Average Funeral Costs Have Been Rising
he sum of your final expenses depends on where you live and what type of final arrangements you want. Funeral expenses have been gradually increasing since the 1980s. The average funeral can cost up to 7000$ to $10000 or more. It depends on whether the body is buried or cremated.
However, many families tend to overspend on funeral costs because they often have to make on-the-spot decisions and they don’t have prior experience in funeral planning.
Funeral Insurance Costs
While many people underestimate how expensive a funeral or cremation service can be, final expense life insurance, aka funeral insurance, can help. Even a simple policy can help cover essential burial costs and get you rid of an exquisite financial burden.
The rates increase as you get older, so most seniors obtain coverage early on to secure a lower rate. The average monthly rates per policy are between $30-$70, depending on your sex, age, health, amount of coverage, and the insurance company you select. If you have serious health conditions or are over age 70, your monthly premium will likely be higher. Expense insurance premiums can be $70-$120, although they could be less.
Be aware that life insurance rates can be higher if you are a smoker. Tobacco rates are typically 30% higher than non-tobacco rates. All these factors can affect your premium rate increase.
Final expense insurance policies typically have lower death benefit amounts compared to other types of life insurance, with most policies being under $50,000. The average policy payout is typically in the range of $10,000 to $20,000.
Younger policy seekers who are in good health might qualify for rates between $20-$50 a month. A lower rate typically comes with fewer features and benefits for remaining loved ones. Spending a little extra each month could greatly impact the support your family gets when you’re gone.
You can also use a funeral cost calculator to determine the exact amount of your burial costs, which can give a peace of mind. Be aware that costs can differ from one insurance company to other, and it also depends on the type of policy you are choosing.
Reasons To Consider Final Expense Insurance
This type of permanent insurance has affordable policies for seniors. If premiums are paid, the policy doesn’t expire, and it acquires a cash value over time. Even if you’ve had health issues in the past, you’re likely to still get coverage.
But anyone — not just seniors — can take out a life insurance policy who is anxious about leaving their family unprepared and with possible outstanding debts when they pass away. Children, too, can buy life insurance for their parents.