Do you have a way to pay for final expenses after youāre gone?
Thrivent Financial cites a 2015 survey by the National Funeral Directors Association that estimates the national median cost of a funeral is now more than $7,000.00. Final expenses are often more than just funeral costs, however, and may include additional expenses like unpaid medical bills, unpaid debt, immediate household expenses and even estate settlement costs. With these kinds of expenses and the future thrown into flux, having a plan for final expenses can be one of the most generous acts you can do for you loved ones.
But what about the cost associated with life insurance? According to a 2016 LIMRA study focusing on life insurance ownership, nearly two thirds of American households say they cannot afford life insurance, and more than 7 in 10 say they havenāt purchased life insurance because they are focused on other financial priorities. Yet itās important to recognize that today, there are more simplified options to help you take care of your family with final expense life insurance.
This type of insurance can be designed as guaranteed issue (meaning you may qualify with no underwriting or medical exam) or simplified issue (which asks a few basic health questions). Itās important to note each insurance contract will vary but it can be a wise option if you have medical issues or needs which may prohibit you from obtaining coverage.
Many of these products also provide estate planning trusts associated with them, providing you with options for final expenses and legacy planning. This option gives your family and loved ones the opportunity to continue supporting the causes you care about even after youāre gone, like leaving a gift to your church or a charity.
Life insurance is truly one of the most generous gifts you can give. In that spirit, working to help protect your loved ones from bearing the costs of your final expenses can be an incredible gift at a very difficult time. Final expense life insurance can provide for final expenses and allow your spirit of generosity to live on.
This article was prepared by Thrivent Financial for use by representative Kyle Olson. He has offices at 120 N. 6th Street in Hiawatha and can also be reached at (785) 740-4648.