You buy life insurance to relieve the financial burden of death in the family. But, what happens when your spouse died no life insurance? Dying without life insurance coverage will leave you and your family financially unprotected.
Without life insurance, family members are responsible for paying funeral expenses and debt.
A funeral can cost anywhere from $3,000 to $25,000 if the family can’t afford the cost of a funeral the estate is responsible for paying funeral expenses.
Life insurance helps relieve the financial burden of death on the family.
Life insurance benefits to surviving family members when the insured dies. Depending upon the terms of the policy, life insurance compensates a family for a loss of wages; help the families covers medical expenses and ensure that the beneficiaries have adequate funds to pay for final expenses.
FINAL EXPENSES YOUR FAMILY WILL HAVE TO PAY
A life insurance policy is often purchased to help cover the cost of funeral expenses.
Without life insurance, your family will be left to pay the final expenses. The funeral cost can be quite expensive, and the funeral expenses can vary depending on the type of service and goods used during the service.
Casket – this is commonly the largest funeral expense. Starting around $2,400 casket can get really expensive if you would like to be buried in metal or bronze.
Embalming is necessary if there is going to be viewing or visitation but if there won’t be viewing, embalming will not be required. According to the National Funeral Directors Association, this service cost about $700.
Memorial Service according to NFDA this service cost about $2,000. The memorial service includes planning, preparing obituaries, obtaining proper permits and copies of the death certificate, viewing of the remains and coordinating with the gravesite.
Gravesite – the price of a plot in a cemetery depends on many variables like the type of cemetery or the size of the plot. Most plots cost around $1,000 to $2,500 or higher in some larger cities. It is possible to purchase plots ahead of time in some states in a private transaction.
Transportation– It cost about $300 to use a hearse to bring the deceased to the funeral home. A service car or van will cost another $130.
Obituary –It may cost up to $600 if you want your loved ones to be memorialized in a larger publication. The cost may vary depending on the day you run the obituary and if you include a picture and how long the biography is.
Gravestone– a flat grave marker usually costs less than $1,000 while an upright one may cost up to $10,000. Prices depend on the material and color of the marker. You can choose from granite, sandstone, limestone or concrete. Marble is the most expensive but if the deceased is a military veteran you may be able to get a grave marker for free.
Flowers– funeral flowers including bouquet, spray, and boutonnieres can cost between $200 to $1,000 for the whole complete package.
These are the other expenses your survivor will have to pay when you passed away:
Travel expenses – if your survivors don’t live in the same city, they may have to make a flight and stay in a hotel for a few days to be with the loved ones during the funeral.
Lost Wages– your death will not only cause emotional grieving, but it will be impossible for your loved ones to go back to work after a traumatic loss. It would take a few weeks to a month before your spouse will be able to return to work.
Taxes and debt – your spouse will be responsible to pay your medical bills and taxes. If your spouse is still living in your own house, they will owe some type of estate tax, which they may not be ready to do without selling the home.
Counseling – your spouse may need to go on counseling to process their emotions and grief. Counseling sessions cost around $100 or more an hour.
WHAT HAPPENS WHEN YOUR SPOUSE DIED NO LIFE INSURANCE?
The loss of a loved one is tough and having no life insurance for your death will be harder on your spouse.
There is limited financial assistance available for funeral and burial costs. If your spouse does not have the financial means to pay for your funeral, she may have to do with these alternatives:
Loan – your spouse, will have to get a loan to fund the funeral expenses. They will not only have to pay for the funeral but also the pay interest on the loan.
Funeral payment plan – some funeral directors’ offer loans for those who are unable to pay. You will only have to deposit up-front and pay back in installments. Your spouse would need to shop around to find a funeral director that offers excellent value.
PROGRAMS THAT CAN HELP YOUR FAMILY IF YOU DIE WITHOUT LIFE INSURANCE
The Social Security Administration provides the surviving spouse a one-time death benefit. The death benefit today is $255.
The spouse and depending children may be entitled to receive an occurring monthly benefit. They may qualify for monthly benefits based on the work record and earnings of the decedent. The amount will be based on the percentage of the worker’s wages and length of work history.
The recipients will need to meet all the requirements before receiving assistance.
