| By :
Marilyn Katz
Nobody likes to talk about the death of a loved one. Or at least, nobody likes to start the conversation. But I have found that once people do start talking about concerns and preparing for them, there is actually a sense of security. Many older people live on fixed incomes that are not very large. These older people have been loving and financially responsible members of society for many years, and they just cannot afford to save for a funeral when they need money to live on now. Other people, probably close family members, must pay for the costs. They must have money to pay for a burial, funeral, paying off debts, and everything else. But many middle class families have a hard time coming up with the cash when they need it. In addition to the sense of loss when they lose a beloved family member, the others also have to be concerned about coming up with lots of cash. An average funeral and burial can cost eight thousand dollars or more. In addition, there may be other costs. Some family members or friends may have to travel so they will need meals, a place to stay, and transportation. Some people may not have vacation pay to compensate for lost time on the job either. A life insurance policy called a burial or final expense policy is one way to prepare. It is, simply, a kind of whole life insurance. The death beefit of the policy is fairy small whe compared to other coverage. These usually range from about twenty-five hundred dollars to twenty-five thousand dollars. Because they have smaller death benefits, it is easier for older people to access this coverage. They may not have strict underwriting guidelines, so older people can get accepted. They may be simplified or guaranteed policies so almost all older people will qualify. Sometimes an older person will choose to purchase a policy for themselves. Middle aged, or younger retirement aged, people can probably find reasonable premiums. Sometimes this is not possible, but a family may chip in to pay the premiums. They will purchase the policy on the life of their older family member, but a grown child or other loved one may own the policy. The idea behind final expense policies is that they will provide cash to pay for funerals, burials, and other expenses when a loved one dies. Many people find that this is an affordable and simple way to prepare. Not everybody needs a final expense policy. If the older person, or their family, has plenty of cash on hand, they can rely upon that. But many older people need their income and savings for their current living arrangements. And families do not always have this cash on hand either. A burial policy can help them come up with the money they need. It is not always easy to start talking about making plans for the end of life. But once some plans are in place, it can actually provide some ease for everybody involved. The older people know that they will have their final arrangements in place. If family members think they can come up with the cash without depleting cash or credit.
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