The End Is Nigh: How to Plan for Your Final Expenses
Death shall come, and it costs money. Click here to learn how to plan for your final expenses and lessen the financial burden for those you leave behind
It’s not a fact that most people care to dwell on, but everyone will die some day. In fact, it comes at an almost alarmingly steady pace. Each year, the US sees over 2.8 million deaths.
While it may feel morbid to you, you must still give some consideration to and plan for your final expenses. So, how do you do that? After all, you can’t reasonably know all the circumstances around your own death.
If you’re wondering what steps, if any, you can take in preparation for your final expenses, keep reading. We’ll cover some key points that help keep the financial burden managable for your family.
Understand the Financial Situation
Before you can make any plans for your laster expenses, you must understand the financial situation that surrounds death. One of the key considerations at play are funeral costs.
Do you know what kind of funeral you want? Are you expecting a lavish affair with lots of people or a simple ceremony? Those considerations can change the overall funeral expenses.
If you’re not sure, you can at least plan around the average cost of a little under $8000..
You must also consider whether or not there is still payments left on your mortgage. You don’t want your relatives stuck with a home that you still owe money on. You may also leave unpaid medical bills, such as direct care bills for nursing, pain management, or hospice care.
With the main considerations set out, what can do you to offset those costs.
Buy a Plot
If you are confident that you will die in a specific area, you can buy a burial plot in advance. This frees your family from the financial burden of getting one and picking a graveyard.
Whole life insurance policies, such as a Living Promise policy, are a common approach. These life insurance policies gain value over time as you pay a stable premium. They pay out at your death to a named beneficiary without facing the same probate hurdles as you will.
You can make sure you policy will cover extra expenses like leftover mortgage costs.
If you already have a good life insurance policy but want to hedge your bets a little, you can also set up a payable on death bank account. POD accounts work a lot like Life Insurance in that they bypass probate. The person named on the account provides a death certificate to the bank and gains access to the account.
This lets you set aside extra money as a buffer for any unexpected expenses.
Final Expenses and You
While you may not relish contemplating your own death, it’s an important step for protecting the financial well-being of your family members. It lets you take active measures to manage your final expenses.
For example, you can select the graveyard you want and secure a plot. You can get a whole life insurance policy so your family will have fund available. A POD account at a bank will also let you keep costs down.
Looking for more end-of-life planning tips? Check out the posts in our Lifestyle section.