Why Should You Consider Buying Insurance for Final Expense


You most certainly already have taken steps to guarantee your family’s financial stability, such as putting up funds for pension and keeping life insurance active. So what about your loved ones after you’ve passed away? Many people imagine writing a will when it comes to funeral arrangements.

Why Should You Consider Buying Insurance for Final Expense

However, burial insurance is the best option to guarantee that your family can pay for your final expenses easily. According to Gary P Cubeta, the founder and creator of Insurance for Final Expense, the right policy can help your family after you depart. Here is everything you need to know beforehand.

What Is Funeral Insurance?

With funeral insurance, you ensure that your funeral costs are fully or partially reimbursed in the event of your death. That is great for your next of kin because a funeral costs around $8,000 in the USA. In a time of intense grief, your family won’t have to worry about your funeral cost and can focus on arranging your farewell if you buy this policy.

Types of funeral insurance

There are three types of funeral insurance:

● Combination Funeral Policy

It’s a package of services and products, usually combined with a freely available amount. With this amount, you can pay extra costs and special wishes. If you opt for in-kind insurance, you are tied to the insurer’s funeral home.

● The Endowment Insurance

In this kind of insurance plan, the next of kin can only spend the amount paid out for the funeral. You can choose a funeral director yourself or via the insurer.

● The Sum Policy

Surviving relatives receive a fixed amount that they can spend freely. So they can also go on holiday with the money.

Joint funeral insurance

You can take out insurance for your funeral together with your partner, but you both pay a premium. If you already have funeral insurance, you can also have your partner credited. Although it is something you would instead not think about, it is advisable to insure your child. You can often do this for free, and if you have to pay a premium, it is a low amount. When parents take funeral insurance for their child, this funeral policy can be taken over by the child at a certain age (usually at the age of 18 or 20).

The Advantages of Funeral Insurance:

You take out funeral insurance so that your next of kin do not have to pay the costs of your funeral. A funeral or burial also entails many arrangements that insurance can take off your hands. An insurance policy offers benefits like:

  • Satisfy a specific future need
  • Optimize and finance an expense that must be faced sooner or later, perhaps not only for oneself but also for a relative
  • Organize your funeral in advance in every single detail and according to your wishes
  • Be sure that their wishes will be respected
  • Relieve family members from the emotional and economic burden of organizing the funeral ceremony
  • Serenity, for themselves and their families, for having decided on an important event in their life

Other Reasons to Buy Funeral Insurance

With insurance for final expense policies, you can help your family members prepare for your funeral. A medical examination and the completion of a health questionnaire are not required to buy this policy.

Capital insured is higher than the sum of the premiums paid, and coverage continues immediately after the first premium payment. It offers a possibility to pay with a single premium or in installments, constant or indexed. The sums owed by the insurance company are foreclosure and non-seizure. Also, these sums are exempt from personal income tax and inheritance tax.

Funeral Costs

A funeral costs an average of 8,000 dollars. In 2021, you may have to pay on average between 7,000 and 10,000 dollars for a funeral. The exact costs depend on your wishes. A funeral is often more expensive than a cremation; a cremation costs an average of around 3,000 dollars. So, buying insurance for the final expense is always a good idea.

What Does Funeral Insurance Cost?

The cost of a funeral insurance policy depends on several factors:

  • Age: the age you are when you take out the insurance
  • Turnaround time: how long you want to pay a premium
  • Insured amount: the amount for your funeral

To Sum Up

Burial insurance is often purchased in addition to a life insurance policy. This is due to a need to allocate money to particular needs. They don’t want their heirs to use money from a life insurance fund to pay for an extravagant funeral. Given that a person’s death may result in various unexpected costs, such as medical bills, attorney’s fees, and even taxes, having a separate collection of funds set aside to cover each set of liabilities is a wise decision.


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