Final expenses can sometimes be hard to discuss. Yet final expenses are a great burden to a family and especially to the loved ones and compound an already difficult time financially. Being prepared with final expenses insurance is one way to make sure that your family will not need to dip too deeply into their savings just to pay for the funeral or cremation expenses and other medical bills you might leave behind.
One thing that you should do is to make a list of all expenses that you or your loved one may incur in the days and months following death. These include any final expenses that are for a funeral, including embalming, cemetery fees, flowers, the funeral service, etc., as well as any legal fees for deeds of trust, wills, probate, etc. You should also include a brief note listing any stocks, bonds, life policies, and retirement plans that you, your spouse, or your children might have taken out.
You should then begin to discuss these matters with your funeral home. Often times the funeral home will handle this part of the arrangement for you, but you may have other options as well. For instance, if you have moved away from the area where you grew up, you can inquire whether your local funeral home will help you with final expenses. This can make things much easier on everyone involved, including the family, friends, and even the next of kin if they are unaware of your situation. You can also ask if you can have the state pay for the burial or cremation.
After you have set up a payment plan, you should generally make an effort to pay off as much of the balance as possible in the days immediately following the death. However, depending upon your income, the amount you borrow may not be enough to completely cover the balance. The other option is to obtain a separate loan for the balance. However, if you do this, you will typically have a small interest rate and repayment terms that are difficult to adhere to. As such, this is not typically used as a means of funding final expenses.
Funeral Insurance Policies
In addition to final expenses, some funeral insurance policies will cover other costs associated with the service. These can include flowers, officiant fees, floral gifts, and even transportation expenses to and from the church or location of the service. Policies can also cover a casket, plot, and burial. Although they will generally charge more for these services than those provided by the state, it can sometimes save money to have them covered by a third-party insurance company. In some instances, funeral insurance policies are required when planning a private funeral.
If final expenses are not paid on time, the applicable fees will go towards a refund or settlement. Typically, these fees will be determined by the state, although the exact formulas will vary from state to state. If you are having trouble making your monthly funeral expenses payments, you may want to contact a representative from the state’s funeral department to discuss possible options. They may be able to recommend a third-party financial company that will work with you to repay your outstanding bills. However, you should always remember to make payments on time in order to get full satisfaction from your final expenses insurance policy.
To sum up, final expense insurance will reimburse you for funeral costs incurred in the course of carrying out your friend or relative’s life. Final expense policies are not appropriate for covering all funeral costs. Before opting for this type of coverage, you should consider your overall funeral costs as well as other life insurance policies that you may need in order to cover other final expenses. Lastly, while life insurance policies will provide you with peace of mind, they will not pay all of your final expenses at the time of your death.