Even though death is a sure thing, our end-of-life care and funeral expenses often suffer from lack of planning. Of course, no one likes to think about these sad events, but to let the decisions and financial burden pass on to your loved one is also undesirable. As many financially-savvy people are entering their later years, it becomes increasingly important to have some of these decisions worked out ahead of time. Very often, left unplanned, they will be passed on to people you care about during a time of bereavement. The high cost of funerals and burials can also come as a shock at times like this. For these reasons, the peace of mind that comes with burial and funeral insurance can be a great gift to the ones you love, even if you are relatively young and healthy.
Insurance of this type is typically available to people over the age of 50. Premiums are not typically very high, and can provide coverage anywhere from $1000 to $10,000, or even more. Because funeral expenses can quickly add up, these funds can come as great relief to loved ones in their time of grief. When you combine the cost of casket, burial vault, funeral home preparation costs, graveside and burial expenses, flowers, and funeral/limousine services, the overall cost can be well over $10,000. For this reason, some life insurance, funeral insurance, or a combination of the two is a responsible step in planning the future of you and your family.
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If you are considering this option, take advantage of pre-planning services offered by many funeral homes. Funeral directors will sit down with you and walk you through the costs of a typical funeral and burial. Funeral homes are required by law to make the full cost of these services available well in advance of their need, so that there are no surprises. Simply taking a look at the numbers and figuring out what your wishes are can relieve a lot of worry about such matters. Talk with the director about alternatives to insurance such as pre-pay. While this may not be an option for everyone, pre-paying for your funeral locks in the price, so that you and your family never have to pay more down the road.
While this is an attractive option, funeral insurance presents other benefits. For one, your beneficiary is legally able to use the money however he or she wants, as this is a type of life insurance. Make sure your plans are clear and that your beneficiary is in agreement, but it is possible to get a higher amount of funeral insurance than you will need for your burial and service, and let your beneficiary “keep the change”, so to speak.
Whatever you decide to do with regard to planning for your funeral and burial costs, the thought you give to this matter will alleviate a lot of stress and worry for your loved ones in the future. As the cost of the average funeral continues to rise, it is best to work out these matters well in advance. The result will be peace of mind for you and your family, and security for your future as well as their own. Visit APIA for more information about burial and other insurance types available for you and the ones you love.