It might be hard to think about, but one day, you’ll move on. You’ve made tons of memories in your years with friends, kids, grandkids, pets and other loved ones. The last thing you’ll want to deal with is final expenses. Unfortunately this can cost a lot of money. While your loved ones will want to celebrate your life, they’ll also be stuck with bills. Final Expense Insurance is the best way to handle the expenses that might pop up for them to handle.
What Is Final Expense Insurance?
The average funeral costs between $7,000 and $12,000 for a casket burial. Cremation is less expensive, but still a shocking $2,000 to $7,000.
Most Americans do not have this money available when they pass away. It’s their loved ones that end up paying for the funeral costs, and even they struggle to cover the expenses. With you gone, the last thing they want to think about is how to pay for all this.
Fortunately, you can help pay for these costs when you die.
What Does It Cover?
Final expense insurance covers the bills your loved ones will need to pay after your death. This includes medical costs as well as funeral expenses.
Upon your death, the person or persons you name on the final expense insurance policy will need to file a claim with your insurance company. The claim can include any expenses directly related to your death.
Healthcare insurance may cover the medical bills resulting from any care received before death. Final expense insurance will help with any costs not covered.
The amount final expense insurance will cover depends on the policy purchased.
Who Needs Final Expense Insurance
Many people question whether or not they need final expense insurance because they have term or whole life insurance. In some cases, life insurance will pay for final expenses. However, term insurance will not if you outlive the policy term.
The purpose of life insurance is to help your family financially after your death. They will need to use a portion of your life insurance for your final arrangements. This makes life insurance more about you than helping them.
Final expense insurance covers what your loved ones have to spend on your burial, so that your life insurance can help them. This is why many people refer to final expense insurance as burial insurance.
Getting a Quote
Just like with all other types of insurance, it’s important to shop around for the best policy for your needs and budget. Depending on your final wishes, you may need a policy that covers only $10,000 in funeral costs or you may need one that can pay for $20,000 worth of burial expenses.
Each insurance company has its own life expense policies, terms and costs. Take your time with the final expense insurance quotes you receive from different companies.