Final expenses vary for every individual depending on death’s circumstances. For final expenses and debt payments, life insurance can provide the money needed for these end of life bills.
In the event an individual experienced prior hospitalization, medical bills may be added to their debt if health insurance does not cover the full cost of treatment.
Also, if Medicare is being used to fund home or nursing care, there may be caps put into place. The same can be said about many private insurance companies as they have limited coverage, according to McGill’s Life Insurance.
On the average, funerals can run up to $10,000 depending on burial location, cemetery charges, and if the body will be transported to multiple locations.
Memorial receptions may also be planned, which are also costly as the high prices of flowers and refreshments.
Cremation has become a popular alternative to the typical funeral, as it is a less expensive and more environmentally friendly option.
After the funeral, there are costs in settling financial and property matters in closing the estate, which can include court and attorney fees. Depending on the complexity of the estate, there may be real estate managers and investment specialists that are needed when property is involved. The longer the process, the more it will cost.
The most important point to any life insurance policy is planning what must be done ahead of time to achieve the best results when taking care of financial assets. Adequate cash through life insurance should be made payable to a trust or individual rather than directly to the estate.
If people die from accidents, serious property damage may need to be addressed immediately. Depending on the type of property damage, some homeowner’s policy may not cover the repairs.
Once again, life insurance can pick up the pieces.
The family auto may not be covered for the total demolition of the family vehicle caused by the fatal collision, life insurance benefits would cover emergency expenses followed by a death that includes property damage. Many take out accident riders, if available, in the event that death if caused by an accident.
Final expenses are different for every family and so are the end of life bills from those who pass away. Life insurance can provide the money needed.
Want to learn more about life insurance? Read our article The Most Frequently Asked Life Insurance Questions.