You would do anything to protect your family, and that may include protecting their financial future using budgeting apps and savings tools and budgeting for final expense insurance. However, have you thought about all of the ways that purchasing a final expense insurance policy can protect you and your loved ones? If not, you could be missing a key element towards achieving financial freedom.
Covering Funeral Costs
The main reason you should consider final expense insurance, also known as burial insurance, is to help your loved ones with funeral costs. To decide how much coverage you should purchase, you will need to sit down and think about what sort of final arrangements you would prefer if you should pass away. You can use a funeral planning guide to work through the details of your own funeral and figure out how much your family will need to cover these arrangements. You can also find a breakdown of average funeral expenses online, to help you with planning.
Paying Off Leftover Debts
Another reason to that budgeting for final expense insurance is important is to avoid leaving behind unpaid personal debt, which could be passed on to your family members. From student loans to credit cards, the average amount of post-death debt in America is a shocking $61,554. While your estate will generally cover these leftover debts, without insurance your family could be left to negotiate with creditors and lenders. In community property states, spouses are responsible for the leftover debt. Final expense insurance can help offset these costs, so long as you have enough coverage.
Managing Medical Bills
You may have noticed that the $61,554 mentioned above does not include medical bills. While those who live in other countries may not have to worry as much about covering medical expenses after death, in the United States the cost of dying can be even higher than the average funeral costs. While figures vary by state, most people end up leaving behind at least $11,000 in medical bills after death. Leftover medical bills can also be handed down to spouses in community property states, but thankfully, burial insurance can also help with these costs.
Reducing Emotional Stress
Losing a loved one is already one of the most stressful events a person can go through. So, if you were to pass away without any insurance coverage, your family could end up dealing with even more financial stress on top of the grief they already feel. Even if your loved ones are not responsible for paying off your leftover debts and expenses, dealing with creditors can be draining, even in Canada. By purchasing final expense insurance and creating an estate plan, you can reduce this emotional duress for your loved ones during an already painful experience.
Providing Peace of Mind
Final expense insurance can provide a little bit of comfort for your loved ones during one of their darkest moments but it can also provide you with some peace of mind. By purchasing a final expense policy, you can rest assured that your family will have a financial cushion to fall back on if the unthinkable should happen to you.
Budgeting For Final Expense Insurance Is Affordable
Final expense insurance can be an affordable and simple way to ensure your family is protected no matter what happens to you. So, if you want to plan a stable financial future for your loved ones, be sure to include a final expense insurance plan in your budget.
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