Not Having Final Expense Insurance Can Be Disastrous

When it comes to the death of a loved one, a range of emotions come over those left behind.

One of the last things the survivors need to deal with is not having the necessary expenses to bury their loved one.

As costs continue to increase for funeral expenses, having final expense insurance is a great way to offset those costs.

While many people in the over age 50 group are likely to think about what type of funeral they would like to have, it is not a given for everyone, be they over or under age 50.

According to the Federal Trade Commission (FTC), a traditional funeral that includes a casket and vault will run you approximately $6,000, with the addition of flowers, obit notices and limousines running the tab to more than $10,000.

Planning and Insurance

The majority of funeral homes make available pre-planning services.

By having pre-planning services, you can make arrangements ahead of time for a portion or your own entire funeral, down to each detail. As required by the FTC, the funeral director will provide a price list for services and goods.

Should you decide to pre-pay your details; many funeral directors will offer a price guarantee. By doing so, you can lock in the current prices even if your funeral is years away.

At the time your pre-planned arrangements are set, you can choose to pay some or the entire bill prior to your death. This will help remove the burden from loved ones and ensures that your final wishes are carried out.

One of the main ways to fund a pre-paid funeral is final expense insurance.

Final expense insurance, which is also known as funeral or burial insurance, is a life insurance policy that carries a low face value, like $5,000 to $50,000, that you purchase directly from an insurer.

With this form of insurance, you can designate any beneficiary, typically a family member who would make the claim and receive the money at the time of your death. That individual would then be responsible in using the funds to make sure your wishes are met.

At the time of your passing, the beneficiary legally could determine to use the funds any way they want, so it is important to find a trustworthy beneficiary. Should your benefit amount exceed the cost for your funeral, the beneficiary pockets the difference.

The beneficiary legally could decide to use the money any way they want, so make sure you trust your beneficiary.

Also, if your benefit amount exceeds the cost of your funeral, the beneficiary keeps the difference.