Life insurance policies cover many final expenses, including mortgages, monthly bills, funeral costs, medical expenses, and much more. When applying for a life insurance policy, you must keep in mind what final expenses you need to be covered to determine your policy’s size.
Not all of these expenses are applicable or even necessary to your situation. There might be expenses excluded from this list that you want to account for in your final expense plan. No matter the case, here are some of the most common final expenses you may want to consider.
#1: Funeral and Burial Expenses
One of the most obvious yet overlooked final expenses is the cost of a funeral. According to the National Funeral Directors Association, the average funeral can cost between $5,000 and $10,000, depending on the chosen arrangements.
So, when planning for final expenses, be sure to keep factor in you or your loved one’s desired funeral arrangements and their potential cost.
#2: College Tuition
As a parent or grandparent, you probably have loved ones with outstanding student debt. Tuition can be between $9,000 and $40,000, and even more for graduate or post-college education.
If you hope to help your loved ones pay off some or all of their loans, accounting for it in your life insurance policy is a great way to relieve this burden.
#3: Day-to-Day Bills and Expenses
Especially if you have dependent children or adults in your household, accounting for their day-to-day needs once you are gone is incredibly important.
These loved ones may rely on your income or retirement benefits for their well being. If that’s the case, you should consider financing them with enough money to allow time to either make new financial arrangements or provide them with enough funds to last long-term.
#4: Child and/or Dependent Care
Like the previous point, you should consider the medical, educational, or daycare required for dependents or children in your family.
Someone has to watch these loved ones once you are gone, and often other family or friends are unable to do so on a long-term, consistent basis. In that case, you should account for the cost of education (especially for special needs children/adults) and/or daycare.
#5: Medical Expenses
Sometimes, the children/dependent members of your household also require specialized medical care. This is mostly applicable to special needs individuals.
If that’s the case, you may also want to account for their medical expenses in your final costs and life insurance policy.
Alternatively, maybe you have personal outstanding medical expenses that you don’t want to leave for your loved ones once you’ve died. Or, perhaps a loved one outside of your immediate care has serious health issues that you want to contribute money towards.
These are all, of course, only possible scenarios—they may or may not apply to you, and there are many other situations in which you may want to ensure final medical expenses, all of which depend on your specific wants and needs.
#6: Mortgage and Estate Planning
You may still be making payments on your home’s mortgage by the end of your life—it is an unfortunate circumstance and one that you likely do not want to pass on to your loved ones once you have passed on.
Estate planning is the process your loved ones must go through to arrange all of these final expenses—from your mortgage to any other expenses on this list. Essentially, it involves the hiring of an attorney to close out remaining accounts in your name, report your death to the IRS, and all of the legalities involved.
#7: Co-Signed Debts
Co-signing is when you are held accountable for someone else’s debts or payable accounts. However, if you pass away while a part of a co-signed contract, the person you signed for will be fully accountable for the debt.
For all of your co-signed contracts, you may want to make a spot for them in your life insurance policy. This way, those on the contract with you’re not left strung out to cover a loan they could otherwise not be held responsible for on their own.
#8: Charitable Donations
Sometimes, you may feel generous with extra funds in your life insurance policy that you want to contribute to something worthwhile. In that case, you may consider adding a charitable donation to your list of final expenses.
We understand that extra money is not easy to come by. However, if you do feel you want to, here are some of the top-rated charity for you to choose from:
- Relief International
- Scholarship America
- Heart to Heart International
- St. Jude’s Children Hospital
- The Alzheimer’s Association
- Prevent Child Abuse America
- Leukemia & Lymphoma Society
- The Breast Cancer Research Foundation
- The New York Times Neediest Cases Fund
Don’t Let Final Expenses Be a Burden on You and Your Family.
Finding a way to pay for all of these final expenses can be incredibly stressful for the people in your life, especially yourself. Whether you’re considering life insurance for yourself or a loved one, you want to be sure that you’re getting the best policy for the expenses you need to be covered.
Your search for affordable and comprehensive life insurance ends here. With the help of our understanding and licensed agents, you can rest peacefully knowing that you’re getting the best insurance on the market.
With our BBB approved A+ rating and access to 15+ insurance carriers, you’re truly working with the best. For your free, quick, and easy quote, call Senior Life Services at (800) 548-3249.