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Do You Need Funeral Expense Life Insurance and Why?

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funeral expense life insuranceMany people do not want to talk about death because they think it is morbid. And many believe that they should not even worry about the expenses because they are already gone. The truth is, if you care about loved ones, you need to plan for them financially no matter what happens to you.

Also called final expense life insurance, a funeral expense life insurance policy is meant to cover your funeral and burial expenses. This, however, should not be confused with typical life insurance because this may not leave money to the people you leave behind.

Instead, it will pay for your family’s expenses to give you a decent funeral and burial. And this is your choice. You can name a beneficiary who will receive cash at the time of your death. Or you can name a funeral home as a beneficiary and manage the money at your demise to put together a pre-planned funeral service. But do you need a funeral life insurance policy? Below are some reasons why you need this important coverage.

All Expenses Paid

When we die, our family shoulders the burden of spending for our casket, funeral services, dinner and snacks served, burial lot, and burial services. With the rising cost of these services, the family we leave behind may need to borrow money to coordinate a proper funeral. The need to lean on others for cash puts them in debt at the time of your death.

With an insurance policy, your family can expect to have resources to pay as much as $50,000 for your final expenses. This insurance will protect your family, most especially so if you are the breadwinner, and your children are too young to be working and financing your burial.

Peace of Mind for Everybody

It is painful enough that a family member passed away. But a family left behind with no money to pay for funeral expenses is like rubbing salt to a wound. Can you just imagine the emotional and mental pain your family has to go through once you leave this earth? Your passing can cause severe pain, and yet here is another problem—money.

If you plan your death as early as now, your family will, at the very least, have peace of mind that your funeral costs should never be an added burden. The only thing they have to deal with now is the anguish of losing a loved one.

You Can Choose from Several Options

Funeral insurance policies come in two payment forms. This allows flexibility for consumers who cannot afford to pay the lump sum. For starters, you can pay the single-premium policy in which you pay the entire policy cost. Once paid, you have immediate coverage for the full death benefit. This applies especially to those who are 70 years old and above. In fact, this is the only option to pay if you are already 70.

The second choice is called the Graded Death Benefit. This is a payment structure in which the coverage of your death benefit increases as time goes by. A five-year payment policy will give you a different benefit than a 10-year policy. For example, you may only get 30% of the face amount at the time of your death if it happens within the first year purchasing the policy, and then you can get 70% of the face value on the next year. This gets higher as you pay longer.

Your Final Wishes Acknowledged

Funeral life insurance gives you the freedom and power to plan your own services. When you die, your family will be able to just grieve without the distraction and stress of planning a funeral. Plus, pre-planning ensures your final wishes are acknowledged. You have peace of mind that you will get the type of funeral you prefer for religious or personal reasons.

Plus, your family will not be forced into a decision based solely on finances. Some grieving people are forced to plan a cremation or quick funeral because they cannot afford to fulfill their deceased loved one’s final wishes. Funeral expense life insurance makes it easier for everyone.

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Category: Life Insurance