Final Expense Insurance
Final expense insurance is also being called burial insurance. This type of insurance are the hardest insurance to sell because of the fact that not many people would want to discuss their death to anyone before it occurred but final expense insurance will take care of everything that concerns your burial, lifting the financial burden from your family members. Funeral cost can reach as high as $25,000 and even more, the medical charges not covered by the medical insurance as well state and Federal charges can add up and result in a large sum of debts that will be left to your loved ones, taking a toll on families during times when they are already facing extreme emotional pain.
If you have a final expense insurance policy, you can spare your family from further expenses and your burial and funeral setup do not have to be painfully decided because once it happen, the insurance company would be the one handling it all of them, your casket, the funeral home that would handle the service, as well as the burial procedure and burial place. Final expense insurance may sound drastic considering that you are in a healthy condition but if you think about your grieving family, how hard it would be for them to scramble for decision after decision while taking the pain of your loss at the same time. Pre-planning is the key to get as much pain away as you can off from their shoulders.
More facts about Final Expense Insurance
According to the statistics, the interest of consumers on final expense insurance has been increasing rapidly in the past 30 years; this signifies that people are coming to realize that pre-planning will save them a lot time and money. Conventionally, individual funerals are usually funded using trusts, but these are much more complicated to arrange for trusts are liable to taxes and can even be more complicated of the purchaser moved out of their own state. The solution is to have an insurance that will cover up for your final expenses. Some of those who have life insurance may receive about $10,000 to cover for funeral cost, however this is not enough to cover up for such high expenses.
The AARP or the American Association of Retired Person says that funeral and burial expenses is one of the highest ranking expenses that older US citizens make, the basic cost is $5,000 and it wouldn’t stop there for this does not include additional funeral service expenses and other miscellaneous expenses. The ground funeral may cost up to $2,500 additionally which will depend on the state you reside. With all these expenses, the $10,000 life insurance benefit is simply way too short to fund for your funeral and burial expenses.
The final expense insurance can cover up to $25,000 unless you capped a certain amount on your policy. It can be customized or individualized according to your preference, the policy will vary from state to state but typically it covers for the cremation, casket or urn, flowers, hearses, grave marker, plot, embalming if applicable, funeral vehicle service, digging and filling of the grave. Embalming is not legally required except when public viewing will be held.
What to Consider when Purchasing a Final Expense Insurance
As mentioned above, your state law applies; there are regulations that must be followed that concern your final expense insurance. So before purchasing the final expense insurance, you must consider the following:
- Your state law and regulation about final expense insurance
- Pre-need insurance
- Financial planner
- Personal wish and your family’s recommendation
- The monthly premium and coverage
There are numerous factors affecting that must be considered beforehand because if anything goes wrong with the policy or you did not get what you signed up for, you can’t go back and sue your insurer for it. You need to disclose this to your family as well because there are some cases wherein their families do not know about the insurance, the insurer changes the policy and coverage and giving you the cheapest service even if you’ve signed up for a premium service, they can easily get away with it without anyone knowing about it. So you should certainly be careful about this insurance plan and be sure to talk to someone you trust about it after your purchase of a final expense insurance policy.