No one really likes to think about death or dying. Unfortunately, however, it is an inevitable life event that we all must face one day. Without preparing for such an event, you and your family could be left dealing not only with your emotions, but with getting affairs in order, trying to locate important documents, and trying to come up with the money to pay for funeral and burial costs. Funerals are expensive, and the cost can take many unprepared families by surprise. Taking the time to prepare for death, while difficult, is essential. Having state final expense insurance can be a great asset in this planning process.
What Exactly is Final Expense Insurance?
You hear and see advertisements all of the time for life insurance. Chances are that you’ve gotten a few letters in the mail from a few different companies asking you to call for quotes. Life insurance is one of those insurance policies that you should have, much like car insurance, health insurance, and renter’s or homeowner’s insurance. Life insurance is designed to help protect your family in the event that something should happen to you. It provides your spouse and dependent children with financial security if you should pass unexpectedly, allowing them to cover the cost of your funeral and keep them afloat for a while as they cope with your loss and adjust.
Older adults, however, have different needs. Seniors most likely have paid off their home, so they don’t have a mortgage to worry about. There’s also a good chance that seniors are retired and don’t have dependent children living in the home anymore. For older adults, state life insurance just might not make much sense. Not only do seniors often have higher premiums, but they also end up paying for coverages they don’t necessarily need. They still need to worry about funeral expenses, though, especially if the money isn’t already set aside. This is where state final expense insurance, or state burial insurance, comes into play.
Final expense insurance is a type of insurance designed with older adults in mind. Rather than taking out a state senior life insurance policy, which could be on the expensive side, final expense insurance is made specifically to pay for funeral and burial expenses. Policies can be tailored so that you can have a little extra to pay for any bills or outstanding debts that might be left behind. Seniors can take these policies out for themselves, or you can take out a policy for your parents.
Burial and Death Stats in Michigan
In Michigan, adults 65 and older account for approximately 75% of deaths. Nearly half of all deaths can be attributed to heart disease or cancer. These are also the leading causes of death in individuals aged 35 to 64.
The state is one of only 8 states that do not allow families to handle the disposition of their loved one’s body if they wanted to. The law actually requires that you purchase the services of a funeral director, even if you wanted to hold the services in your own home. Michigan is also the only state that requires a funeral director to certify a death certificate.
The national average cost of a funeral is between $7,000 and $10,000. Michigan falls below the national average, and in 2107 was the fourth cheapest state to die in. The average cost of a funeral in Michigan was around $5,440, with medical costs associated with death around $10,400.
How to Plan for Death
Planning for death is not an easy task, but it is one that needs to be dealt with. While awkward, it is also a subject best tackled early. This way, your loved one is able to make decisions for themselves while they are still of sound mind. There are many topics that should be discussed, including what your loved one’s wishes are as far as care is concerned, organizing important documents into a single, safe location, and writing or revising a will. It is also important to establish a power of attorney. This person will be able to make decisions and advocate for your loved one when they are no longer able to advocate for themselves.
Another essential topic to cover is end of life wishes and how they will be paid for. Make sure you know how your loved one wants to be honored, if they want to be buried or cremated, and where they would like their services to be held. Additionally, you should discuss the costs of these wishes and talk about the importance of final expense insurance.
Just like comparing quotes for car insurance, or any other type of insurance you might have in your lifetime, it is essential that you compare multiple quotes for final expense insurance. Every insurance company you come across will have very different prices, even for similar coverages. Make sure that the quotes you do get provide comparable services. You want to make sure that you are getting the most you can for the most affordable premiums.
The thought of losing a loved one, or even the thought of your own death, can be a frightening prospect. Being prepared, however, can help to alleviate a significant amount of stress during an incredibly emotional time. Final expense insurance in particular can ease the financial burden of the costs associated with funeral services, giving your family peace of mind while you heal following the loss of your loved one.