Life Insurance Can Give You Peace of Mind for Funeral Expenses

Life Insurance

Have you thought about leaving life insurance death benefits to beneficiaries because you are concerned about who would pay for your funeral expenses? Imagine leaving your life insurance to multiple beneficiaries who cannot reach an agreement on paying the cost of your final expenses? This may seem inconceivable but believe me, it happens.

According to the National Funeral Directors Association, the average cost of a funeral was a little over $7,000 in 2012. This excludes the additional cost a cemetery plot, vault (if the cemetery requires it), headstone, flowers or obituaries, which may increase the total cost to more than $10,000.

You can ensure your funeral expenses are paid before your life insurance policy proceeds are payable to your beneficiaries. This is done through an assignment of your policy for payment of the funeral costs, if the funeral home accepts the arrangement. Many funeral homes will accept an assignment of the proceeds of an insurance policy but others may not. If you are interested in this concept, look for funeral homes that are willing to work with you on assignment of life insurance proceeds.

I often get calls from people looking to purchase life insurance to cover their funeral expenses. Often times they are older and have health issues, which can result in higher life insurance premiums. Another option, if they can qualify for standard life insurance is securing guaranteed issue life insurance, which may have limitations on benefits. Planning ahead for payment of final expenses, which include funeral expenses, should be considered at younger ages. This is when health may be better to get a lower cost life insurance policy to meet these inevitable costs.

Life insurance is a great first step towards planning for the payment of your funeral costs. The second step may be an assignment of the life insurance policy to a funeral home for the cost of the funeral services. This will ensure the ease of payment and avoid difficult decisions for beneficiaries.

About the author: Ken Buccico holds a LUTC designation and has been in the life insurance business for 39 years. His wealth of experience empowers clients to make best possible decision regarding a life insurance policy. To explore the best  life insurance option, contact Ken at 1-800-651-1953 or