Term vs Whole

So What Is An Average Funeral Cost Anyway?

I wanted to do some research on US funeral costs for a few reasons I won’t go into here, but what I did find was that it was very difficult to come up with current numbers. For one thing, consumers really do have a lot of options which can affect funeral costs. For another thing, it seems to be one of those things that is not discussed a lot out in the open. Considering that some funerals can cost as much as a car, it does seem odd that we do not see the same resources for comparison shopping that we do buy a 2 year old minivan. There are no funeral listings on EBay or or Nexttag, at least not that I could find while I was researching!

Funeral Cost Options

Let’s look at a very vague average funeral cost figure that excludes some pretty expensive items. In 2006, if you exclude the casket, cemetary plot, monument and other extras like flowers, the figure of a bit over $6,000 was arrived at. Of course, caskets can cost anywhere from $600 - $10,000, with a loose average of a bit over $2,000. So now we are up to well over $8,000. You have to add a burial vault or grave liner to that, which will average another $1,200. So it looks like a funeral can approach $10,000 or more. And I haven’t even found the average cost of a monument, though I know they can range from a few hundred dollars to several thousand dollars.

Of course, some things can reduce that cost. The funeral can be held at the gravesite, another venue besides the funeral home (like a place of worship or community center) to reduce the cost, or even in a home. Some people choose cremation for economic or philisophical reasons, which will elimiate some costs.

One good way to reduce costs is to consult with your place of worship or communit center. Clergymen, for instance, should be able to guide you during a time of funeral planning, and they won’t be motivated by profit like a funeral home is. This is a delicate time, and many people feel guilty about shopping after their loved ones have pass away. But still, think about your loved ones. Would they want you to overspend on their funeral, or would they just appreciate a pleasant funeral to show love and respect? Would they really care if their casket was plain or fancy, or if their monument was ornate?

Planning Ahead for Funeral Costs

If you are concenred about funeral costs because you are doing your own financial planning, or because you are planning for the death of a loved one, it really is a good idea to be prepared. Death and burials are a delicate subject in many families, and nobody wants to be seen as planning a party upon the passing on of a friend or family member. On the other hand, loved ones will have plenty of grief and stress right after a friend or family member dies without having to worry about where 10 grand in cash is going to come from to pay for the funeral, burial, and associated expenses like travel, meals, and time off of work.

What About Funeral Plans?

Some people plan for funerals by making sure they have a bit of cash set aside. This is a great situation, but many seniors are on fixed and reduced income and would find it very difficult to save $8,000 - $10,000 or more so they can plan for their own funerals. Of course, families step in to help, and the family and friends may contribute to the pot.

Pre-planning is popular these days, either though pre-need plans or final expense plans for seniors. Pre-need arrangements may be made with a funeral home or cemetary by paying for some or all of the costs in advance. Final expense plans are a form of senior life insurance which pays out a cash death benefit that can be used at any funeral home, and for other expenses as the beneficiary sees fit. In addition, any excess money from the policy can be used as a (usually) tax free way to inherit money and leave an estate!

Look at: Final Expense Insurance Rate Quotes

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We have a lot of questions from people about life insurance, and one of the biggest questions is: What Type of Life Insurance Is Best for me? To answer this question, I would have to know what you expected to get out of your coverage. People want to use their policies for different things, and people want different amounts of coverage. Let me get you started on things you should consider.

Term Life insurance is best for many people who just want to buy life insurance for a set amount of time, usually the term of a mortgage payoff or working years or the years when children are young. That is because term policies are pure life insurance, and as the name implies, they are in force for a set term of time. So a 35 year old with a mortgage and two young kids and a spouse who stays home with the kids would probably consider term for the buld of their coverage.

But why do I say the bulk of coverage? That is because a permanent policy has uses too. Whole life insurance lasts as long as it is kept in force (premiums are paid, or the policy is paid off), and does not expire after a term. It can also build a cash value, and even be borrowed against. Many people want permanent coverage to transfer their estate to their heirs after they pass away in a way that has many tax advantages. If you are not familiar with permanent coverage, look at whole life insurance explained.

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If you have purchased or refinanced a home, you have probably found some offers for mortgage protection insurance in your mailbox. The product promises to pay off your mortgage if you die, become disabled, or ill. It probably also mentions protection in case of unemployment. This product generates a lot of interest, but is it what you think it is?

Unemployment Mortgage Protection is one product, which either provides you when cash when laid off or is designed to make payments to your lender. Of course, we like the sort that pays the consumer cash, because the other sort just seems designed to protect the lender, and not the home owner!

But most mortgage protection insurance is simply a form of term life insurance with a face amount that covers a mortgage balance. Sometimes a decreasing term life insurance policy is used because it will decline as the mortgage declines, and so the premium is cheaper. Riders, such as a disability or critical illness rider, are attached to these policies to cover the insurance policy owner in case of these events, as well as death.

