When Tanya Castillo lost her 2-year-old daughter to malpractice, she not only had to deal with the devastation surrounding her daughter’s painful death, but she also had no funds to bury her child. She had to put funeral proceedings on hold so she could find a way to pay funeral costs. Although she wanted to break down and grieve for her loss, she couldn’t. She had to find a way to give her daughter the burial she deserved. Family members and people from her community joined together to fund raise the amount she needed, but it wasn’t until a week later that Castillo finally laid her daughter to rest.
“It was the worst feeling in the world,” Castillo said. “I couldn’t sleep, nor could I grieve properly and move on.”
Situations like Castillo’s are not uncommon, unfortunately. Many people delay funeral planning for their later years because they don’t like to think of the “what ifs.” However, by simplifying funeral planning early on with term life insurance, families can avoid the pain and added stress that comes with burying a loved one whether death occurs naturally or unexpectedly.
Term Insurance Policy Types
Term life insurance provides individuals affordable coverage for a specified term (i.e. 10 years or 30 years), and the premium amounts can remain fixed or unchanged for the duration of that term. Additionally, it offers maximum coverage for specific financial responsibilities, including funeral expenses. Overall, there are 5 Types of Term Life Insurance, including:
– Renewable: Offers a specific term or terms, which usually includes increments of 1 to 5 years. The insured can renew a policy without a medical examination at a premium determined by age.
– Return of Premium: Refunds the total amount of premiums minus administrative fees and other costs to policy holders who never file claims during the term of the policy. Premium benefits forfeit, however, if the policy is cancelled before the end of the term.
– Convertible: Allows policy holders to convert their policies to permanent or cash value policies without a medical examination. Younger people tend to benefit more from this policy because of cost and coverage.
– Level: Provides fixed coverage and stable premiums for specified terms, primarily in 5 to 10-year increments, or by specified age.
– Decreasing: Imparts benefits that gradually decrease during the term of the policy.
Term Life Insurance and Funeral Planning
To determine which policy works best, people want to educate themselves on all aspects of the policies and speak with insurance experts. Sometimes, people may choose the wrong type of insurance and find themselves in a bind when insurance companies fail to release funds on time, or release partial benefits only. For young people like Castillo, a convertible plan may work best because policy holders can opt for the cash value of the policy, or for permanent insurance, which many experts feel works best for funeral expenses.
Don’t Wait For The Unexpected to Happen
Today, the average funeral costs approximately $6,600. To some people, that may not seem much, but to others, that’s money they don’t have. By planning early and not waiting for the unexpected, people can rest in peace–peace of mind at least.
Castillo, Tanya; Personal Interview; San Angelo, TX
“What is Term Life Insurance:” MatrixDirect; Retrieved from www.matrix.com