Most people do not think about their own mortality. Most men live until their late 70s. The average woman lives until about the age of 80. However, the younger that we are, the more that we convince ourselves that we have all the time in the world to do anything. The cruelty of life is that we only seem to realize with advancing age just how precious time is to us. We need time to accomplish many things in life. Like paying for a funeral, the last true final expense for a human being.
Only about 3% of Americans even consider final expenses as a high life priority to be concerned about. Additionally, only about 60% of people even bother to get a life insurance policy within their lifetimes. Just as you worry about making payments for the rent, a mortgage, car note or personal loan, you should add final expense to that list. Here are some options you may be able to consider.
Funeral Home Prepayment Plan
If you are looking for options to help you pay for your funeral, you may want to consult a funeral home director. Many funeral homes have prepayment arrangement plans. First, you can consult with the funeral about the kind of funeral that you want and calculate its expense. The potential expense of your funeral can then be broken down into a prepayment plan.
For a predetermined length of time, you can arrange to make incremental payments to pay off this expense. If you are worried about paying for your funeral, you should make such an arrangement as early in life as possible. Make sure to have this arrangement put in writing between you and the funeral home.
Final Expense Insurance
One of the benefits of final expense insurance is that someone else can sign you up for it on your behalf. What is final expense insurance? It is an alternative form of life insurance. A final expense insurance policy is optimal for use in paying your funeral expenses. Like a life insurance policy, beneficiaries can be named. You can use the policy coverage to leverage against a loan. Yet, the main convenience of such policies is that they can be used as a form of last chance coverage to pay for a funeral.
The application process for final expense insurance is extremely simplified. It can be done over the phone and completed in minutes. Some final expense companies even allow someone other than you to sign you up. It can be a relative, friend, or business partner. They will have to prove insurable interest. This means that your death will be a financial burden to them.
You will have to speak to the representative on the phone and sign documentation to prove your consent. Then you can name your relative or friend as a beneficiary. After your death, your beneficiary will then be responsible for paying your final expenses. An average and basic final expense insurance policy can be worth $25,000. That is just enough to pay for a modest funeral.
Plan Ahead Now
If you are among the 40% of people who have never had a life insurance policy, which can be used to pay for a funeral, you may still have options. The only person in life who is responsible for paying your final expense in life is you. If you don’t brainstorm ways to pay for it, who will?