Picture yourself in the living room. You’re shirt and pants laid out for you. I know it seems so far away. But you’ve just been given a $10,000 bill and it’s due upon receipt. How do you feel?

Shortness of Breath? Anxious? Confused? Angry? Frustrated?

These are the common emotions towards having a surprise bill fall on our backs.

Now picture receiving a check for $10,000.

Now, how do you feel?

Relief. Calm. Relaxed. Clear headed.

Have you thought about how you would feel if you had to handle an untimely death and an immediate debt obligation?

Have you thought about how your survivors will handle your untimely passing?

You have the choice today, reading this post, picturing yourself receiving that surprise bill due upon receipt.

What program do you have in place to prevent your survivors from having to fit the bill themselves OR having several others pitching in to cover the cost of our final expenses.

Option 1) Do Nothing: Indeed. This may be the most popular option. Though we’ve also noticed it as the most regrettable one. Understandably, a majority of folks avoid preparing plans for their final expenses. Most folks are in the mindset that being gone means no more responsibilities and just let others figure it out. If you can picture yourself on the receiving end of a surprise $10,000 bill and you’re comfortable with that feeling, then this may be the option for you. As the old, time honored saying goes “do unto others as you would have done unto you”

Option 2) Savings Account: This option is not as popular as doing nothing, but it is an option people put confidence into. If your plan is for your survivors to use your savings to pay for the immediate final expense obligations, then I recommend determining the cost of your final expenses. This may include the choice of funeral, burial or cremation. The choice of a memorial service or memorial and visitation service. Also consider the legal expenses that are due to settle our estate (no matter how small that is, there are fees due to finalize our death).

Once you have that number established, then determine how much you can set aside each month to get to that number. Then take the amount you feel comfortable budgeting each month and multiply it by the number of months it would take to get to the final expense obligations you settled on. Example, the average person plans that their final expense obligations will be about $10,000 (average preparations). $50 per month x 12 = $600 per year. $10,000/ $600 = 16 years.

So there you go. You can plan out 16 years to be prepared to alleviate your survivors from having to fit the $10,000 bill.

NOTE: usually death is untimely and surprising. So if you’re planning the savings route, be sure you tell your survivors.

Option 3)Final Expense Permanent Life Insurance: Most popular option that results in a positive solutions. Final Expense Life insurance could pay a tax free cash sum within 24-72 hours if you purchase it from a carrier who focuses primarily on Final Expense insurance. Let the Final Expense Insurance company pay the bill. Final Expense insurance companies have unique processes in place to be available to process death claims quickly. What this means for you is that you can feel assured that your survivors will receive the money, exactly at the time they need it. This prevents the survivors from having to pay out of pocket for your final expense obligations. Life insurance is the recommended approach because with only one premium investment, the full benefit amount is paid out upon an uncontested death. What is an uncontested death? Some life insurance companies have conditions and limitations for paying out the death benefit if you pass away within 24 months of purchasing a life insurance policy. But if you work with a final expense insurance company, then you have a better chance of having first day coverage (coverage on the day you submit your application) and in the event that they would want you to live 24 months before they would pay the death benefit, they will let you know. So at least you will be aware of the processes. Insurance companies that don’t primarily focus on final expense, may not be as explicit about the 24 month contestatibliy period. But to put you at ease, you’re premium investment is protected, and your survivors will receive your premiums plus a predetermined amount of interest (customarily 10%). So in the event that your untimely death would result in a contested benefit (because of your health condition at the time of application), then the policy will return the premium + interest to your survivors. So it’s better than the banks interest rates, and you still have the probability of the full benefit being paid out.

The benefit of working with a final expense insurance company is that they do much more than just sell an insurance policy. These types of companies work closely with funeral homes, so they have a pulse on the processes proceeding a death. Final expense insurance companies also work closely with you as a trusted advisor to help you with your final expense memorial planning, and also keeping up with you through the years to assure your policy is still in line with final expense costs. A final expense insurance advisor can help you put your final wishes onto a memorial guide, so that at your untimely passing, your survivors will know who to contact and what to do.

Go back. Picture yourself with a guide in hand after someone close to you passed away. Would that guide have helped you?

The reason to use permanent life insurance to alleviate the final expense obligations falling on your survivors is because the policy will remain in force until you expire. It’s not the type of policy that expires before your expire. Since we cannot time our death, a permanent policy the recommend type to assure that funds will be available when we pass away.

Temporary Insurance (term insurance) has it’s place for things like Mortgages and raising families, but it’s not the product of choice to prepare for our final expense obligations.

How does permanent life insurance work in your favor? Using the figures from option 2, we’ve determined our final expense obligations. Simply take the amount determined for your final expense obligations and get a quote estimate for the cost of that benefit amount. Tweak with the benefit amount until the cost aligns with your budget for final expense obligations.

Caveat to a permanent insurance policy is that cash savings that accumulates within the policy. If you happen to run into a rough patch where you are unable to make your premium payments, then your the policy will be paid by the cash savings that accumulated within the policy. You may also have the option to borrow from this cash savings. Just keep in mind borrowing from the policy will reduce the total benefit pay out. So if you purchase a $10,000 benefits and borrow $500. Then the benefit will be reduced to $9,500 if you have not paid back what you borrowed from your policy.

Work with a Final Expense insurance company since they may be able to insure almost anyone, regardless of health and to almost any age (through age 90 with Security National Life) and they will be able to offer first day coverage. This means that the day you submit your application, the coverage is in force. What this means for you is that after your initial premium investment, the coverage is in force and will pay out, even if you died the next day. That’s the power of same day/first day coverage.

Life insurance seems to get a bad wrap. Unfortunately, there have been poor representatives and swindlers of the product, selling in “twist your arm” sort of way. Not with us. That’s why we present all three options to you.

The choice is ultimately up to you. Do what you will with the information. Make a choice and commit to it. Don’t forget to tell those who will survive you about your preparations and plans. Write it down in a Memorial Guide. You can get a complimentary memorial guide from us.

We can help you determine your final expense obligations and put your program in place and on paper to instruct your survivors when the time comes.

Let the Insurance Company pay the bill. You write the small check, the insurance company will write the big one for you.

Respectfully, I remain grateful and available to you,

+ beau lemoine