Final Expense

Rising inflation, extended life expectancy, increasing healthcare costs, and the uncertainty of Social Security income are all things your clients should think about when planning for retirement. And it’s up to you to help them think these situations through and help reduce uncertainty in their plans.

Final Expense Insurance Plans: Money Well Spent Have you ever considered what happens after you die? Yes, dying is not a fun thought but, like taxes, it’s one of those guarantees in life.On the financial side, your assets end up going through probate and will eventually be distributed to your heirs (less the amount the IRS requires you to pay for estate taxes and to settle your debts).  Emotionally, your loved ones want to say goodbye and typically have an appropriate funeral to pay their respects. However, if they (and your estate) doesn’t have enough money to pay for the funeral then it could put them in a financial hole or downgrade the services to fit a minimal budget.Consider these statistics of Burial and Funeral Costs from the National Funeral Directors Association (NFDA) General Price List Survey*:Average Cost of an Adult Funeral:

Non-declinable basic services fee: $1,817
Removal/Transfer of remains to funeral home: $250
Embalming: $628
Other body preparation: $200
Use of facilities/staff for viewing: $395
Use of facilities/staff for funeral ceremony: $450
Use of hearse: $275
Use of service car/van: $125
Basic memorial printed package: $125
Subtotal without Casket: $4,265
Metal Casket: $2,295Average Cost of an Adult Funeral: $6,560 Cost of an Adult Funeral: 1960-Present

1960 – $708
1965 – $790
1971 – $983
1975 – $1,285
1980 – $1,809
1985 – $2,737
1991 – $3,742
1995 – $4,626
2000 – $5,180
2006 – $6,195
2009 – $6,560

Source: 2010 NFDA General Price List Survey (Note: this survey is not conducted annually – 2009 is the most recent year that the NFDA has data)As you’ll notice, the cost of a funeral continues to accelerate. The question then becomes how can you protect your loved ones from the financial burden of a funeral if you don’t have the assets?The answer is a Final Expense Life Insurance Plan.Final Expense Life Insurance Plans are small life insurance plans designed to help cover final expense costs and typically range anywhere from $2,000 to $15,000 as a death benefit. In addition, many Final Expense Insurance Plans require no medical exams and only a few limited medical questions (some even offer guarantee issue plans — ie, no matter what your medical condition you can get a final expense life insurance plan). These plans are very inexpensive, will not expire or go up in price (as long as you pay the premium), can be owned by children as well as the insured, and are easily underwritten.

If you’re looking for a way to protect your family after your death and you haven’t saved very money then it might be worthwhile to look into a Final Expense Insurance Plan.