Whole Life Insurance: What You Need to Know
The average funeral costs anywhere from $7,000 to $10,0001*, so planning how you’ll handle your final expenses is one of the keys to making sure that that your loved ones are taken care of after your death. Help avoid a huge burden on them by devising a plan for your final expenses and more.
What are your options?
Whole life insurance can help cover final expenses. Expenses covered under whole life insurance may include the cost of the funeral, and sometimes outstanding medical bills or debts.
With a whole life policy, you can help ensure that your final expenses are covered, plus have access to more benefits. One of the key advantages of a whole life insurance policy is that these policies grow cash value. This means that if at some point you want to draw cash from that policy, you could do so. Keep in mind that drawing on your cash value or using it for any expenses will reduce the policy’s benefit. It also would help cover your family in other ways. If your loved ones wanted to pay off the mortgage instead of help cover final expenses, that option would be available.
Do you need whole life insurance?
Just as important as planning for retirement is planning for what happens to your family after your death. But, if you have family or loved ones who financially depend on you, a whole life policy with a death benefit may be right for you. This policy can help provide them with financial security and you with some peace of mind knowing they can be taken care of. Use a free tool to find out how much coverage would meet your needs.
SOURCES:
1Parting (September 14, 2019). Web page: Funeral Costs: How Much Does an Average Funeral Cost? Retrieved January 13, 2020, from https://www.parting.com/blog/funeral-costs-how-much-does-an-average-funeral-cost/.
*This life insurance does not specifically cover funeral goods or services and may not cover the entire cost of your funeral at the time of your death. The beneficiary of this life insurance may use the proceeds for any purpose, unless otherwise directed.
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