Planning for Your Final Expenses: Do You Have Enough Cash to Leave for a Funeral?

Losing a loved one is undoubtedly a difficult time for any family. The last thing you want is to add financial stress to an already emotionally challenging situation. This is why it’s crucial to estimate your final expenses ahead of time and consider whether you have enough cash to leave for a funeral.

Let’s break down the various expenses that typically arise when planning a funeral:

1. Funeral Expenses: The costs associated with the funeral itself can quickly add up. These expenses may include transportation, a funeral plot, flowers, and a headstone.
2. Medical Bills: Medical bills accumulated towards the end of one’s life can place an additional burden on the family.
3. Legal Costs: Legal matters, such as probate and estate administration, can require financial resources to navigate.
4. Unpaid Debt: Any outstanding debts, such as credit cards or loans, need to be considered when estimating final expenses.

See my article “What happens when you die?” for more details

Now, let’s explore the options available to ensure you have enough cash to cover these expenses:

1. Liquid Assets: Cash in your checking and savings account is readily accessible to joint account holders. However, others would need to go through probate to access these funds, which can be time-consuming and inconvenient.
2. Selling Property: Selling property can provide additional funds, but this process often takes time and may have tax implications.
3. Stocks and Bonds: In some cases, assets such as stocks and bonds could be transferred to a family member and then sold for cash. However, this approach might not be feasible for everyone.
4. Prepaid Funeral Plans: Prepaying for a funeral through a funeral home is an alternative worth considering. However, it’s vital to ensure that the plan is permanent, and the prices won’t change, leaving your family in a tough spot later on.
5. Final Expense Insurance Policy: A final expense insurance policy offers a practical and efficient solution. It provides coverage from day one, and the affordable monthly payments make it accessible to many. The application process is simple, and in most cases, no exam or medical questions are required. Upon providing the insurance company with the death certificate, the beneficiary receives a tax-free check promptly.

If you’re unsure if you can afford a final expense insurance policy, here are some things to consider.

Start with a final expense insurance quote available on this website for the amount you determined you will need, less any:

If you still don’t have the amount you need to cover your funeral costs, I can absolutely help you! I can run quotes based on your available budget to determine how much insurance can be purchased with what you can afford. The amount of insurance you can afford, plus cash, plush any existing policy could probably cover your estimated needs.

Additionally, there are other alternatives. Your family can help make the monthly payments – or can own the policy themselves. The monthly payment is extremely manageable. More so than needing to come up with it all at once during a time of grief and emotional stress.

Whether you want final expense insurance to cover a shortfall in your end-of-life needs budget or not. This could also be great an opportunity to leave your family some extra tax-free cash.

Contact me. I’ll be glad to help. (702) 867-8150