Why You Need a Final Expense Plan

You’ve worked your whole life to protect your family from financial hardship; Don’t let the steep cost of your funeral ruin that.

There is an upside to getting older that not a whole lot of people talk about. It’s experiencing the moment when your family is no longer dependent on your income for a comfortable life. Heck, if you’re doing it right, your kids could be making much more than you ever did.

The result is that our life insurance policies might seem less important all of a sudden. But the truth is that some forms of life insurance need to be maintained right up until the end.

Final Expense insurance is designed to cover just that, your final expenses. From your remaining medical bills to the cost of your funeral, your departure from this world comes with a hefty price tag. And with you no longer around to pay it, it’s going to come down on the people you love.  

Final Expense insurance policies are a lot cost-way to keep your family protected. Here’s what you need to know:

Hard truth: Your final expenses are going to be a lot more than you think

Even with careful planning, it can be easy for people to underestimate how much leftover debt they might be leaving behind. Maybe it’s a few thousand dollars on a couple of credit cards, or your monthly bills for the RV that you haven’t quite paid off. These debts might seem inconsequential, but when dropped at the feet of your loved ones, they can be debilitating.

That’s on top of the costs of giving you the type of funeral that you wanted, which, as you will see in the next section, is a lot more expensive than you might think. 

The surprising, rising costs of funerals

You might think that the cost of a simple, elegant funeral can’t be more than a few thousand dollars. But the cost of even the most basic ceremonies can be far greater once all the various fees are tallied. In fact, some industry experts predict that the average cost of a funeral could rise to $20,000 in the next decade.

Costs of a funeral with burial

According to the National Funeral Directors Association, the average funeral costs between $7,000 and $9,000. But this number is just the beginning: It doesn’t include things like obituaries, plot prices, monuments, or flowers. In addition, funeral providers can add a whole host of additional charges that can bring this number up significantly.

Costs of a funeral with cremation

The average cost of a funeral with cremation is slightly more affordable than a traditional funeral at about $6,200. But it’s important to note that this number doesn’t include the price of a cemetery monument, which in itself can cost thousands.

Should I pre-pay for my funeral?

There are a lot of funeral providers that offer pre-payment services. One of the potential risks of pre-paying directly is that the funds could be mis-managed, or they could simply go out of business. Paying for burial rights is another issue, in that it can be difficult to sell a burial plot if you change your mind.

Choosing a Final Expense insurance policy to protect your loved ones

Here are some things to remember when considering a Final Expense plan:

• Your credit card debts and car payments are going to be difficult enough for your family. Don’t give them the extra burden of paying for your funeral.
• Not everyone can qualify for good permanent life insurance; Final expense policies don’t require a medical exam
• Final expense insurance can protect your loved ones from the financial burden of your passing, making sure that the funeral that you want is bought & paid for
• Take the time to fully understand a final expense policy before purchasing. Your Personal Benefits Manager can help you comb through the fine print to find any potential issues.

If you have questions about final expense insurance, or you’re simply ready for a financial tune-up, give us a call. We’ll research the best-priced final expense plans available, so you can make an informed decision. 

Call 800-913-3416, or visit our website to schedule a free consult.

To your health and wealth,

Wiley P. Long, III
President – MediGap Advisors