Thinking about the costs for your own burial or funeral is never easy. Nor is it easy to have such a conversation with family members. However, the last thing you want is to leave your loved ones with those expenses to worry about, especially at a time when they are mourning your recent passing.
That is why preparing ahead by investing in burial insurance is vital. Often, such insurance also includes some medical expense coverage to assist you and your family as well. However, policies differ in terms of the exact benefits they offer.
You may worry about purchasing final expense coverage. For example, you may wonder if you can afford the costs associated with final expense coverage. You may also wonder what types of coverage are available to you. Here are the answers to those questions and more.
In the United States, it is common for funerals to cost more than 12,000. Those expenses often do not include other related costs, such as end-of-life hospice care prior to death. Preparing for all such costs is vital. Doing so prevents your family from incurring unnecessary debts.
The first issue to consider when you select final expense insurance is what type of types of expenses the policy you select covers. Every company provides differing levels of coverage. However, expenses a policy may pay for can include more than funeral and burial costs. It may also pay for costs associated with:
- Medical Bills Incurred Prior to Death
- Other Unpaid Bills
- Obituary Publication
- Cremation
- Memorial Services
- Celebration of Life Events
The second consideration is how much money the policy provides for each expense. The amount issued is determined by such factors as:
- Age at Time of Enrollment
- Health Status When You Apply
- General Coverage Calculation Policies of the Company Providing the Coverage
The premium payment amount you need to pay monthly is another issue to think about. Your chosen insurance company may charge a higher monthly premium if you purchase end-of-life coverage at an older age. If you purchase it when you are younger, you are not considered to have as many health risk factors as an older adult. Therefore, you may qualify for a lower premium.
You can save money by purchasing an end-of-life insurance policy at a younger age. However, purchasing it as a senior citizen does not preclude you from finding a deal. All you have to do is compare the policies offered by multiple companies. Then you can choose the one that most fits your budget and needs.
Final expense insurance and life insurance assist loved ones in your final days of life and after your passing, but their purposes are not the same. Final expense insurance provides less monetary compensation than life insurance, typically.
Life insurance funds are also used for many more purposes than final expense funds. Read the following slides to understand more about how the two vary.
