It depends. If you already have term or whole life insurance, the payout from those policies can help your loved ones pay for final expenses. But, if you have term life insurance and you outlive the policy term, it’s a different story. In that case, you may want to consider final expense insurance.
Alternatively, maybe your family will have plenty of assets to work with when you die. In that case, you may not need insurance as they could afford to foot the bill for your final expenses on their own.
It’s a good idea to assume around $10,000 for funeral expenses. But don’t forget to take into account whether you will want a catered party after the service. Maybe you’ll end up leaving big bills behind. If situations like these sound like your situation, you may want to consider securing final expense insurance.
What does it cost?
The exact cost of your final expense insurance will depend on your age. The older you are, the larger the premiums. This is because insurance companies take on more risk when insuring older individuals, given the fact that they’re statistically closer to death. If you buy final expense insurance when you’re 45, you’ll pay less each month than if you wait to purchase until you’re 74.
The takeaway
Whether you choose a life insurance policy that covers funeral expenses and then some, a dedicated final expense insurance policy, or funeral pre-payment, you’ll be doing your loved ones a huge favor.
Taking the time to consider and document your end-of-life wishes may be a little uncomfortable now, but it will make all the difference when the time comes.
If you’re having a hard time figuring it out on your own, you can contact us at (616) 205-5222 or [email protected].