Funerals are expensive and the price will only continue to rise. Even without a burial plot, grave marker or headstone, the average funeral still adds up to more than $8,500. Cremations aren’t as expensive as a full funeral but even they are still a significant expense costing thousands of dollars.
Final expense life insurance is worth it if you’re out of your original term life insurance, retired or you don’t have any financial dependents anymore. Final expense insurance covers the one major cost still ahead (your funeral) without a huge monthly premium.
If you already have $10,000 to $20,000 set aside to cover the costs of your funeral, it’s probably not worth it – but make sure that money is truly “set aside” and won’t be touched for any other expenses. According to the CDC in 2018, the new average life expectancy for Americans is 78.7 years – so seniors need to do careful financial planning for their final years.
Remember, the primary goal of final expense insurance is to ensure you don’t leave any unnecessary financial burden on your spouse, children, grandchildren or other heirs.