Insurance Types
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Funeral Expense Insurance
An older woman made a momentous decision to purchase funeral expense insurance. She knew that funerals today could cost $10,000 or more. She didn't want her children and grandchildren to face the expenses when she was gone. The insurance, she knew, would cover her final expenses and maybe leave a bit left over.
She had considered pre-paying for a funeral. However, that didn't fit into her plans. She was considering moving closer to her grandchildren in the next few months. A pre-paid funeral here would not work if she moved two hundred miles away. Nevertheless, she wanted to get her finances in order before she moved.This older woman took the time to shop before purchasing her funeral expense insurance. She didn't want to pay out a large chunk up front. Monthly payments would suit her budget. She verified that the insurance company would pay the benefit immediately after she passed. While she was leaving a small estate, her children would need this money quickly. The state where she lived would not tax it either. She set the policy up so that the probate process would not interfere with it.
When shopping for her funeral insurance policy, she considered a few other things. She chose a company with a good reputation. Her friends recommended the company to her with the information that they paid benefits quickly. Her age was a factor in her decision as well. She found some companies would not write policies for people her age.
However, she found companies that were willing. She estimated that her funeral would cost anywhere from $10,000 to $15,000 in today's dollars. As a safety measure, she got a policy for $20,000 to cover for inflation. She chose a policy that would guarantee benefits even if she got too sick to pay the premiums.The older woman chose her funeral expense insurance policy so her children would not go through what she did when her husband died. When he passed, she had to cover the funeral costs out of her savings. The costs shocked her. Since she was grieving at the same time, it made the transition more difficult to handle. After she recovered from his passing, she took time to examine her financial situation. It became clear she needed to cover her final expenses. She found a solid policy that only required her to be in decent health. She was able to save a good deal of money by shopping around.