The cash your family receives from a policy’s death benefit can provide the resources needed to lessen the financial weight of death-related expenses.
The amount needed for these costs depends on your individual situation. Large hospital, medical, home care or rehabilitative bills can financially drain a family before death even occurs. The cash from life insurance proceeds can help replace these losses so death-related expenses don’t plunge your family into a financial sinkhole, according to “McGill’s Life Insurance” author Edward E. Graves.
Something else to consider are burial or cremation costs. The average cost of a funeral in the U.S. is $6,500. Burial plots, flowers and cemetery/mausoleum charges can easily increase this price. Additionally, cremation services cost around $800.
After the funeral, there may be other expenses related to the deceased’s estate. The costs of settling property and financial matters can include court and attorney fees, death taxes, will requests, tracking down beneficiaries and costs for an executor to manage the estate. A good rule of thumb to consider is the bigger the estate, the greater the expenses.
To learn more about how much life insurance you need to cover all your expenses, go to the Life Quotes, Inc. Life Insurance Needs Calculator .