Taking Care of Your Final Expense
Funeral insurance rate has gone up just like everything else. If you are worried about how your funeral will be paid for then you should consider one of the following options.
Burial insurance policies are one way of taking care of your funeral expenses so that your family doesn’t have to worry about that. You can make monthly payments on your funeral that may cost around $8000.00. This way your loved ones will have one less thing to deal with. They will already be stressed if they have to pay to travel, take time off work and handle the legal paperwork when you pass on. Losing a loved one is hard enough. You will take some of that strain away, by getting your funeral paid ahead of time.
This kind of insurance is sold by whole life insurance companies. Its easy to apply. These policies are usually made for older people between 50 & 80 years old. Some simple policies will ask you a few questions. Most people will be approved. If the type of policy is a “Guaranteed Issue” policy then that means that they won’t ask you any questions at all, instead they will use a waiting period. The way that works is that you have to live a certain number of years or months before they will pay for your funeral. If you pass way before then the money you paid in will be refunded with interest. That’s one way that they can keep your payments small.
Another type to look for is a “Simplified Issue” policy. Your payments will be cheaper and there’s no waiting period. If you are really sick or in a nursing home, then you will want the guaranteed issue policy. That way if you pass on during the waiting period, your loved ones will get a refund of your payments plus interest.
Insurance policies are not the only way for you to take care of the funeral cost. You could always save the money in a special bank account. If its in a savings account, then it will be earning interest. The problem with that is that it may be hard for some people on fixed income to save money, because they use it when things come up, like car repairs or other emergencies.
You could also take care of your funeral cost right at some funeral homes. They call these plans pre-need or pre-paid burials. This will work fine if you know which funeral home you want to go to. These plans don’t help cover the cost of anything but the funeral and burial. You will need to save money for family members to travel, or cover legal bills in a different place. In some cases, people have to pay interest to the funeral home. This may cost you a lot more than an insurance policy.
There are good things and bad things about each way to pay ahead for your funeral costs. You should meet with a professional who can help you decide what you can afford and what will work best for you and your loved ones.
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