If you're like most Canadians, you've already thought about what your loved ones will do after you're gone. More than the emotional turmoil, many families face financial difficulties following a loss.
This is why life insurance companies exist. They pay out death benefits to a designated loved one after the policy holder dies.
Also known as final expense insurance, these cover several costs that many people don't even think about when contemplating how much the end of their life will cost.
Keep reading to find out more about final expense insurance and to see whether or not it's actually worth it.
What Does Final Expense Insurance Cover?
While not all life insurance companies will cover the same things, most will cover the following:
Everything from the burial plot to the coffin to the embalming process cost money. These all add up quickly and your family may find themselves in debt just to take care of your body.
If you prefer cremation or another option, final expense insurance will also cover that.
Whether your family has a funeral or a memorial service, there are expenses that go along with it, including building rental, transportation, and printing memorial cards.
Unless you slip away quietly in your sleep, there are going to be some medical bills that come along with the end of your life. Even then, there will be costs involved with transporting your body to its final resting place.
This is an unfortunately common cost that many people don't think about, which leaves family members scrambling to get these bills paid off in the midst of everything else they're dealing with.
Other End-of-Life Expenses
Any loose ends you leave behind means another expense for your family members. This includes assets that haven't been paid off such as vehicles or your home, and any credit cards or other debts you still have.
Average Final Expenses
It's hard to say what you can expect your final expenses to be, since it varies so greatly depending on your funeral options, medical expenses, and other lifestyle choices.
What is known, however, is that a burial in Canada can cost between $5,000 and $15,000. Cremations are less expensive, ranging between $600 and $4,500.
When you consider any medical and other expenses, it's easy to see why so many people are turning to final expense insurance to help their family members avoid so many unexpected end-of-life costs.
How Final Expense Insurance Can Help
Most people get final expense insurance as part of their life insurance policy. If you already have life insurance, be sure to find out if these expenses will be covered for your loved ones.
If you don't already have life insurance or it doesn't include final expenses, we highly recommend making sure that your loved ones are taken care of. Here are just three ways final expense insurance can help you and your family:
We've already gone over how expensive funerals can be. That cost goes up every year, so by the time you pass away, your family might be stuck paying significantly more than the numbers we're looking at today.
By starting to pay into a final expense insurance policy today, you can lock-in today's funeral prices. This alone will help your family save hundreds if not thousands of dollars on your funeral expenses alone.
The death of a loved one is traumatic for anyone. When that death comes with a huge pile of enormous bills, the stress level goes through the roof. You don't want to leave your family brokenhearted and stressed financially.
Another stressful situation that families face is planning the funeral and making other end-of-life decisions about where to bury you or to have you cremated instead.
By indicating what you want and planning for it, you can remove this stress from your family as well. This is actually another way you can help your family save money. They won't make rash decisions in the midst of their grief if you've already made the choices for them.
Unlike life insurance policies themselves, final expense insurance pays out quickly. This is because in most cases, the cause of death is not a factor in whether or not the policy is paid out.
All your family has to do to get the benefits is submit your death certificate. This type of insurance will be paid out in as little as 24 hours so your family can get the financial help they need immediately.
This in turn helps to reduce the stress your loved ones have to go through after your passing. Rather than worry about how to pay everything that's coming up, they can relax knowing they'll have all the money they need quickly.
Is Final Expense Insurance Worth It?
By now, you should understand how much final expense insurance can help your family by covering all the bills and costs that come with the end of your life. However, we haven't touched on the monthly cost of final expense insurance.
If you're going to be paying hundreds of dollars every month for the rest of your life, it may not actually be worth it. However, the truth is that few final expense insurance policies cost more than $100 per month.
How much you pay every month will depend on how much coverage you think you'll need and how much time you'll have to pay it.
This allows you to get the right amount of coverage so your family won't have to worry about any of your end-of-life costs. Plus, you can pick a plan which you can afford on a monthly basis so you can still enjoy the life you have left.
Need a Life Insurance Quote?
As you can see, final expense insurance is more than worth it. You'll avoid leaving your family to face a financial burden as they also mourn your passing. And you can rest easy knowing that they'll be taken care of when you're not there.
If you're ready to look for life insurance companies that provide final expense insuance, we can help. Get a quote today from top companies in Canada who can help you get what you need for your family.