We all know its going to happen one day, so why put off planning ahead?
Nobody enjoys talking about death, but part of being an adult is dealing with the uncomfortable because it’s the right thing to do.
We have insurance to cover our car, health, home and much more. But should we have insurance to cover our end of life expenses?
The answer: It depends.
Let’s face it, if you don’t have a plan in place to pay for your final expenses, your family will pick up the slack.
Think about that for a moment.
Your family will step up and pay for your funeral costs if you do not.
Every time someone loses a loved one, they want to see them honored in a respectable and dignified way. That’s why so many families take on debt or sell personal belongings just so they can honor whom they lost.
Funerals aren’t cheap either. On average, a funeral can cost up to $10,000 depending on the service.
What if your family had to pay for a bill that large? That is a lot of money for anyone to come up with let alone with no time to prepare.
The truth is most families simply don’t have that kind of cash laying around which means they have to resort to less than ideal means of raising money.
Ultimately, if you don’t have the cash or assets on hand right now to pay for your burial expenses, then yes you need insurance to cover this eventual loss that your family would experience.
Oftentimes insurance companies will market policies specifically for this cause. They’re usually referred to as burial insurance plans or final expense insurance.
They’re really just small life insurance policies. The idea is the policy insuring your life will payout a cash benefit to your beneficiaries so they have the money to pay for your funeral.
Most companies that sell these plans allow you to buy as little or as much coverage as you want.
That’s great news if you want to be cremated. If so, you’ll only need a little bit of coverage. Thankfully you can buy small amounts such as $5,000 in coverage.
Most of the time these plans are whole life which simply means it will never expire. You can forever count on the policy being in force for as long as you live. However, some companies sell a term policy that will expire between 80-90. Make sure you get clarification up front before you sign on the dotted line.
Either way, qualifying appears to be very simple. There usually aren’t medical exams required and many common health issues are accepted by most insurance companies.
What if you are really unhealthy; will you be able to get coverage?
The answer is yes! Some (not many) insurance companies have plans where your acceptance is guaranteed. They have no medical questions and you cannot be turned down. Granted, they cost more and seem to all have a waiting period provision. However, that’s the price you pay if you are in a really high-risk category.
At the end of the day, if you know your family will not have to pay for your funeral bills, you’re all set. Pat yourself on the back for a job well done.
However, if that is not your situation, you should seriously consider getting life insurance to ensure your family can remember you rather than what it cost to see you off properly.