Alright, buckle up, folks! We’re diving headfirst into the wild, uproarious ocean of final expense insurance once again. And this time, we’re asking the million-dollar (or maybe not that much) question: “Just how much final expense insurance do I need?”
It’s kind of like asking, “How much should I spend on my ‘going-away’ party?” Only in this case, your RSVP is non-negotiable, and you won’t be around to enjoy the finger foods.
First thing’s first, there’s no ‘one-size-fits-all’ answer. But let’s get you off on the right foot by saying it’s probably less than the number that first popped into your head (unless that was zero, then we might need to talk).
Determining the right amount of final expense insurance starts with doing some homework. Fun, right? Here’s where you summon your inner Sherlock Holmes and make a list of your final expenses. You might want to include the costs of your funeral service, burial or cremation, and a headstone.
As a ballpark figure, the National Funeral Directors Association put the median cost of a funeral in 2022 at just over $7,000. Of course, if you’re planning to go out in style with a platinum coffin or a gospel choir, your costs may be on the higher side.
Once you’ve done that, consider other expenses. This could include outstanding medical bills or debts, mortgage payments, and day-to-day living costs that your family will face while they take some time off to grieve and recover. And don’t forget to factor in a little something for those ‘extra’ wishes of yours. Remember, a final expense insurance policy is your last opportunity to surprise your loved ones, so make it count.
After all, who wouldn’t appreciate a little ‘dearly-departed-funded’ trip to Hawaii or a surprise cameo from Elvis impersonator at the wake? So, don’t be afraid to dream a little.
The bottom line is, you want an amount that won’t leave your loved ones in a financial bind but also doesn’t have you paying premiums that make you feel like you’re already six feet under. Work with an insurance advisor to get a better grasp of your final expense insurance needs and to find a policy that fits your budget and your final wishes.
Remember, life may be a cabaret, but death doesn’t have to be a financial horror show. With a well-planned final expense insurance, you can ensure it’s a thoughtful encore, offering comfort and a few well-timed laughs to those you leave behind.
