Do You Need Life Insurance to Pay for Your Funeral?

funeralFuneral life insurance can be a wise investment during retirement as it helps you provide financial relief for your loved ones. A policy pays a death benefit which is received by the beneficiaries after you pass away.

Since the costs of burial ceremonies are increasing, having life coverage is necessary for financially securing your family members.

What happens if you pass away without carrying coverage?

If something happens and you pass away, your family will have to survive on limited financial resources. Although the income is reduced, the expenses are not. On the contrary, an unexpected death always brings new expenses.

A simple funeral ceremony can cost an average of $10,000. Cremations are cheaper, but even for those, a family has to pay several thousand dollars. Can your family pay for your funeral ceremony? Without life insurance, they do not have any financial relief. They will have to meet up the expenses themselves and this can be very difficult.

Keep in mind that last expenses are urgent and they need to be covered in a short period of time. Without proper financial support, many families will have to borrow money and high interest rates.

Consider other financial needs too!

Securing money for your burial expenses is important, but if you have dependents, you need more coverage. A funeral life insurance plan will only offer a small death benefit, which will not be enough to cover other financial needs.

Your family will have to pay mortgage rates, utility bills and they will need money for food and other consumer goods. Make sure you purchase enough coverage to help your family get through a rough financial period.

Plans that provide higher face values are traditional policies like term, whole or universal life insurance. Some no medical exam life insurance policies can also offer a high death benefit. It is important to compare quotes. Click here for the best rates and more information.