Does Life Insurance Cover Funeral Costs?

As you get older, you may think more and more about your future and possibly even death. There’s no knowing when exactly we’ll die, so it’s a good idea to start planning ahead, regardless of your age.

Death is not cheap. When you die, there will be final expenses, such as burial, funeral, and cremation expenses. Depending on what you decide, your death could end up costing tens of thousands of dollars. In 2023, the median cost of a funeral with a viewing and burial was $8,300, while the median cost of a funeral with cremation was $6,280.

But it will be your loved ones who will be footing the bill. Most people cannot afford such an expense, so many end up struggling. You can avoid this added stress by purchasing life insurance.

Life insurance helps pay for funeral costs and any other expenses associated with your death. There are various types of life insurance you can purchase. Many people choose term life insurance. You can typically get this insurance for 10, 20, or 30 years. When you die, your beneficiary receives the money which can be used to cover whatever your beneficiary decides to use it for. This may include funeral costs and existing debts.

You can also opt for burial insurance. Burial insurance can be cheaper and easier, as it lasts a lifetime and covers your funeral and other expenses when you die. All you need to do is choose the amount of coverage you want and choose a beneficiary upon your death. You just need to keep your premiums current, which you can typically pay either monthly or annually.

Upon your death, the beneficiary would need to contact the insurance company and provide identification along with a certified copy of the death certificate. This starts the claims process.

Burial insurance does not specifically have to be used for death expenses. There are no restrictions on how the payout can be used, but your beneficiaries might want to use it for funeral arrangements, burial costs, cremation costs, outstanding debt, and any medical bills.

Burial coverage typically comes in amounts ranging from $5,000 to $40,000. Coverage is typically available for older people, such as those between the ages of 50 and 85. No medical exam is required to qualify, and in some cases, even those who have pre-existing conditions may qualify.

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Paying for the everyday expenses associated with living can be costly, but even dying can be expensive. Make sure your final wishes are carried out by purchasing insurance to help your loved ones.

Hartman Insurance Agency is here to help. When you need car, home, life, and business insurance in Michigan, get in touch with us today. We’d love to help you get what you need. To learn more about your options, call our office at (734) 999-4190 or fill out the online form.