Life Insurance For Your Final Expenses
Final expenses can be a huge burden for a family who is unprepared to pay for them. Nowadays, even simple funerals and burials can cost several thousand dollars, and these numbers are still on the rise. Fortunately, life insurance can help.
Any life insurance death benefit can be used to help pay for final expenses. Some life insurance policies — typically Guaranteed Acceptance Life Insurance — are referred to as "Final Expense" policies. We'll discuss this in more detail below. Guaranteed Acceptance Life Insurance policies are often the last resort for consumers who are unable to qualify for traditional life insurance policies.
Final Expense Life Insurance/Guaranteed Acceptance Life Insurance policies are not the same as "Funeral Insurance," which is typically sold through funeral homes for specific services to be provided by the specific funeral home.
Keep reading to learn more about the benefits of Guaranteed Acceptance Life Insurance and your coverage options for final expenses.
The Cost of Dying
Depending on where you live, the average cost of a funeral in the United States can range anywhere from $7,000 to $10,000. Cremation can be a more affordable option, but even the least expensive cremation with a memorial service can still cost your family several thousand dollars.
Below is a list of the average funeral costs per service in the United States as of September 2017, according to Parting.com:
- Funeral director’s service: $1,500
- Casket: $2,300
- Embalming: $500
- Using a Funeral Home for Service: $500
- Gravesite: $1,000
- Grave digging: $600
- Burial vault: $1,000
- Headstone: $1,500
Total cost: $8,900
Keep in mind that these numbers are an estimate, and prices could be significantly more or less depending on your location and the providers you choose.
Your Life Insurance Options
When it comes to covering the cost of your funeral, you have several life insurance options, which include:
Guaranteed Acceptance Life Insurance. These policies do not require any medical exams or answers to health questions and they offer low coverage amounts for individuals who are seeking to leave funds behind to address their final expenses.
Term Life Insurance. If you only need coverage for a specific amount of time, a term life insurance policy might be all you need. Term Life Insurance will pay your beneficiaries a death benefit if you die within the specified time period (or “term”) of the policy. Your beneficiaries could choose to use a portion of the death benefit to help pay for your final expenses.
Whole Life Insurance. Although fully underwritten Whole Life Insurance policies can have much higher death benefits than a Guaranteed Acceptance Life Insurance policy, they can still be used to help pay for final expenses. Because these plans last your entire life, they are almost always more expensive than Term Life Insurance policies. Whole Life Insurance policies also accrue cash value that you can borrow from. Withdrawals and/or loans can reduce or deplete the death benefit or may result in other consequences.
How Much Life Insurance Do You Need?
If you have questions and would prefer to speak to a licensed life insurance agent about Guaranteed Acceptance Life Insurance, give us a call at 1-855-303-4640.*