Nobody wants to think about what happens after they pass away, but the fact is, there are a lot of financial matters involved that are best taken care of before that happens. The worst thing that can happen is to die unexpectedly, with nothing in place, and leave your loved ones with a big financial headache on top of their grief.
I recently experienced the loss of my mother, and I can say wholeheartedly that I was in no shape immediately after her passing to think my way through all the things that needed to be done. Luckily for me, my mom planned ahead, at least a little. She bought a small insurance policy specifically for final expenses. With one phone call, the company took care of the bill at the funeral home, and sent me the remainder of the policy funds. I didn’t have to worry about writing a check on the day I received her ashes. Trust me, that day was hard enough.
Life Insurance vs Final Expenses Policies
My mom chose the final expenses type of policy because she couldn’t afford a regular life insurance policy. She didn’t work, and lived off of meager Medicare funds. She was also a lifetime smoker, so her premiums for life insurance would have been very high. This policy was under $50 a month, and she paid it diligently because she adamantly did not want to be a burden on me and my family. The final expenses policy paid the funeral home directly, while a regular life insurance policy would have been sent to me, and I would have paid the funeral home from that. I may have had to pay the funeral home first, which could have been a problem if I didn’t have the money.
For any policy that includes life insurance or just final expenses, the cost will be determined usually by the person’s age and health status. Therefore, it is generally much cheaper to put in place when you are still young and healthy. This is the same for insurance such as long term care and health insurance. The earlier the better, before you have health issues that will drive up the cost.
As always, when looking for a policy, shop around first. Compare what you will get out of it as well as the overall cost. Buying while it is still relatively low cost will give you peace of mind, knowing you are taking a big financial weight off of the loved ones you leave behind. Take it from me, the weight of their grief is heavy enough.