What Final Expenses Does Social Security Cover?
No one looks forward to losing a friend or loved one. Added to that, certianly no one looks forward to paying the expenses which are incurred when someone dies. These expenses typically include medical bills, leftover debts, costs associated with obtaining and receiving final care, and funeral and burial costs. Today the average cost of a funeral is over $11,000 and even if qualified, Social Security only provides a one-time death payment of $255, which does little for the funeral and burial costs, let alone the other related expenses.
This is where a life insurance policy which builds cash value helps tremendously. It can provide the money needed to pay for the expenses when a friend or loved one dies. Plus, under current federal tax law, life insurance policy death benefits are not subject to federal income tax when those benefits are paid to a named beneficiary. Additionally, under some policies the premiums can be guaranteed to never increase as long as the policy is properly maintained. Moreover, some policies allow for guaranteed acceptance of applicants from age 50 to 80, and do so without a medical exam or health questions being asked. These are all considerations which should be taken into account when putting together a plan for financial protection in the event financial resources might be needed when a friend or loved one passes.