The Importance of Final Expense Insurance

Do you know how your family will take care of funeral and burial costs after your death? If you are not absolutely certain your loved ones can depend on your finances to cover all costs, your death may not only be an emotional blow, but could also wound your family financially as well. Final expense insurance guards against monetary obstacles by providing cash for all immediate costs charged by funeral homes, crematories and burial grounds.

How Much Will Your Burial Cost?

According to the National Funeral Director’s Association, the average cost of a funeral in 2012 was $7,045 with a casket and $8,343 with a vault. The price may not include the grave plot, headstone installation and cost to dig and reinforce the grave. Cremation costs are lower, but can still reach up to $4,000 when arranged through a funeral home. Other charges may be added including the cost of an urn and related death certificate paperwork processing fees.

What’s the Difference between Final Expense and Life Insurance?

Don’t make the mistake of assuming your life insurance policy is all that is needed to provide for your end-of-life costs. While life insurance is useful to pay off debts and provide an inheritance for dependents, life insurance payouts may not arrive in time to assist with the funeral and burial bills. Additionally, obtaining a life insurance policies normally involves a more in-depth process where the applicant must pass a health exam before the policy is issued.

Whereas life insurance policies usually require the applicant to obtain a minimum of $25,000 of coverage, final expense insurance policies allow applicants to pay for coverage limits under that threshold – only as much as they estimate their family will need to cover funeral costs. Also, final expense insurance pays the recipient within a few days, ensuring the money is on hand when needed. And final expense insurance is accessible to anyone, regardless of the state of their health.

Review Your Finances

How do you know for certain if you need final expense insurance? Look over your accounts. You may have assets of significant value, but if your assets cannot be liquidated in a short period of time – a matter of days – your family may have to pay the bills up front, a scenario you would rather avoid. Also, estate taxes and court proceedings could take money away from the total your family receives as well as significantly lengthen the time involved with liquidation and delivery of the funds.

Select Your Preferences

Final expense insurance allows individuals to have greater control over the decision-making involved postmortem. Choose between cremation and burial and select the casket or urn you prefer. Arrange proceedings with the funeral home of your choice and make your wishes clearly known. You are taking the weight of this responsibility from your grieving family members, removing additional emotional turmoil and mental stress from their lives in a devastating period of their lives.

Have Confidence Your Family is Secure

No matter your age, it’s time to protect your family’s future by investing in a final expense insurance policy. Gain confidence by knowing your loved ones will not suffer financially after you pass on. Talk to the helpful team at My Senior Health Plan for assistance in exploring your final expense insurance plan options.


Pete Blasi