Losing a loved one is an emotional, difficult experience. When you are grieving the loss of someone you love, it is not a good time to be faced with unexpected financial burdens. Expenses associated with death, on average, can exceed $8,000. To spare your loved ones when you pass away, it is advised that you put a final expense insurance policy in place to pay for end-of-life costs.
What Is Final Expense Insurance?
Expenses associated with death could have a significant financial impact on your loved ones. Social Security only provides a one-time payment of $255 for burial expenses. The average funeral costs more than $8,000 when you factor in the costs of:
- Death certificates
- Memorial
- Housing the remains
- Transportation
- Preparation and embalming
- Use of funeral home
- Casket
- Headstone
- Burial plot
- Burial service or cremation
- Flowers
- Printing of memorial cards
Final expense insurance is designed to help protect your loved ones from having to pay these expenses out-of-pocket. The policy also pays off the debts you have accumulated at the end of your life.
Fixed annuities can play an important role in your retirement planning. While a pension and Social Security may provide some retirement income, it may not be sufficient for the kind of retirement you want to have. Fixed annuities can help you save for retirement and provide you with additional income over the years ahead.
What Is a Fixed Annuity?
Essentially, a fixed annuity is a CD-type investment issued by an insurance company. You pay into the annuity, either in one lump sum or in payments over time. In exchange, you get a guarantee of receiving payments in the future, either for a specified period or for the duration of your life.