Last Expense Insurance

 

Here is the problem.

Remember the last funeral you attended? Well, according to the Federal Trade Commission, the cost of that funeral is at least $6,000 just for a simple casket, a cemetery vault and a mortuary service. More than double what it was 10 years ago.

But that funeral might have cost $10,000, $15,000, or even $20,000 if you add in the expense of a cemetery plot with a headstone, the expense of the hearse with a limousine for the family, and the expense of a memorial service with a reception afterwards.


What’s  more? In addition to the cost of a funeral, there are other “end of life” expenses like legal fees, medical bills and income taxes that can amount to as much or even more than the cost of a funeral. Of course when a family member passes on, the last thing most people think about is the cost but when the funeral bills begin to arrive, the family quickly realizes that their loved one’s passing has become an unexpected and unplanned expense adding a financial obligation to the responsibility for making choices, decisions and arrangements during an emotianally stressful and difficult situation when a family is grieving and only wants to comfort each other.

So what’s the solution? Make all those choices and decisions now so your family won’t need to make them later. Then arrange to pay for all these expenses at a tax free discount of 40% to 60%. The solution is to plan your own funeral and pay for it in advance with Final Expense Insurance.

Here is how it works.

You begin by estimating the cost of all your final expenses and securing the insurance to pay for ALL your “end of life” expenses including legal bills, medical bills and income taxes as well as funeral expenses like a mortician, a casket, a cemetery plot, a headstone,flowers and a memorial service. Then you can choose a local mortuary and meet with the funeral director who will guide you through your options and help you make all the arrangements.

You can get up to $50,000 of Final Expense coverage usually without any medical exam and only a few “yes” or “no” health questions and coverage may be guaranteed regardless of any health issues or medical conditions.

To pay for the coverage, you can choose to transfer money from your savings and make one payment just one time or you can make small monthly payments over 10 or 20 years. The money is delivered directly to your spouse or your children by check usually within 20 to 30 days. And whatever they don’t need to spend, they can keep – tax free.

For example Brian and Emily were in their early 60s when they completed their “end of life” planning estimated the cost of their funeral arrangements and purchased Final Expense insurance coverage to pay for it all. They transferred money from a Certificate of Deposit to secure $25,000 of coverage on each one of them. so when Brian passed in 2012 there were no funeral arrangements or financial decisions for Emily because Brian had already taken care of everything. Their insurance agent Craig Wilcox brought Emily a check of $25,000 to pay for it all. And when Emily passed on four years later Craig delivered another check for $25,000 to the children. But after they paid off all the bills there was still $10,00 left over which they divided evenly amount the five grandchildren.

According to an article on the AARP website, the Funeral Consumers Alliance, a nonprofit consumer advocate recommends “end of life” planning because leaving one’s family with all the decisions as well as the payments will only make the eventual arrangements more difficult and more expensive.

So ask yourself this. Does it make sense to leave the responsibility for your funeral arrangements to your family along with the obligation to pay for all your “end of life” expenses? At full price? With taxable dollars? Or does it make better sense to make all the arrangements and all those decisions now and to pay for everything in advance at a substantial discount and with tax free dollars?

 

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