Charities and Government Authorities
Many charities may be able to help.
When someone dies, and there’s no way for their family to pay the funeral, the government has a few ways they can help. Indigent burial programs can help those who are needy in some states and counties. Some are managed on a country level, and some states have state-level programs.
The family of a deceased veteran may qualify for ongoing and burial benefit from Veterans Affairs.
The VA’s pension is available to low-income surviving spouse or children of veterans who served during the war. VA burial benefit for service-related death is up to $2,000 toward final expenses. The VA pays up to $749 for non-service related deaths and $300 for decedents hospitalized at the time of death.
A small plot or interment allowance may also be available to the family.
Indigent Burial Assistance
The spouse may qualify for indigent burial assistance without life insurance.
Some localities offer burial assistance for a family who cannot afford to bury a loved one. Indigent burial assistance varies widely depending on the locality. Some indigent burial assistance pays up to $1,100 for a funeral or $552 for cremation when the family cannot afford the final expenses.
You can crowdsource for your loved ones after a tragedy and hope that many people will feel your heartfelt appeal.
You can crowdsource through gofundme.com. More and more GoFundMePages are springing in times of death. This program helps some to cope with the initial final expenses.
If this appeal reached an adequate level, the family would have a foundation to build on.
What kind of burial policies and final expense policies should I avoid?
TV AND MAGAZINE ADVERTISEMENTS – Most burial policies or final expense policies you see advertised on television or in magazines are sold as “the no-brainer way” to shop for this protection.
In reality, most of these policies rely on you having NO BRAIN to purchase them.
Just about everyone is eligible for immediate coverage and better pricing allowed by these heavily advertised policies that cost an arm and leg.
To make a long story short, it is better to shop for burial policies with a specialist in burial insurance, like FuneralFunds.com, than to sign up with a company that spends ba-zillions of dollars each month advertising on television and in magazines.
Increasing Price Policies
Those TV and magazine final expense policies may increase in price every five years or have a two-year waiting period before your benefits kick in! What in tarnation!?!
These policies aren’t all they’re cracked up to be, and you often end up at the short end of the stick by purchasing burial insurance this way.
These tricky television magazine snake oil salesmen lure you in with an attractive rate, only to have the cost of your insurance increase every five years until you cannot afford the premiums, then you must cancel your policy.
What happens after you cancel the policy?
You’ll die and will have wasted all that money because you bought a policy that increases in price as you get older. These policies just don’t cut the mustard for most folks!
Avoid policies that increase in price every year or end at a certain age. You don’t want your family to get hung out to dry when they need this coverage the most.
Why choose Funeral Funds for my burial policy?
Most life insurance agents are fine, respectable people.
There are, however, the classic “snake oil” life insurance agents, who will sell you the easiest and most expensive policy possible.
The guaranteed issue folks claim you don’t even need to talk to an agent (but you will need to wait 2 years for your coverage to begin…even if you’re healthy). Answering a few health questions will often get you immediate coverage and MUCH better rates.
Avoid these people at all costs!
For the rest of the life insurance agents, who are fine respectable people, they are most often generalists.
They deal with all kinds of life insurance policies.
They are Jack of all trades and Masters of none.
They are nice people, but they are not the logical choice if you want the best pricing and a burial insurance policy with no waiting period.
We work with 20+ final expense companies, so we can get you qualified for the best price plan with the intent of getting folks like you immediate coverage when possible.
We have to admit that, for the average burial insurance final expense insurance shopper, all the companies and options will often leave you more confused than a woodpecker in a concrete forest.
How can Funeral Funds help me?
The reality is that inexperienced and less knowledgeable insurance agents will cost you loads of money by selling you overpriced burial and final expense policies.
Getting on affordable burial or final expense policy doesn’t have to cost an arm and a leg.
Our job at Funeral Funds is to be the most knowledgeable burial insurance experts available. By doing so, we can knock it out of the park and get you the most accurate quote and affordable rates.
Once we know more about your age and health history, we can accurately give you burial insurance quotes from the final expense companies that are the best fit for you.
It is always in your best interest to work with an independent brokerage, such as Funeral Funds.
With access to all the best final expense insurance companies, we will help you understand your best options, given your current age, health, and financial situation.