Being prepared for more than just burial insurance.
With the average cost of a full funeral ranging from $7,000 to $10,000, depending on your geographic area and the choices you make,1 preplanning for final expenses with insurance can help ease the emotional and financial burden for the people you love. Sometimes called a burial policy, final expense plan, or burial insurance, this type of coverage is typically intended to pay for expenses related to death, such as a funeral, cremation, and/or burial.
While burial insurance offers you and your loved ones immediate financial relief from funeral expenses, there’s so much more that life insurance can do for you and your family, no matter your stage in life. Setting your goal beyond burial expenses can help you create a lasting legacy.
- If you are single: If you provide financial support to aging parents or siblings, life insurance can help you ensure the future of those you care for. In addition, it may help prevent passing any substantial debt on to surviving family members should you die.
- If you have a young family: Life insurance can help give your family the resources they need to maintain their lifestyle if you die. It can replace some or all of your income, pay off debts, cover funeral costs, and help fund long-range needs like college tuition or even your spouse’s retirement.
- If you have an established family: At this stage, if your needs for life insurance change, life insurance can be an important part of a retirement savings program. It can also help ensure that your loved ones would not be burdened with debts, should you die prematurely.
- If you’re just about to retire or have already retired: You may still have dependents, and most empty nesters still have financial obligations. Life insurance coverage can help protect and preserve the retirement you worked so hard to put in place. It can also help offset any unplanned expenses, like medical bills, and give your loved ones a lasting financial legacy.
A term insurance policy is often a good choice:
- When life insurance is essential but dollars are scarce.
- For a well-defined period of time.
- To protect your family (insurance benefits can help pay a mortgage or fund a child’s education).
- To protect your business (benefits can ensure business continuation by helping to cover business expenses).
On the other hand, whole or permanent life insurance provides additional benefits and features, including:
- Lifetime coverage. Your policy can never be canceled, as long as premiums are paid on a timely basis. Once set, we guarantee that your premiums will never increase.2
- Cash value growth. The money that accumulates in your whole life policy, or cash value, can grow considerably over the long term, especially since taxes are deferred on the cash value that accumulates.
- Dividends. All participating whole life policy owners can receive dividends, which can be used to purchase additional coverage or supplemental term insurance, repay policy loans, or be taken in cash. While we have consistently paid dividends for more than 150 years, dividends are not guaranteed.
- A strong start for the future. Since whole life premiums are based largely on age, they are typically lowest when you are young, making it an excellent way to plan for the financial future of children and grandchildren.
So whether you want to leave a legacy, provide income, help provide funds for your final expenses, or do all of the above, don’t you owe it to yourself and the people you love to do better than burial insurance?
We’ve been keeping our promises and helping clients find solutions that fit their needs since 1845. Contact one of our experts today to discuss the pros and cons of burial insurance—and explore alternative options.