Do I Need Funeral Insurance?

burial insuranceWith the cost of the average funeral continuing to climb, you may be wondering if you need to consider funeral insurance. Also known as burial insurance or final expense insurance, funeral insurance helps pay for your funeral and all costs associated with it. However, there are several issues you need to consider before you make a decision. 
Your Final WishesIn some areas, your family can have you cremated and placed into an urn for under a thousand dollars, with a potluck immediately following. If you don’t want a traditional service, burial plot, viewing, or a niche in a columbarium, you may not need insurance. For those who would like a more traditional remembrance, costs can quickly get out of hand.

Your Savings Account

As with all insurances, you don’t need it if you can pay for it when the time comes. For example, if you have a large savings account earmarked for your funeral and burial, your survivors can simply write a check to pay for your final expenses. However, be aware that you may be required to spend down your savings for end-of-life care. Carefully consider your finances before reaching a decision, and always think of possible roadblocks in your plan.

Considering Your Age

Burial insurance can be a great idea for those who do not expect their life to end anytime soon. The reason being is that younger people often have life insurance to help pay for their children’s educations, to support a surviving spouse or to pay off the family house. The cost of a funeral eats away at that amount and may not be paid out for months down the road, especially if you pass away in an accident. Funeral insurance will help keep your life insurance payout intact for your heirs.

Religious Preferences and Beliefs

While this is not an issue everyone needs to consider, it is very important to think about what your religion and personal beliefs of your spouse say about burial and handling of the dead. Some religions have very specific rules concerning the preparation of the body and its disposal, which can cause costs to rise exponentially.

While no one likes to think about their own death, planning for the future will help your heirs be more financial prepared for the inevitable. Consider dovetailing funeral insurance with your life insurance to make certain all of your final expenses and responsibilities will be covered.

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