It is often quite easy to avoid purchasing life insurance, both because it can be a difficult subject to think about and because it does not seem as pressing as other types of financial planning. However, buying a life insurance policy early is essential to most people’s long-term financial health.
Life insurance helps your loved ones pay for expenses once you are gone. You may not realize it, but final expenses can be very expensive. On top of healthcare costs during your last days, your family or estate will need to cover funeral and burial expenses.
As of 2023, the average cost for funerals is approximately $11,000, and these amounts are on the rise.
The items that make up these costs include the following:
- Transportation of the body.
- The casket or urn.
- Embalming or cremation.
- Headstone, marker, or monument.
- Burial services and other basic fees.
Insurance to cover funeral costs can save you and your family thousands of dollars. Furthermore, if you leave these arrangements to your family, they may spend more than needed because they are emotional and grieving.
Pre-planning can save your family from making decisions during a stressful and sad time.
It’s important to note: that life and funeral insurance policies are different. Funeral insurance will only cover expenses related to your burial. However, payments from life insurance can cover other costs, including leaving something for your family.
Making end-of-life plans can seem morbid, but taking care of these expenses before you go can help your loved ones when they are in pain.