There’s no way around it: funerals are expensive. With the average funeral costing anywhere between $7,000 and $10,000, you need to have a plan for how to pay for it. For some people, that plan is a final expense life insurance policy. This policy will pay for your final expenses, but it also has several intangible benefits as well.
Intangible benefits of final expense life insurance
- Financial discipline. Unlike with a savings account, you can’t dip into a final expense policy if you come upon hard times. This may not sound like a good thing at first, but it guarantees the money will be there for when you really need it.
- Immediate funds. Many term and whole life insurance policies will require an investigation into a death before the death benefit is paid out. However, most final expense policies pay the death benefit directly to the beneficiary within days of the death so that they can use the funds immediately.
- No overspending. People may accidentally overspend on a funeral because they view the funeral as a final act of love for the deceased. This can lead to them overspending on the funeral. A final expense policy can ensure that your loved ones stick to the budget.
- Time to decide. By buying a final expense policy, you are safeguarding your future and allowing yourself time to think about what kind of funeral and burial you want. This process can be difficult for many people, but it can be even more difficult for a grieving family to plan a funeral during an already difficult time.
- Wishes will be followed. If you opt for a final expense insurance policy, you will need to name someone as your beneficiary and have a conversation with them about your final wishes. In fact, it would be wise to put this in writing and give a copy to the beneficiary and your attorney. This gives you peace of mind knowing your wishes will be followed.
Pre-arranging a funeral can be a difficult task, but a final expense insurance policy can ease the burden both financially and emotionally.