You may be wondering why you would need such coverage, but it’s important to consider that in the case of sudden death, your loved ones might not have enough money to cover your final expenses. This article will introduce you to the world of final expense insurance.
What is Final Expense Insurance?
Final expense insurance is an insurance policy that can help pay for the costs of your final arrangements. It typically covers cremation, burial or entombment, and funeral expenses. You can include coverage for additional expenses, like legal and medical examiners’ fees. You can also add coverage that helps cover the cost of long-term care if you’re in a nursing home or assisted living facility.
A final expense policy is useful for people who have already put money away for their final arrangements but still need help covering the costs.
The Cost of Dying
We often hear about the rising costs of living, but what about the costs of dying? The good news is that there are lots of options when it comes to planning for end-of-life care. The bad news is that those options can get quite expensive.
What do the costs of dying look like in America? The average funeral costs about $7,360, but some people spend up to $20,000 on funerals and burials. Cremations are only slightly less cheap, running families a little over $6,000.
If you need end-of-life care, costs will typically be higher than average. People who died in hospice care spent an average of $17,845 in the final month of life. In-home care is generally charged hourly, and costs can range from $16 to $28 per hour. Health insurance coverage is typically minimal when it comes to long-term care, so if you’re close to dying and require long-term care (LTC), you may find yourself (or your loved ones) paying a pretty penny for these services.
The costs don’t stop once you or your loved one dies, either. After a death, the legal process that occurs is called probate. A probate attorney is hired to help with this process by providing legal advice, preparing documents, and filing them with the court. The fees associated with hiring a probate attorney can vary widely depending on where you live, but it’s important to remember that you are not required to hire an attorney for this process.
When someone dies and leaves behind an estate, many things must be done to settle the estate and distribute assets according to the decedent’s wishes. This includes paying off any debts owed by the deceased person before they died, paying any taxes due on those debts, paying any fees associated with probate litigation, and distributing assets according to specific instructions in a will or trust document.
Who Would Benefit from Final Expense Insurance?
As the name implies, final expense insurance is designed to help you cover your final expenses.
But who really benefits from it?
The answer is the people you leave behind.
You probably won’t reap the benefits of your policy (unless your policy has a cash value component), but those left behind—your loved ones—will benefit significantly. This is especially true if you have a large family. If your final expenses are covered by an insurance policy, you won’t have to worry about your kids or other relatives going into debt when they need money for funeral costs or other things related to your burial or cremation services.
If you have any questions about final expense insurance, don’t hesitate to reach out and speak with one of our experienced agents.