Essentially, what Life Insurance can do is provide family and loved ones with 3 very important things:
1. Enough finances to cover the costs of the memorial service, whether it be a funeral or cremation service.
2. Provide a detailed plan of final wishes of the deceased to avoid confusion.
3. Assist with arrangements and negotiations (restricted to certain Life Insurance Providers)
Let's talk about each individually.
The average funeral in America can cost between $8,000-$15,000 or higher.
The average cremation can range between $1,500 all the way up to $6,500.
Unfortunately, many Americans do not have a plan in place to cover these costs when they pass, leaving an enormous financial burden on the family.
This makes an already very unpleasant situation, that much more difficult.
The loss of a loved one causes an immense amount of grief and emotional distress. Placing a large financial burden on top of all that makes things even more unpleasant.
And while some will say that they don't want anything done when they pass, there are still a good number of expenses involved when somebody passes.
Plus, oftentimes the grieving family wants to honor their passed loved one, regardless of any requests not to.
Life Insurance solves this problem by providing the Beneficiary (the person you choose to receive the insurance proceeds) with the necessary funds to fulfill any final wishes and cover the costs of honoring your passing.
Many times, people are very unsure about how to proceed and what should be done when a loved one passes.
Should we have a funeral or cremation? What kind of casket should we get? What kind of music should we play? Etc.
These types of questions all result from not having written instructions (via your Will) about what you would like done at your memorial.
This is also how costs can get out of control when making arrangements because everyone is unsure about what to do, so more money is spent than is necessary trying to make everyone happy.
This can all be easily avoided by simply having your Final Wishes written out.
3. Smoker or Non-Smoker
4. Health and Medications
5. Amount of Insurance
All of these factors will play a role in determining the cost for your Life Insurance.
However, the average we typically see is between $35-$150 per month, depending on how much life insurance you purchase.
With that said, you could also start with the bare minimum to at least lock in rates at your current age and health.
For example, let's say you're currently 55 years old. You know you need Life Insurance but you can't afford $75 per month for it right now but you will in the future.
You could get as much insurance as possible for $15 per month (required minimum) and then increase the amount of insurance later on when you're able to afford it.
Let's say you increase the amount 2 years later when you're 57 and you've also started taking medications for blood pressure or cholesterol.
Because you already locked in your rates and were approved at 55, the additional 2 years of age and the added medications will have ZERO impact on your rates!
Obviously you will pay more for the added amount of insurance. However, the rate for the increased amount of insurance is still based on when you qualified at 55, not 57 and the medications!
This is a great way to begin setting up your Life Insurance plan without breaking the bank if you're on a budget.
Either way though, at the end of the day, it's tough to put a price on the peace of mind knowing that your family is taken care of should anything happen.