Average Funeral Costs Have Been Rising
The sum of your final expenses depends on where you live and what type of final arrangements you want. Funeral costs have been gradually increasing since the 1980s. According to the National Funeral Directors Association (NFDA), the average funeral can cost up to $9,000 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.
The rates increase as you get older, so most seniors obtain coverage early on to secure a lower rate. The average policy costs between $30-$70 per month, 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 premium will likely be higher. It may cost between $70-$120 per month, although it could be less.
Most policy amounts are less than $50,000, although the average policy is withdrawn for $10,000 – $20,000.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 less 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.
Why Final Expense Insurance Is Worth It
This type of permanent insurance is affordable 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 when they pass away. Children, too, can buy life insurance for their parents.
