Who will pay for your funeral when you’re gone?

It’s becoming an increasingly common and troubling problem: people pass away, and their relatives find they don’t have the money to pay the funeral costs.

Paying for a funeral isn’t easy. After losing a loved one, the last thing anyone wants to do is worry about how to get together thousands of dollars to pay a hefty funeral bill.

Ask yourself: If you were to pass away, how would your loved ones pay for your funeral?

If you don’t have a good answer to this question, consider buying a guaranteed acceptance whole life insurance policy. These insurance policies are designed to pay for end-of-life costs such as funerals and burials, and there are no medical exam or health questions required to apply for a policy.

[Click here to compare prices for life insurance]

Funeral costs now average over $8,000

The costs of a funeral may seem small, but they can add up.

Funeral expense Median cost in 20141
Removal/transfer of remains to funeral home $310
Embalming & other preparation of the body $945
Viewing & funeral ceremony $915
Hearse $318
Service car/van $143
Basic memorial printed package $155
Metal casket $2,395
Vault $1,327
Basic services fee $2,000
Total cost $8,508


The national median cost of a funeral in 2014 was $8,508. And that doesn’t include other expenses such as flowers for the funeral, a burial plot, or a headstone.

[Get a quote for life insurance to help cover your funeral expenses]

No help for families paying for funerals

What if you don’t have the money to provide a proper funeral for your loved one? Don’t expect a government subsidy to bail you out.

“There is no charity or government organization that will pay off any debt you’ve accrued if you arrange a funeral that’s beyond your means,” says Josh Slocum, executive director of the Funeral Consumers Alliance.2

Funeral homes are not required to let you pay for funeral costs in installments — and an increasing number are asking for payment in full up front.

How life insurance can help

The good news is that there’s insurance that can help pay for a dignified burial or cremation and minimize the financial burden on those you leave behind: guaranteed acceptance life insurance.

“Guaranteed acceptance life insurance is designed specifically to pay for your final arrangements, so you do not leave relatives to shoulder the financial burden,” explains James Cordero, a sales manager at TZ Insurance Solutions.

Because the coverage amounts are relatively modest — meant primarily to cover a burial — the monthly premiums for this type of insurance are usually affordable, says Cordero.

Rates & coverage amounts

Guaranteed acceptance life insurance policies commonly provide between $2,000 and $25,000 in coverage. According to Cordero, $7,500 is the most commonly chosen coverage amount.

The younger you are when you buy the policy, the lower your premium.

For a 50-year-old female, a policy paying a death benefit of $7,500 has a monthly premium of only $30.75. A policy with only $2,000 in coverage would start at $9.30 a month.3

There are no medical exams and health questions required to apply for a policy. For some insurers, anyone between the ages of 45 and 85 will qualify.

The other benefit of this type of policy is your monthly premium is locked in and will never go up.

[Click here to get a life insurance price quote]

Whole life vs. term insurance: which is right for you?

Guaranteed acceptance life insurance is whole life insurance, which means it will last your entire life, as long as you continue to pay your premiums.

That’s in contrast to term insurance, which lasts only for a set period of time — 10, 15, or 20 years, for example.

“It’s called term insurance because the policy is only good for a specific term, after which it expires,” says Cordero.

Many men and women buy term insurance when they are young and have not had health issues, because they feel it’s relatively cheap at the time.

Then, when the insurance expires, they are left without coverage, unless they renew. But by then, they may be much older, and may have had illnesses.  As a result, the policy premium may skyrocket to the point where they can’t afford it. If the health issues are serious enough, they may be denied coverage altogether.

If you’re looking for a policy that won’t cost you more because of health issues and will last your entire life, a guaranteed acceptance life insurance policy may be a better bet than term life insurance.

Call 1-800-966-1847 or Click here to get a life insurance price quote to find out how much a guaranteed acceptance whole life insurance policy could cost you.

1. http://nfda.org/about-funeral-service-/trends-and-statistics.html

2. https://www.funerals.org/frequently-asked-questions/2620-cantafford

3. Sample rate are for MassMutual Guaranteed Acceptance Whole Life Insurance policies

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