People pay for their funeral expenses in several ways. Social Security and final expense insurance are two such ways you can leverage to cover funeral expenses.
Social Security and its Contribution towards Funeral Costs
Social Security offers survivor (of the deceased) advantages and partially helps to pay for funeral costs.
The Social Security (SS) Administration will provide a $255 one-time payment to a surviving child or spouse of the deceased person, called a special death payment (lump sum).
However, there are particular requirements that you have to meet to be eligible for this social security benefit:
- The spouse should have been residing with the deceased individual or collecting particular social security gains on the record of that person.
- If the deceased does not have a surviving other half, the social security payment will go to a child who qualifies for benefits on the deceased’s record in the month of demise.
After considering how much a funeral can cost, you would think that $255 from Social Security is a welcoming gesture. However, this modest sum might only cover a few flower arrangements, and that is all.
That is why you would need final expense insurance apart from social security benefits for funeral expenses.
Final Expense Insurance
You need to know the following things about final expense insurance:
- Does not require a medical examination
- Your premiums depend on your age, gender, and smoking status
- You are certain to have your application approved
- Available only for individuals for who fall in the age bracket of 50-80
- You can get approval in just 24 hours
- Final expense insurance policies can range from 2000 dollars to 15000
- Your premiums will not go up with time
You can make use of the final expense insurance (along with the social security benefit) to cover the funeral’s cost or to pay for any of the outstanding final expenses at a small fraction of their actual expense.
When you are looking to buy a final expense insurance policy to pay for funeral expenses, you should pay particular attention to the price and fine print. The price is critical because such an insurance policy ought to be the last policy you ever purchase. Ensure that the price falls in your budget so that you do not have to concern yourself regarding missing a payment.
Do not expect a one size fits all solution when it comes to final expense insurance policies. Collaborate with an insurance agent who can provide you various quotes from several insurance companies. This will help you to zero in on the policy that is ideal for your requirements.
Reach out to us if you would like to buy a final expense insurance policy to give you peace of mind.