(Because ain’t nobody got time for debt in the afterlife)
Andrew Bowsher|July 16, 2018
Not everyone needs a big lavish funeral worthy of an ancient Egyptian boy-king. But, these days, even an average funeral could cost you as much as a gently used sedan.
No worries, though. Our independent agents are here to help put your concerns to rest by finding the right funeral expense insurance options for your needs and protecting your loved ones from shouldering the burden.
Just like a wedding, the cost of a funeral today depends entirely on how much you want to show off. When all is said and done, literally, an average funeral costs around $10,000. And that’s only an average. With a price tag like that, it’s no wonder people have increasingly opted for cremation and other, less costly ways to say goodbye.
And THAT is why there’s funeral expense insurance.
What Is Funeral Expense Insurance?
Simply put, a funeral expense insurance policy is a contract between you and the benefit provider where you pay them now—or monthly—and they pay for your funeral later. Hopefully much, much later.
What Does Funeral Expense Insurance Cover?
It really depends on lots of things. The first is which form of funeral expense insurance you choose. With funeral expense insurance, though, you have a couple of different types of policies to choose from. And here they are:
Preneed insurance: AKA prearrangement AKA prepaid funeral insurance, this is purchased through a licensed agent who’s associated with a funeral home. Basically, the funeral home is your beneficiary. Then you pick out all the sweet funeral swag YOU want and pay it off based on the agreed terms of the policy.
Final expense (or burial) Insurance: This is purchased through an insurance company, typically with a whole life benefit. Because it doesn’t have the same increasing benefit as preneed insurance, this type of policy usually comes with a lower premium. After death, your beneficiary(s) get the funds and make arrangements in any manner they see fit, from paying off medical bills to legal fees.
Second, it depends on how much you think you need—and now’s not the time to be modest, we recommend aiming high.
And last, it depends on what your beneficiary does with it. Ideally, you have talked this responsibility through with them, as well as your wishes, before the time comes.
Why Should I Buy Funeral Expense Insurance?
Simply to be prepared, especially if you “go before your expiration date.” Unless you were a real jerk, your family will no doubt be super-sad and distraught, have trouble sleeping, and worse.
You don’t want to tarnish their final image of you with bad thoughts about all the junk you left for them to figure out and a massive bill. Take care of it now and when it happens, they’ll all sit back and say, “Man, what a great guy or gal he or she was.”
How Much Does Funeral Expense Insurance Cost?
It depends entirely on the policy, but anywhere from $10/month to $100/month. Preneed policy premiums are entirely dependent on the services and options you choose and will become more expensive the longer you stretch the policy out.
On the other hand, final expense insurance is based on the coverage you select with premiums that increase each year on a term life policy. The best way to get a good, clear snapshot of costs is to visit a funeral home, or two or three, to go over the numbers. All funeral homes are required to provide you with a printout of their costs.
What’s the Difference Between Final Expense Insurance and Life Insurance?
At its core, the only difference is your intent. Final expense insurance is a form of life insurance, it’s just that it’s a policy you purchase with the sole purpose of covering your funeral costs.
Since the goal is purely to handle expenses for your funeral, the policies are created to provide less benefits for payout. This, in turn, makes them cost less than what most folks commonly consider a “life insurance policy.”
Fun Funeral (Insurance) Fact: You can have a cute little burial policy in your left pocket and, at the same time, have a nice, big chunky life insurance policy in your right. Whatever you want, boss.
Comparing Funeral Expense Insurance Policies
Our agents will review your needs and help you evaluate which type of funeral expense insurance makes the most sense for you. They'll also compare policies and quotes from multiple insurance carriers to make sure you have the right protection in place. For you and your family.
Sweet Benefits of an Independent Agent
Insurance policies can be complex and searching through options can be confusing, time-consuming and frustrating. An independent agent's role is to simplify the process.
They’ll make sure you get the right coverage that meets your unique needs. Not only that, they’ll break down all the jargon and explain the nitty-gritty, so you understand exactly what you're getting.