Of course, we also have people who think that mortgage protection is homeowners insurance. This is not true. Homeowners insurance covers property, where mortgage insurance covers the homeowner! Look here for the best homeowners insurance quotes.

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Many people believe that term life insurance is only for younger people who are making sure their spouses, kids, and home mortgage will be paid for if they pass away. However, people are enjoying longer and more productive lives these days. After all, in 1900 a person could expect to live an average of 47 years. By 2005, that figure had increased to over 77 years! insurers take longer life spans into account. You can find term life insurance for older people today!

Online Life Insurance Quotes

Furthermore, all of the obligations that we had planned on taking care of before retirement age do not always vanish as planned. Sometimes people get to be 65, and they still have mortgages to be paid, spouses to support, and even find that their kids still need help. So, just as people are living longer now, their need for life insurance extends well into the senior years.

Another reason older people may want a term life insurance policy is to cover a business deal or an essential employee in a company. If large sums of money are paid out for a contract, and a senior citizen will be needed to perform that contract, a party to the contract may want to be sure that their investments are covered. Look for simple issue no medical exam term life policies.

Now an older person will probably need to look at policy terms of 15 years or less. I doubt that many insurers would offer a 30 year term life insurance policy on a 70 year old, because than they would be insuring that life until age 100. If you want coverage until age 100, than you need to look at whole life insurance instead.

But people are living longer, and insurers have noticed. After all, according to the Department of Health and Human Services, a man who is already 70 years old can expect to live an average of  over 13 more years, and a woman can expect to live over 15 more years. These are average, and a life insurance company will take an individual’s health history into account. So you can certainly find insurers who will cover a reasonably healthy seventy year old until age 80.

In fact it is sort of an irony of age related statistics that arriving at a certain age, makes it more probably that the individual will survive many more years. For instance, according to actuarial tables, a 50 year old man would have an average life expectancy of about 78. But a 70 year old man, by virtue of having survived that milestone, can expect to survive until 83. Of course, no table can predict individual lifespans, but the insurance companies do a very good job of predicting average lifespans for the large group of people that they insure.

The cost of a moderate term life policy should not put you off either. For $100,000 in term life, a 70 year old woman who has good health habits and reasonably good health could find rates less than $40 a month. Men’s rates will be slightly higher in the same age and health class. Now large policies, in the millions of dollars, may cost a couple of hundred dollars a month, so it would be important to consider how much life insurance you really need to cover any debts or obligations.

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Life Insurance Over 50, Over Age 65 Or Even Age 85!

Why Do Older People Need Life Insurance

Many older Americans find themselves without adequate life insurance, just at a time when it is harder to obtain coverage because of age or health conditions. Some had purchased large term policies while they were in their working years, but those policies had expired. The idea was to obtain a large amount of coverage while children needed support and mortgages still needed to be paid. After the term, they would have less obligations because mortgages would be paid off and their children would not need support. Or perhaps they had life insurance through work, and they retired, became unemployed or changed jobs.

But somehow savings had not been accumulated to meet their present debts and obligations. Maybe the mortgage did not get paid off as planned or children did not become self supporting as soon as the parents had hoped. Or maybe the older people just realized the tax advantages of passing on their estate to beneficiaries through a life insurance policy. And of course, if the formerly insured person is a partner in a business that they want to leave to somebody outside of the family, or just to one family member, they may have realized that a life insurance policy is a great way to fund a buy-out agreement!

Whatever they faced, somehow they find themselves middle aged or elderly, with outstanding obligations, and without life insurance. Now, because of illness and age, it will be more challenging to find life insurance. However, because this circumstance is common, and because many life insurance companies like mature clients, it will not be impossible at all!

Affordable Life Insurance Over 50

Many factors go into the cost of life insurance. All things being equal however, it will cost more to insure a sixty year old than a thirty year old. However, all things are not always equal. Nowadays credit is a factor that insurance companies consider, and mature people are more likely to have a long history of financial responsibility. Also, even though the mature person still has a need for life insurance, they may be able to settle for a smaller face value than they needed at thirty. Of course, underwriting will be simpler for a smaller amount of life insurance protection, and since life insurance is paid for by the amount of coverage, the premiums can still be kept affordable.

Look For Senior Friendly Companies

If you are over 50, or if you are a younger adult with a health condition, look for a life insurance policy that is geared towards your needs. An experienced life insurance company or life insurance agent, who is an expert of your sort of case, can present your options. But do not give up because you do have options! You may have to settle for a lower face value of coverage, and you may need to take out a whole life insurance policy rather than a term life insurance company. However permanent life insurance policies have their advantages too, since they do build up a cash value, and will never expire as long as the premiums are paid!

Find Life Insurance For Older People

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