Using life insurance as burial insurance

Kent always had a great relationship with his father and spent a lot of time with him playing pickleball and cycling. So, when his dad passed away suddenly at age 60, it was a complete shock, emotionally and financially. His father, Don, rented a condo and had limited assets, life insurance not being one of them. Kent knew that his dad always wanted to be interred at the same cemetery as his mother, but he thought he had lots of time in the future to discuss that with his father. Not so. Had Don thought ahead, even a small life insurance policy could be used as burial insurance.

With no insurance benefit in place, Kent had to deplete his rainy day savings account to cover the cost of his father’s final expenses. After investigating funeral and burial costs, here is what he learned:

Price of Final Expenses:

• Burial Lots: $500 - $60,000

• Cremation: $5,100 - $26,000

• Burial Vaults: $1690 - $53,000

• Urns: $100 - $2,600

• Markers: $500 - $21,000

Losing a loved one is painful enough without being saddled with the burden of covering final expenses. Purchasing a permanent life insurance policy to cover his funeral expenses is one of the most thoughtful gifts he could have given Kent. He could have chosen to use the policy as burial insurance to cover any number of items:

• Cremation or burial

• Celebration of Life (food, music, hall rental)

• Flowers

• Obituary notices

• Clergy honorarium

• Grief counseling

Choosing a policy starting at $25,000 as a tax-free lump sum would have helped Kent considerably. Various insurance options are available to help keep up with inflation. A small policy can also help pay legal fees and estate taxes during an already difficult time.