How Insurance Impacts Funeral Costs
The loss of a loved one is a difficult time for everyone whose life was impacted by their presence on this earth. For the family of the deceased, it’s greater strained by having to prepare for a funeral to bid farewell. The cost of funeral services has grown with each passing year, so it helps to consider a safety net now in order to prepare for your family’s needs down the line. Believe it or not, different forms of insurance can actually have a significant impact on how you address those costs.
Health Insurance
While Medicare or Medicaid may not outright cover the cost of funeral services, certain aspects of your health insurance plan may help to curb some of the expenses. There are some exceptions in certain states that allow for funds to be set aside under Medicare Advantage plans. This is more comprehensive health care coverage compared to the basic policies provided by the government that allows for a wider array of quality care.
In the United States, this can expand to survivor benefits through the Social Security Administration. This death benefit is a one-time payment to the spouse or child of the beneficiary of the Medicare Advantage policy. Eligibility and the benefit amount will depend on how long the deceased worked and paid Social Security taxes. This will also be dependent on household income, as this will impact the tax bracket and amount accrued over time.
Life Insurance
A life insurance policy is an important piece of coverage for anyone to invest in. It assures that an insurance company will keep you and your family protected in the event of your untimely passing. However, many life insurance plans are also of great assistance in covering your funeral expenses. These plans will pay a lump sum when you die to the beneficiary of your choice. It will cover the funeral and any other general financial needs. This payment is made upon the death of a loved one so it doesn’t have to go through probate.
When people experience loss, it can be a burdensome time. With a variety of funeral services to choose from and out-of-pocket costs, you’ll be looking for funeral homes near me that offer some compassion during this trying period. Whether the plan is for burial or cremation, the family and friends of the deceased search for a funeral home that will respect their loved one’s legacy, and the family’s financial situation. Beyond standard funeral services, some funeral homes will even offer up a strong support network that includes grief counseling. They’ll also work with families to personalize the service, from a proper obituary to a fitting tribute during the proceedings.
Burial Insurance
There’s an offset of life insurance that is specifically designed to cover funeral costs. It’s called burial insurance, and it’s generally available across the United States, with rates based on age and gender. A simplified burial insurance plan will require you to answer a few health-related questions to make sure you qualify. A guaranteed insurance policy requires no health questions or a medical examination. Beneficiaries will be refunded the insurance premiums you pay on the plan, plus some interest, or a small percentage of the policy’s coverage amount.
It’s an important decision for policyholders to make on burial insurance, as some experts have suggested that a term life insurance policy may be a greater investment over time with higher premiums on burial insurance. As is the case with all insurance plans, everything isn’t one-size-fits-all. Make an assessment of your current insurance needs, setting important deadline reminders for yourself to evaluate your situation. This can save money out of your own pocket, and stress for your loved ones in the long run.
