Ben Franklin once remarked in a letter in 1789, “In this world, nothing can be said to be certain, except death and taxes.” Everything else is just temporary. We never know what is in the store for us the next moment, and what could be our last moment. Both situations can leave huge bills that have to be paid no matter what.
Despite science and technology making so much progress, we have never been able to find a way to escape death, which is just inevitable. Thus, when death is inevitable one or the other day, we need to be prepared well for the expenses to be incurred following it. This is where funeral insurance comes into the picture and is popular these days, especially in the western world.
What is Final Expense Insurance?
As the name suggests, it is an insurance policy wherein you are insuring your funeral. The said insurance ensures that all the costs incurred on the last rites of the person are covered without causing any hassles.
Each year, the expenses of conducting a funeral have been rising considerably. It fits true not just in the United States, but across the world. Experts have often talked about how in the past ten years alone, the median cost of laying loved ones has increased by over a third. In such a case, it is a burden on the family members to bear the expenses.
The Reason For Rising Funeral Costs
An article on Forbes explained why the costs of a funeral are rising across the world. They stated that some of the reasons for increasing costs include monetary inflation and the increasing overhead costs. Not only that, but it also goes on to say that in the earlier days, funerals were conducted at homes. However, over the years, people started becoming more sensitive towards maintaining social privacy and personal hygiene. Because of this, the process of conducting final rights was moved to designated areas, which raised the costs of funerals.
Today, when one talks of the funeral process, some of the usual expenses include the funeral director, headstone, embalming, casket, gravesite, and grave-digging services, etc. According to the National Funeral Directors Association, this includes well over $7,360 (which is a massive cost by all means). The prices can also go up to $8,755 in some cases.
In such situations, instead of putting all the financial burden on the loved ones, if we have final expense insurance, it will cover the maximum costs of conducting a funeral. Before you opt for the final expense insurance, here are the ten things that you should know about it.
1. What Are The Intangible Gains Of Final Expense Insurance Cover?
Finances are not the only aspect that you need to consider for the Final Expense cover. These aspects include stress, time, energy, and peace of mind. Foremost, the insurance will assist you in easing the burden of the grieving loved ones. Moreover, you will be rest assured that your last ceremony will represent your actual values.
2. When Can You Avail It?
There is no age window when you can opt for final expense insurance. However, there are some beautiful prints that you must be aware of. For example, if you are buying the premium at a young age, the amount of the policy will be lower. However, if you opt for the insurance at a later stage or an old age, then the insurance company is taking a risk, and naturally, the premium amount will be higher.
If you start at an old age, the company will be able to gather a minimal amount in terms of the principal amount compared to the amount it would have collected if you had started at a young age. Also, the premium amount will not change irrespective of your age. So, check with your insurance provider before opting for the cover.
3. Do You Need To Have Medical Fitness To Avail The Insurance?
In most cases, there is no need to take any medical examination to take up the cover. Not only that, but your policy will also remain intact even if there is a change in health after you have taken the cover. The cover is meant for those people who are deficient in health, which means that a tiny portion of the policy will be available during the initial few years of coverage.
4. Accidental Death Of A Funeral Expense Policy Holder
In case of accidental deaths, there may also be additional benefits, depending upon the person’s age and several factors. However, these benefits vary across service providers and their coverage plans. Hence, you can explore all the open care final expense plans before settling for any cover.
5. Can We Have A Nominee?
Unlike preneed and prepaid funeral packages, you are allowed to have a nominee of your choice if you opt for funeral insurance. Usually, people choose a relative or the partner as the beneficiary, to make sure that the funds are appropriately distributed, and the instructions are correctly followed.
6. What is The Waiting Period?
Unlike regular insurances where you have to wait for a specific period to avail your claim, you immediately get the final amount in most cases of final expense insurances. However, it is advisable to talk about any terms and conditions that come with each plan. You can check the same with any insurance provider.
7. What Is The Minimum And Maximum Claim?
Similar to other insurance types, even funeral insurance has some aspects to consider, for each policy will have a different and fixed premium amount that you need to check with your service provider. However, rest assured that the claim amount will be higher than the premium that you might have paid.
8. How Is It Different From Savings?
Saving money for final expenses might not always be a good idea. No matter how much money you might have collected through your income, a single stint in a hospital can burn all the cash in a single moment. However, if you are covered under insurance, it will ensure that uncertainties and fluctuations in health are not making a hole in your pocket.
9. Life Insurance Policy Versus Funeral Insurance
Final expense insurance is also an insurance policy that has been crafted to cover only the funeral expenses. However, people still opt for funeral insurance despite having a life insurance policy. It accompanies the regular coverage, and the beneficiaries do not have to take money out of the general life insurance to cover final expenses.
10. The Ultimate Reason To Opt For Funeral Insurance
No matter how rich you are, you never know what is in store the next moment and when we might lose all the money. In such a case, if you have final expense insurance, you can be rest assured that your funeral needs are not a burden on your closed one’s shoulders.
While we live with pride, your death should never be a burden on the closed ones. In such cases, final expense insurances make sure that you depart the planet with dignity and independence. Thus, it is advisable to research thoroughly and buy funeral insurance to fulfill your vital needs.