Funerals can be quite expensive, placing significant stress on your loved ones during a highly emotional time. Final expense can help your loved ones cover these costs — reducing financial strain or unexpected debt. This means that you can rest assured that they’ll have more time to grieve your absence without the added burden of unexpected financial expenses.
In this article, we’ll take a closer look at how much funerals cost, how final expense insurance can help pay for funerals and other end-of-life expenses, and some additional ways to help cover these costs.
The average cost of a funeral with a viewing and burial was $7,848 in 2021. Furthermore, the average cremation in 2021 cost around $6,971.1 Therefore, in either case, it may be tough for people to pay for funeral costs if they do not have substantial funds set aside for these.
Don’t wait until it’s too late. Help cover yourself and your family with affordable coverage from Aflac.
Funerals involve several items you must pay for. Here are a few costs you might expect when planning a funeral:2
For cremations, here are some costs to expect:
Final expense insurance is designed for end-of-life planning. This type of life insurance plan helps loved ones cover funeral costs, legal fees for relevant end-of-life documentation, travel to the funeral, and other related costs. Some proceeds can also be used to help loved ones pay off debts or save for future expenses.
These are small whole life insurance policies. That means they typically have a smaller payouts but have premiums that fit most budgets and provide lifelong coverage.3 They also offer cash value, letting you build value with each premium payment.
This cash value grows tax-deferred at a fixed interest rate. As you grow the cash value, you can eventually borrow against it or withdraw from it. This offers you or your loved ones another way to help cover other end-of-life expenses that you may have before you pass away, such as medical bills and long-term care costs. You can also typically receive your cash value minus surrender charges if you surrender the policy.
An Aflac final expense insurance policy can give you added peace of mind knowing your loved ones can have help covering your end-of-life costs.
Final expense insurance is a great option for several reasons:
Final expense insurance policies are smaller than traditional life insurance, offering premiums to fit most budgets. The average cost of a $10,000 final expense insurance policy for a 50-year-old male is $47 per month.3 Remember that premiums will vary by age, gender, and many other factors.
Final expense insurance is often designed specifically with seniors in mind, making it even more accessible than other forms of life insurance. Features that make final expense insurance easier for seniors to qualify for include the following:
Since funerals can cost thousands, your loved ones may have to dip into savings or go into debt to cover the costs without final expense insurance. However, getting a final expense insurance policy gives you lifelong coverage, helping you have added peace of mind from knowing that your loved ones can grieve without having the financial burden of paying for your final expenses themselves.
Final expense insurance is just one way to pay for a funeral. Here are some other ways your loved ones can cover the costs of a funeral and other end-of-life matters:2
Funerals alone can cost thousands. Plus, your loved ones may have to pay for other unexpected costs for you, like medical expenses and long-term care. However, final expense insurance provides a way to help your family cover your final expenses. Plus, you can build cash value on your plans to provide them with additional financial help. If you’re interested in helping your family have added peace of mind, speak with an Aflac agent today about final expense insurance.
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1 Bankrate – Average Funeral Cost. Published July 3, 2023. https://www.bankrate.com/insurance/life-insurance/average-funeral-cost/. Accessed January 4, 2024.
2 Forbes – How Much Does a Funeral Cost? Updated October 1, 2022. https://www.forbes.com/advisor/life-insurance/how-much-does-a-funeral-cost/. Accessed January 4, 2024.
3 Forbes – Do You Need Burial Insurance? Updated August 16, 2023. https://www.forbes.com/advisor/life-insurance/burial-insurance/. Accessed January 4, 2024.
4 Nerdwallet – Guaranteed Issue Life Insurance: Is It Worth It? Updated August 22, 2023. https://www.nerdwallet.com/article/insurance/guaranteed-issue-life-insurance. Accessed January 4, 2024.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
In AR, DE, ID, OK, and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Final Expense policies are not available in New York.
Coverage may not be available in all states, including but not limited to NJ, NM or NY. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
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