Cover your Funeral Costs Years in Advance
Do you or anyone you know have a spare $10,000 laying around to pay for your funeral expenses? I would imagine that the answer to that question is overwhelmingly “no.” If that is the case for you, have you considered how your loved ones will pay for your final expenses? I would imagine that the answer to that question is also overwhelmingly “no.” Don’t worry, you’re not alone.
Very recently, my grandmother (who is still quite young) made a point to notify us that she had chosen, paid for, and visited her burial plot. When we all inevitably made comments about how she won’t be needing a burial plot any time soon, she advised, “I wanted to make sure everything was in order…. just in case.” In case you’re not like my grandmother, who has chosen and paid for the exact location where she will be laid to rest years before it is necessary, please know that you have other, less aggressive options.
Of course, you can leave it up to whatever higher power you believe in (if any) and rest easy knowing that your final expenses are not really your problem. You can also store some money in an undisclosed location, and hope that it is found and applied to your final expenses when the day comes. If neither of those options sounds great to you, you might want to consider getting a life insurance policy.
I’m not a life insurance agent or broker, and I don’t work for a life insurance company. I won’t make any money off of you going out and buying a life insurance policy, and I certainly won’t get a promotion or an award. In fact, I am a life insurance attorney who fights against life insurance companies for mistreating customers and mishandling policies. You might be wondering why I would be advocating for getting a life insurance policy to cover final expenses. There are a few reasons for that: (1) life insurance can be an incredibly effective financial planning tool when done properly; (2) not all life insurance claims are denied if the policy is written properly; and (3) a life insurance policy can be one of the best gifts you can leave for your loved ones after your passing if done properly.
I’ve written a number of posts about the different life insurance professionals that generally come into play when hunting for a life insurance policy. One key player that I did not mention is a funeral home or funeral director. The vast majority of American families seek out services from a funeral home after a loved one passes away. We all know funeral services can be incredibly expensive and come at a really inopportune time. There are a few ways to offset the costs of funeral services using life insurance. One way is by assigning a portion of your life insurance benefits to the funeral home of your choice. This essentially makes the funeral home a beneficiary to the policy but forces the funeral home to use the benefits to cover the funeral costs. You can also choose a trusted person who will be responsible for paying for your funeral costs as a beneficiary to your life insurance policy which will effectively reimburse that person for the funeral services. However, it is absolutely vital, under either option, that you inform the relevant parties of your intentions to avoid confusion after your passing.
If you read through this post and think that you may be interested in getting a life insurance policy to cover your funeral costs your first step should be to find a trustworthy and knowledgeable life insurance broker. Give me a call, shoot me an email, or send me a website inquiry for free recommendations for local brokers with excellent reputations.
