We have a collective span of over 6 decades of insurance and retirement savings field and we have I acquired a great deal of understanding when it comes to the issue of final expense life insurance. The term pretty much sums up the meaning. It is final. No do-overs. No mulligans. Finished!
There are numerous reasons why people search for solutions on an admittedly very difficult topic. Let’s face it, discussing final expense plans doesn’t rank in your top things to do but yet, here you are reading this. Let’s also agree that what you want is a solution that makes sense and doesn’t take food off your dinner table. We here at My Agent Says want that for you as well. There are very few people we can’t help. There are sensible and logical choices available to you. If there’s a solution out there that you’ll like, we will get it for you.
Can we agree, the only reason why you are here in the first place is that you either don’t want to spend down your retirement assets to handle final expenses or you don’t have enough to begin with and you want to shift that risk over to an insurance company for pennies on the dollar in many situations.
Additionally, you may be a homeowner owing your lender money. This is becoming more prevalent among many retirees and soon to be retired. We often treat our home like a bank. However, upon decease of the mortgage holder, you do not receive a debt forgiveness letter on your loan. It’s the mortgage company sending you the next billing reminder that you have to continue paying. So rather than you dip into your pocket, you can plan today that your house payments will be coming out of the pocket of the insurance company.
It is certainly, a new normal is now upon the surviving family. Final expense planning is there just for that reason. To give the family the ability to meet immediate expense but more importantly, time to determine the next steps in life. Maybe even a move.
Today with average funeral expenses hover nationality at $7,000 to 11,000. Cremation comes in slightly cheaper at around $6-7,000. Veterans through the National Cemetery Administration have benefits that include a gravesite in any of our 142 national cemeteries with available space, opening and closing of the grave, perpetual care, a Government headstone or marker, a burial flag, and a Presidential Memorial Certificate, at no cost to the family.
Surviving family members are thrown into a new and uncertain world. They will undoubtedly be trying to resolve difficult issues at the passing of a spouse or partner. A list of those issues might look something like this. We are sure other readers will come up with their own additions.
I’m by myself. I don’t need all of this space or yard to take care of
I need to be close to other family members
The mortgage is to much. I need to reduce or eliminate it if I can
I’m going to try something entirely new in a new area
We are fairly sure that if you read this far, we’re probably poking a hot dagger into some of your own nagging doubts. That is fair enough to say. We all have them, and, in many ways, they just seem different and its ok to say that. What we are saying here is life is going to change. Trying to plan for events like this are reasonable and practical. You just simply want to work with the right people who can give you the very best options.
Inevitably, the issue of health comes into play. Let’s face it, in an aging population, we see the onsets of diseases and maladies that one way or another on a certain day, will eventually take your life. The companies who understand these numbers are willing to insure you based on your health and risk factors. The better your health, the better pricing you get on your policy.
Today thanks to innovative companies cooperatively working with state regulatory authorities, new products have entered the market that can assist even some of the most severely health challenged. It is now possible for people who were uninsurable previously, can secure coverage on guaranteed issued plans and help bring some much-needed peace of mind for those affected.
Critical Period Certain
Planning that “next step” for homeowners varies person to person. But as we alluded to earlier, that next step may mean leaving the home. The one you and your spouse worked on together and thought it was going to be your forever home until you both died. It is a rare and blessed event when that can happen, but the facts are women are 3.5 times likely outlive men and 50% of all widows lose 50% of their retirement income after the death of the loved one.
What survivors need more than anything else besides love and compassion from their family and friends is time and we are not talking about adding more time to the deceased. What we are saying is that you can buy time for yourself and the family. How do you do that? By having a mortgage life policy that will pay your monthly mortgage, taxes and insurance. How does that work?
Say for example your monthly payment, including taxes and insurance, is $2,000 a month. Now, you ask yourself, how many months do I need to cover my payments until I am ready to sell and move. It could be 6 months. In that case, you purchase $12,000 (6 x $2,000) worth of life insurance. Now the mortgage is taken care of for 6 months. No fire sale and this action gives you time to get things in order to prepare them for that next chapter of your life.
Put yourself into the trusting hands of your insurance advisor. They have the experience and the knowledge to give you options so that you can make that most important decision that you believe is in your best interest. A good insurance advisor will always put your interest far above any that they may have. My Agent Says is here to serve you at whatever station of life you are at. That is our promise to you.
My Agent Says