Don’t Count on Life Insurance to Pay for Your Funeral Expenses
Life insurance, according to insurance sales people, is something parents who truly love their families purchase. While life insurance can tremendously help your family financially after you die, don’t expect your family to receive any money right away. One of the biggest sales pitches agents use to get people to purchase life insurance is that it will pay for your funeral costs, but the reality is that it will help pay for the debts incurred from your funeral.
Your Death Does Not Mean Instant Money for Your Family
When a person who has life insurance dies, the insurance company must first receive an official death certificate issued by the state. This process can take as little as a couple weeks or as much as a few months. Because of this, grieving families are sometimes left scrambling to find money to pay for funeral and end-of-life expenses if the deceased did not preplan a funeral. While some life insurance companies are now collaborating with pre-planning services so the bereaved do not suffer such a financial hardship, most do not.
The Best Ways to Help Your Family Cope Financially with Your Death
First, purchasing life insurance will help your family tremendously after your passing, especially if you have any debts such as a mortgage, student loans and so on. Just because your insurance policy does not necessarily mean instant cash for your loved ones, don’t pass-up the chance to purchase a policy.
Second, make a last will and testament, living will and/or a living trust that explains how to divide your estate (even if you don’t think you have much) and lets your loved ones know your wishes in the event you are no longer able to make decisions on your own. If you have a computer with Internet connection, you do not necessarily need a lawyer to create a will and living trust because you can easily make them with the help of professional online resources.
Third, preplan your funeral and make end of life preparations. There is no reason to add extra stress after your passing, but not preplanning your funeral today will do just that. When you preplan your funeral, you can make sure your final wishes are truly met.
The Gift of Peace
When it comes to thinking about the end of your life, loving your family does not mean having a bunch of money set aside for everyone. It means preparing for your death. Although this topic is hard to think about for many, it is easier for you to make these important decisions today than it will be for your grief-stricken family after your passing. When it comes down to it, peace of mind is the best thing anyone can leave behind.
Learn more about preplanning today.
[photo: It's_JoJo's Photostream]
Tags: funeral preplanning, life insurance, living will, make a will
