Once you die, unfortunately, there are other things for the grieving family to worry about than just mourning their loss. There are bills to be paid and expenses to be taken care of. If you haven’t saved up and left the funds for your family to manage their expenses, they’re going to struggle with the final expenses.
It’s important to quote Ben Franklin here because he put this dilemma quite aptly:
“In this world, nothing can be said to be certain, except death and taxes.”
This makes it clear that financial difficulties will continue to haunt you and your family after death if you don’t take preventative measures now. This is why you need final expense insurance so that it covers immediate expenses like the cost of funeral and cremation (if needed).
Here’s all you need to know about this.
Why Can Expenses Exceed Your Expectations
The average cost of affording funeral proceedings and the ceremonies after have spiked in the past decade. In 2016, the median cost of funerals was calculated to be $7,360. If you add the cost of a vault to it, it increases even more. And this figure excludes other miscellaneous expenses that add up along the way.
With the statistics in place, you can tell why affording decent funerals is also a privilege that’s hard to afford. Without a proper saving plan, it’s nearly impossible for a middle-income family to afford an event of this scale. Even with meager savings, you’d still have to stretch every dollar to make ends meet after the primary breadwinner has died. If you’re the only source of income for your family, you need to keep a realistic estimate of final expenses in mind.
What’s Preneed Insurance
This is a type of insurance plan that only covers costs related to the funeral service and burial rituals. It’s also commonly known as a prepaid funeral plan. The beneficiary, in this case, is the funeral home where all the proceedings will be conducted.
The products and services that this plan covers are not clearly outlined so there can be a difference in prices and additional bills to be paid for. That can put your family in a fix because they only have a specified amount of funds as death benefits to cover the costs.
Funeral homes also have a notorious reputation for mishandling the money paid to them by the insurance provider so you might want to consider that before signing the deal.
What’s Final Expense Insurance
Also known as burial insurance, this insurance plan covers more bases than just the funeral and burial expenses. It offers more flexible terms of agreement such as pay off your outstanding debts, choose your own beneficiary, pay probate fees and medical bills, as well as other miscellaneous expenses.
By selecting your own beneficiary, you can rest assured that the funds will go in the right hands. However, since this plan has a more comprehensive set of coverage needs, it needs to be paid for as a whole life policy. In addition to the benefits offered, the beneficiary can receive extra benefits in case of an unexpected death!
If you’re interested in finding out more about final expense insurance FL, get in touch with our insurance brokers or call us at (800) 381-1245. We can link you to the most trusted providers of term insurance Pinellas county.