Does Life Insurance Cover Funeral Costs?

Death.  It is something that eventually comes for all of us.  Whether young or old, rich or poor, we all will eventually find ourselves slipping out of this life.  Believe me, this concept doesn’t excite me any more than it does you.  However, as we consider our inescapable mortality, we need to make sure that we are seeing the big picture: there’s a lot more at stake than just our own selves.

The last thing that any of us want to do when we kick the bucket is leave our loved ones with massive debts, such as a mortgage, college tuition, or basic living expenses.  Covering these types of expenses is the main idea behind life insurance.  But, there is one expense (and typically a large one) that we often fail to consider: funeral costs.  An average funeral in the United States can cost between $7,000 to $10,000.  Adding this to the expenses mentioned earlier could end up being catastrophic to your family’s finances.

Source: http://www.usurnsonline.com/funeral-resources/10-interesting-funeral-infographics/

Luckily, life insurance does exist, and it can indeed cover funeral costs.  In general, the way that life insurance works is like this: When a policy is issued, the policy owner chooses someone to be the beneficiary of the policy.  When the insured person passes away, this beneficiary submits a claim to the insurance company, and the insurance company pays them the proceeds.  From this point on, the beneficiary is free to use the funds as they deem appropriate, including for funeral expenses.

With this being the case, the real question becomes this: “Do i have enough coverage to pay for my funeral expenses?”.  It’s a little too common for beneficiaries to find out after the fact that the life insurance policy doesn’t cover everything that is needed or was planned for.  Without careful planning, there may be out-of-pocket expenses loved ones could get stuck with.  I would definitely encourage everyone with a life insurance policy to plan out their funeral beforehand with a funeral director.  Make sure you understand the specific costs of the services you want, and plan your life insurance policy with that in mind.  Some funeral homes will even allow you to assign them as the beneficiaries of a policy.  This way, the benefit is paid directly to them and you don’t even need to get involved during a difficult time.

To many of us, life insurance may seem quite expensive and perhaps not worth paying the premiums to later receive the promised payout.  While I would disagree with such a thought, I can understand larger premiums taking a toll on a family’s livelihood.  Insurance companies are aware of this, and many have created what is referred to as a Final Expense policy, where the benefits are designed to cover funeral costs and premiums are generally quite lower.  Sentinel Security Life offers such policies under our “New Vantage” life insurance products.  If this fits your needs more than having larger and more expensive coverage, seek out a Sentinel agent near you.

Life insurance is a great and powerful tool that can save families a lot of grief and headaches during a time that should be spent on more important matters.  Combined with a little bit of planning and thinking ahead, you can have all funeral costs taken care of and only concern yourself with making sure your policy stays current so it can be utilized when the time comes.  We all want to take care of our loved ones while we are on this earth.  Make sure that you are continuing to care for them even after you’re gone.  Use life insurance.  I promise you it’ll make a hard situation a little bit better.

Blog written by: Andrew Jordan, Creative Marketing Specialist II for Sentinel Security Life Insurance Co.

Saying Goodbye to Dad

Losing my dad to cancer was one of the toughest things I have had to do. The emotional and physical toll the death of a loved one has on the individual and family is exhausting. If that is not enough, you then have the financial responsibility of planning a funeral fitting of your loved one.

We had some money. Dad had a life insurance policy, but because it was acquired less than two years before his passing, we only received $500; not much to work with. Mom told me that they had tried to plan ahead by purchasing the policies so the family wouldn’t have to worry about final expenses, but as life goes you can’t plan for cancer.

The funeral was a loving tribute to my dad as a husband, father, and military veteran.  The whole experience opened my eyes to a part of losing someone that I hadn’t thought about before…finances. I am glad my mom has a life insurance policy. After Dad passed away, we realized we needed to do something different so we purchased additional insurance for Mom to cover not only the burial but also any outstanding debt she may have when she passes.

Going through this process showed me that it is an easy process and the benefits are very high. The value of life insurance is not something we often think about but I’m so glad my parents started planning ahead. Having learned from this experience I will never again underestimate the importance of life insurance.

Blog written by: Revellie Pope, Senior Underwriter for Sentinel Security Life Insurance Co.

Life Insurance Awareness Month

The Life and Health Insurance Foundation (LIFE), a non-profit organization dedicated to helping consumers make informed decisions about insurance has designated September as Life Insurance Awareness Month. Life insurance should be a necessary part of your family’s financial plan but unfortunately, up to 30 percent of US households have no life insurance whatsoever.*

Why is having life insurance so important? Ask yourself if your family could manage their financial needs without you. If the answer is no, then take a few moments to consider how life insurance could help ease the financial burden on them if you were suddenly not there to provide. While there are different types to choose from, most plans will pay your beneficiary a cash amount (called a death benefit) to take care of final expenses, burial costs, flowers, obituaries or any other cost they see fit. They may even choose to pay off lingering medical bills, tax debt or pay off the mortgage. It’s up to them.

After you’ve decided to purchase insurance, it’s important that you find a qualified and licensed insurance professional to help you pick a policy that best fits your needs. The LIFE foundation offers several helpful tools on their website that can help you figure out what kind of insurance you need, how much of it you need and what important questions to ask before purchasing an insurance product. Sentinel also has many licensed agents in your area and we have specialized in final expense insurance since 1948. Sentinel offers three whole life plans which upon qualifying, can accommodate you at every stage of your life, whether you are raising a family or enjoying retirement with your spouse. Sentinel has been offering peace-of-mind and security to our clients for over 60 years.

Please visit us at www.sslco.com or call 800.247.1423 if you would like a Sentinel agent referral or if you’re looking for more information.

Blog written by: Amy Mullen, Marketing Communications Manager for Sentinel Security Life Insurance Co.

*Source:
1. 2012 Life and Health Insurance Foundation for Education (LIFE) webpage, http://www.lifehappens.org/life-insurance-awareness-month/

 

Why Sentinel?

As President of Sentinel Security Life Insurance Company, I’m often asked, why I stand behind this company? Why Sentinel?

We have our business answers of course. We have been serving the needs of the senior community for over 60 years by offering affordable final expense whole life policies to ease the stress of losing a loved one. We’ve expanded our product line to include Medicare Supplement and Select Options and just last year, we released our fixed annuity product that offers our customers some of the highest crediting ratings around. Those are all great reasons to choose Sentinel but I like to focus on one of our greatest company assets: our people.

Visit our corporate office in Salt Lake City, Utah and on every floor, at least three to four of our home office employees have been with our company for 20+ years—some of them for over 30 years. Why do our people stay so long? Because they love what they do—they work hard to provide the absolute best customer service in the industry and they help our senior clients find the peace-of-mind and security that they are looking for. Our people are what make Sentinel stand out from the crowd.

If you aren’t familiar with Sentinel Security Life Insurance, I encourage you to check out our website at http://www.sslco.com where you will find a common list of Frequently Asked Questions about our products and services. Even better, give us a call at the corporate office (855-478-4037). Our wonderful people will be here to answer.

Blog written by: Earl Tate, President of