![]() Life insurance proceeds can also help to offset tax liabilities or costs from selling or liquidating assets. Life insurance can provide cash to help balance out needs and keep everyone satisfied. One heir may want the cash from selling a home, while another may want to keep the home. Not only can it be a chore to distribute certain assets, but emotions can heighten as well. When it comes to splitting up and dividing out an estate's assets, cash is easiest. Life insurance can make estate settlement easier. Some insurance companies may offer an assignment form so benefits can be paid directly to a funeral home. Life insurance claims usually process quickly so beneficiaries can cover final expenses. Unless there's ample cash available, families may find themselves without resources. Some family assets like real estate, valuables and even investments can take a long time to exchange into cash. Life insurance payouts may be available quicker than other resources. Crowdfunding sites like GoFundMe see more than 125,000 memorial fundraisers per year. Seeking community support has become a norm to help offset the growing challenge for families. Families who haven't planned for such a big expense may have to rely on credit cards or fundraising to cover the costs. ![]() When you add other expenses like end-of-life medical care and legal fees the price can climb. The average North American funeral can cost between $7,000 to $10,000. Three ways life insurance can help with final expenses 1. Life insurance can provide an income-tax-free payout to your beneficiaries. Part of that discussion should involve life insurance. Avoiding plans for an unexpected death may only make the circumstance more difficult. "Families can avoid squabbling over finances and scraping to pay for funeral costs by planning before that day comes," says Sean Scaturro, Advice Director for USAA. Too often, though, they must turn their focus to paying unanticipated funeral bills. When shopping for burial insurance, you’ll want to get a whole life plan, which will cover you for the length of your life, rather than a term life plan.After losing a loved one, family members want to celebrate that person's life and support one another through the grieving process. In other words, you could make all your payments, but if your plan was only for 15 years and you live longer, your insurance won’t pay your claim. The answers you give won’t keep you from coverage for the majority of insurance providers, though it can affect how much you’ll pay for that coverage.Īnother aspect of burial insurance you should keep in mind is that some plans, called term life, expire after a certain number of years. While burial insurance typically doesn’t require a medical exam to qualify, most applications do ask a few questions about your health. There are a few caveats to guaranteed issue burial insurance, though. This means the coverage offered by burial insurance can’t be denied and it can’t be canceled if you develop medical issues in the future. For those with pre-existing conditions, the flexibility of burial insurance makes it very worth purchasing.Ī great reason to consider burial insurance is it’s what’s known as a ‘guaranteed issue’. The majority of life insurance policies require exams, while most burial insurance plans only ask a few health questions. Typically, burial insurance policies some in smaller amounts.įinally, burial insurance is worth buying if you want a policy without taking a medical exam. ![]() While life insurance can offer hundreds of thousands of dollars’ worth of coverage, if you only need to pay for your funeral, you can get burial insurance. The burial insurance money is intended to be used to pay funeral costs, but another reason it’s worth buying is because the payout can be used to cover a number of unforeseen expenses your family might face after your death.īurial insurance also works best for those who need smaller plans. If you want your family to receive a small sum of money immediately after your death, burial insurance is a great option. Yes, burial insurance is worth buying! However, burial insurance works best for those with very specific needs.
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