Most people have lots of plans for their life, but one thing people don’t often plan for is their funeral and the cost of their final expenses. While these aren’t the most pleasant plans to make, you should at least be prepared financially for when the time comes, and the best way to do that is by purchasing a life insurance policy. You can choose a final expense insurance policy, which is a type of whole life insurance that provides coverage for your end-of-life expenses, or you can purchase a policy that will provide coverage for more than just your final expenses. For example, if you want to leave behind a substantial amount to cover larger expenses, or possibly leave an inheritance in addition to simply covering your funeral expenses, you might want to look into more traditional life insurance. To figure out what kind of life insurance you need, you should compare the different types of policies, and take into consideration your current and future expenses.
Final Expense Coverage
The average funeral costs $10,000; you can choose to purchase a life insurance policy that will specifically cover these expenses, and will help relieve some of the stress and pain of a difficult time for your family. This type of policy, called final expense insurance, or burial insurance, covers the expenses associated with your death, including funeral and burial costs, as well as any medical bills and other debts. You have the option to choose policy coverage anywhere from $5,000 to $50,000, depending on your needs, and as long as you pay your premiums, your policy will continue until the day you pass away. The cost of this type of life insurance policy will depend on your health and age when you purchase the policy.
Life Insurance Coverage
If you are looking for more traditional life insurance coverage, there are several types of policies to choose from, including term life and whole life. The difference between the two is that term life insurance policies will cover you for a specific amount of time (or term), usually 10, 20, or 30 years, while whole life plans will cover you for your entire life. Term life is ideal if you want to provide coverage for a major but temporary expense, such as a 30-year mortgage, while whole life is better if you’re ok with paying a little more to build cash value and not have to worry about your coverage ending. Either of these policies, though, will ensure financial stability for your family after your passing.
A term or whole life insurance policy will provide your loved ones with one lump sum, or a monthly annuity to your family after your passing, and offer more coverage than final expense insurance – typically anywhere from $250,000 to $1,000,000, or more!
One thing to be aware of with more traditional life insurance policies is that, unlike with final expense, you will have to undergo a medical exam before you are approved so that the insurance provider can evaluate your risk. If you are older and/or have certain health conditions, you will pay more for monthly premiums than those who are younger and healthier.
Deciding Which Plan Is Best
Final expense life is a great option for those who are older or are in poorer health, and who don’t have or can’t get a traditional life insurance policy. Having this type of policy will give your family some kind of financial stability, at least for the unexpected expenses following your death, but it is important to note that final expense insurance only covers short-term expenses and does not provide anything more. If you want to provide more money to your family to replace your income, or to cover large expenses like a mortgage or college tuition, you should look into a different kind of life insurance policy. The best thing to do is to assess your current expenses, as well as future expenses, to figure out which plan is best for your family, as well as how much coverage you will need.
Purchasing life insurance coverage for your family is a responsible choice, and an important decision. While the thought of dying and not being with your family is difficult, imagine the suffering they will be going through – the last thing you want is for them to suffer financially, as well. Life insurance can help with your family’s expenses for many years and will prevent them from struggling in your absence.
If you’re not sure where to begin looking for a policy, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.