Why Final Expense Coverage Should Be Part of Your Insurance Essentials
Guest Blog by Jim Vogel of elderaction.org
Life is full of unpleasant surprises, and preparedness is the key to taking them in stride. Along those lines, it’s important to make plans for the worst possibilities, especially if you have people who love and depend on you. Final expense coverage offers unique protection should you meet an untimely demise, and it should be part of your insurance essentials. Here’s what you need to know.
Part of a Well-Planned Safety Net
Chances are you have a handful of insurance policies that are part of your normal financial protections. Car insurance, homeowners or renters insurance, health insurance, and life insurance are all pretty standard for most households.
This isn’t just a basic part of adulting—there’s a great reason for this! Forbes explains these policies provide financial security and peace of mind to those who invest in them. Those bills come through on a routine basis, but you probably don’t give them a lot of thought unless something happens. However if a tree limb falls on your house or your teen is in a fender bender, those insurance policies are front and center. They help you navigate the calamity with a cooler mind, knowing you have help getting through it and putting life back in order.
Along those same lines, a final expense plan provides peace of mind to your loved ones when your time comes. Instead of worrying about where the money will come from to take care of necessities, they can focus on healing from the tragedy.
Funerals are not cheap. In fact, Huffington Post says the average funeral runs $11,000 or more these days. Many families simply don’t have that money handy, and standard life insurance policies can take time to payout.
There are some ways you can keep the costs down, like shopping with different funeral homes and pricing out various options, but chances are that in the turmoil of the moment, your loved ones won’t feel much like doing that. On top of that, the unfortunate truth is that many funeral homes will use high-pressure sales tactics to get your survivors to overspend.
It’s easy to see that families can get bogged down financially on top of their emotional loss. However, final expense insurance offers an immediate payout, and some policies offer over $20,000 in coverage. The beneficiaries can use that money toward medical expenses and other debts you leave behind, as well as for the funeral itself.
Before you dive into a policy, do some investigating. Not all insurers are created equal, and you can check the Better Business Bureau to see what other policyholders have to say. For instance, Lincoln Heritage Funeral Advantage reviews indicate these policies are best for those under the age of 70 and needing $20,000 or less in coverage. Regardless of which provider you choose, a little looking will tell you a lot about whether a policy will fit your needs or not!
Once you settle on a provider, you’ll have to determine how much coverage your policy should offer. The best way to do this is to shop around with funeral homes for a price comparison so you know what your loved ones would otherwise be left to tackle. You can figure out what average costs are in your area, what services and fees are important to you, and crunch some numbers. Also, consider how much pressing debt you might leave behind. You’ll want enough coverage for your loved ones to handle whatever pops up before your life insurance pays out.
While final expense insurance probably isn’t at the top of your wish list, it’s an important part of adulting. When evaluating your insurance essentials, make sure you include it on your priorities. It’s a simple and inexpensive way to help your loved ones and give yourself some peace of mind.