Most people do not enjoy discussing funerals, burial costs, or what will happen after they pass away. However, avoiding the conversation can leave your loved ones with difficult decisions and unexpected expenses during an already emotional time.
A little preparation today can help protect your family tomorrow. Here are seven common funeral-planning mistakes—and how Final Expense Insurance may help.
1. Assuming Your Family Can Easily Cover the Cost
Many people believe their children or other relatives will be able to pay for their funeral. Unfortunately, even a close family may not have thousands of dollars readily available when the time comes.
Without a financial plan, loved ones might have to:
- Use their personal savings
- Charge expenses to credit cards
- Borrow money
- Sell personal belongings
- Ask relatives for assistance
- Create an online fundraiser
Planning ahead can reduce that financial pressure.
2. Underestimating the Total Expense
A funeral involves more than purchasing a casket or paying for cremation. Depending on the arrangements, the total cost may include:
- Funeral-home services
- Transportation
- Preparation of the body
- Viewing or visitation
- Memorial services
- Burial plot
- Grave opening and closing
- Headstone or marker
- Flowers and printed programs
- Death certificates
- Travel expenses for relatives
Small expenses can quickly add up. Your plan should consider the complete arrangement you want, not just one or two major items.
3. Believing Employer Life Insurance Will Always Be Available
Life insurance provided through an employer can be valuable, but it may not remain with you permanently. Coverage could change or end when you retire, leave your position, reduce your hours, or lose your job.
Review your employee benefits carefully and ask whether the policy is portable. Having individually owned coverage can provide additional protection that is not tied to your employment.
4. Depending Entirely on Savings
Savings can help pay for final expenses, but that money may be needed for medical care, household bills, emergencies, or retirement expenses.
There is also no guarantee the full amount will remain available. A major repair, health problem, or other unexpected expense could reduce your savings.
Final Expense Insurance can provide a separate source of funds for your beneficiary if the policy remains active and the claim qualifies under its terms.
5. Waiting Until Your Health Changes
People often delay purchasing life insurance because they feel healthy today. However, age and health can affect eligibility, policy options, and premiums.
Waiting until after a serious diagnosis may limit the coverage available to you. Applying sooner could provide more options, although approval and rates are never guaranteed.
The best time to explore coverage is before your family urgently needs it.
6. Choosing Coverage Based Only on the Lowest Price
An affordable premium is important, but price should not be the only factor. A policy with the lowest monthly payment may not provide the benefits or coverage amount you expect.
Before applying, ask questions such as:
- Is the death benefit immediate or graded?
- Is there a waiting period?
- Will the premium remain level?
- Can the coverage amount decrease?
- What exclusions or limitations apply?
- What happens if a payment is missed?
- Who should be named as the beneficiary?
A licensed insurance agent can explain the policy details and help you compare your available options.
7. Failing to Tell Anyone About the Policy
Purchasing insurance is only part of the planning process. Your beneficiary should know that the policy exists and how to locate the necessary information.
Keep your policy documents in a secure but accessible place. Make sure a trusted person knows:
- The insurance company’s name
- Your policy number
- Where the documents are stored
- The name and contact information of your insurance agent
- Your general funeral or memorial preferences
Your family should not have to search for important information during a crisis.
How Final Expense Insurance May Help
Final Expense Insurance is generally a form of whole life insurance designed to provide a cash benefit after the insured person passes away.
The beneficiary may use the proceeds for funeral arrangements, burial or cremation, medical bills, personal debts, and other financial needs.
Some plans may not require a medical examination, although health questions and eligibility requirements can apply. Coverage options, premiums, waiting periods, and benefits vary according to the applicant, policy, insurance company, and state.
Give Your Family a Plan—Not a Financial Burden
Planning for final expenses is an act of love. It can give you greater control over your wishes while helping your family avoid difficult financial decisions.
You do not need to figure everything out alone. A licensed insurance agent can review your needs, answer your questions, and explain the coverage that may be available.
Call DeMont Moret today at 888-287-0605 for a free Final Expense Insurance consultation.
Take the first step toward protecting the people you love.
Coverage, premiums, eligibility, and benefits vary by applicant, insurance company, policy, and state. Policy exclusions, limitations, and waiting periods may apply.
