Final expense planning for women

September is Life Insurance Awareness Month. As such, it’s a perfect time to tackle a topic many avoid — planning for final expenses.

For women, this can be an especially good time to take account of where you are and what your future needs will be.

Why it matters for women

Women can encounter distinct obstacles when it comes to final expense planning. For example, women tend to live longer than men by an average of 5+ years. For married women, they’re more likely to outlive their spouses and manage end-of-life decisions on their own.

Additionally, women typically earn less than men over their lifetimes, too.

One big reason for the earnings gap is that women often put others’ needs over their own. In fact, two-thirds of unpaid care work is done by women … that’s nearly 296 hours per year. As such, many may put off purchasing life insurance.

For many women, this can create a perfect storm for retirement. More decisions, fewer resources.

The reality of final expenses

Final expenses extend far beyond funeral costs, and the numbers can be shocking. The average funeral runs just over $8,000, but that may not include the full picture. Add burial plots, headstones, and memorial services, and costs can quickly climb.

What many families don’t expect:

• Outstanding medical bills
• Credit card debt and final utilities
• Probate fees and administrative costs
• Legal paperwork and estate settlement expenses

These expenses can catch families off guard. Wondering how to cover these expenses can add to the emotional toll of loss.

Understanding final expense coverage

Final expense life insurance is specifically designed to address these end-of-life costs. Unlike larger policies meant to replace income, this coverage typically ranges from $5,000 to $30,000. These smaller coverage amounts can help keep the premiums practical and affordable.

A big advantage of final expense coverage includes guaranteed acceptance or simplified underwriting. So health issues that might not get approved through underwriting aren’t considered. Premiums are generally fixed and won’t increase over time.

Key things to look for before choosing a final expense plan:

• Guaranteed level premiums that won’t rise
• Clear understanding about how to file a claim
• Company history and reputation

Three easy steps to help understand how much coverage is right for you

Start by estimating your likely costs. Consider your preferences such as for burial vs. cremation, services you want, and any outstanding debts.

Evaluate your current situation:

1. Add up existing coverage from all life insurance policies

   (Account for coverage that might end when you retire)

2. Compare totals to your estimated final expenses
3. Identify any gaps that need to be filled

Helping with peace of mind

Final expense planning gives you control over your future and shows consideration for your loved ones. When your final expenses are covered, your family can focus on comfort and healing, not worrying about how to cover funeral expenses.