Cost of Funerals and How to Plan

Plan For The Cost of Funerals and Other Final Expenses

This can be an unpleasant topic to bring up, or even to think about. But many of us do not think that planning for funerals and other final expenses means we are insensitive. In my experience, many older people are actually proud and cooperative when they are part of this process. These people have been financially responsible their whole lives, and they feel satisfied that they can continue to do this even after they pass away.

Costs of Final Expenses

Final expense is a term used to refer to those costs that come up after a loved one passes away. Consider some common costs.

• Funeral and Burial – It is not easy to find exact figures on this, but I can estimate that an average funeral and burial in the US will cost $8,000 – $10,000 or more. It can be difficult, or impossible, for many seniors to set aside money for this. And it can also be a financial strain on families.
• Lost Time From Work – Many people will probably have to take time off of work. Not everybody will be compensated for this.
• Travel and Accomodations – Some friends and family may have to travel. This means they will have to pay for transportation, housing, and meals. Local host families may have to help provide meals and beds, or they may have to make arrangements at hotels. Some people may have to rent cars to ferry guests around.
• Settle Bills – After a death, a loved one may leave some bills behind. Their could be final payments for medical services, housing, or even cars.  Somebody will have to figure out how to deal with these.

Final Expense Insurance For Seniors

One common way to plan for final expenses is to purchase a senior life insurance policy. These are also called final expense or funeral insurance. They are actually whole life insurance policies with a smaller face value ($2,500 – $25,000). They are designed to be simple for seniors to apply for, and they are specifically marketed to people in middle age through retirement years.

Who Pays for Final Expense Insurance?

Sometimes an older person will buy the policy on themselves. This means they will be the insured person and owner of the policy. They may name a grown child, or other family member, as the beneficiary so that person will have the cash to plan for the burial, funeral, etc. Sometimes that grown child or other loved one will actually purchase the policy and be the beneficiary and owner. This is not because that person wants to profit from the death of a loved one, but just so they will be sure and have cash to tide them through a tough time!

Shop Around For Final Expense Policies

Please do not purchase the first policy you see advertised on TV! As with any other insurance, all companies and policies are not the same! For one thing you should be sure and know the difference between simplified and guaranteed issue life insurance  policies. You can get a better deal and save money by purchasing the right one!

Since most things to do with insurance are local, you can get final expense insurance quotes in your own zip code with a fast insurance quote form.  Not every family needs a policy like this. Some have a fund set up to handle these costs. But for many middle class people, or for seniors living on fixed incomes, these policies can be an affordable way to plan.

Related posts:

1. Do You Need Burial Insurance?
2. Planning For Funeral Expenses
3. Are Guaranteed Issue Life Policies A Good Buy?
4. Do We Need Long Term Care Insurance?
5. Single Premium Life Insurance

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