nearly $8,500 with a vault. Depending on the funeral home you go through, that may or may not include a grave plot, headstone (with installation), and the cost of digging and reinforcing the grave. While it can cost less to choose cremation, it can still reach upwards of $4,000. Other charges that need to be accounted for are the cost of an urn and any related processing fees for the death certificate.
-Why would I need it if I already have life insurance?
Life insurance is typically best utilized to pay off debts or give an inheritance to dependants. This is largely because it takes time to receive a life insurance payout, too long to be truly helpful with burial and funeral bills. A life insurance policy also requires a very in-depth process that includes a health exam the applicant must pass. Final expense insurance, in contrast, is paid out within a few days, ensuring it is available to handle the expenses that come up right after a death. It is also available to anyone, regardless of health status, and does not require a minimum level of coverage to be obtained (life insurance carries a minimum requirement of $25,000 of coverage).
The only way to be sure if you will need final expense insurance is by taking a closer look at your finances. While you may have assets that are of a significant value, are they able to be liquidated within a couple of days? If not, your family could have to pay those bills upfront, which is a burden no one wants to leave their loved ones with. Not only that, any estate taxes or court proceedings may take money away from how much your family receives, while also extending the amount of time it takes to liquidate assets and receive life insurance funds.
-Make it your choice
When you elect to have final expense insurance, you are able to take more control over decision making after you pass. This insurance will allow you to choose whether you are cremated or buried, along with your preference of urn or casket. You will also be able to arrange services with a funeral home of your choice. Not only are you making your final wishes clear, you’re also taking a massive amount of stress off the shoulders of your loved ones when they are already stressed and in mourning.
-Peace of mind that your family is secure
No matter how old you are, protecting your family’s future is something to be taken seriously. Final expense insurance is one thing you can do to ensure your family is covered financially after you’re gone.
It may not be a fun subject, but it is still important to discuss. Final expense insurance can save your family a great deal of stress when they will already be emotionally compromised. It can also ensure your voice is heard and your wishes are followed when you pass. Whether you would like to discuss final expense insurance, funeral planning, or life insurance, we hope you will call us at Midgard Life Insurance Services. We’re here to help through this trying time.