What are Final Expenses for Medicare?

August 5, 2020

It’s kind of depressing to think about the final of anything – season final, NBA finals, final call, and, all of us will have final expenses. How do we plan for our final expense and what does it mean for Medicare? Can we buy insurance for that?

What Does Final Expense Mean?

Final expenses are those expenses related to the preparation and burial of your body as well as the funeral. It sounds sad to talk about but it is an important item to discuss with your family.

“A final expense policy is a type of life insurance that's designed to eliminate any financial loose ends when you pass away. These policies feature a guaranteed death benefit that's payable to your beneficiary.” Humana

Does Medicare Pay Any Funeral Expenses?

The short answer is no. Medicare has a death benefit which, frankly, is very low and is unlikely to help with funeral expenses. With the average cost of a funeral being upwards of $7,500, the Social Security Death Benefit is a drop in the bucket.

“A one-time payment of $255 can be made only to a spouse or child if they meet certain requirements. Survivors must apply for this payment within two years of the date of death.” SSA.gov

What is Final Expense Life Insurance?

There are so many different types of insurance policies. Be sure to discuss your options with a licensed professional. Final expense life insurance will cover the expenses related to your funeral.

“Final expense insurance – also known as burial insurance – is a type of permanent life insurance policy that extends a small death benefit designed to cover final expenses associated with a funeral and burial.” Insurance Innovations

Do You Need Final Expense Life Insurance?

The answer is yes. Unless you’ve made preneed arrangements with a funeral home prior to your death, this all falls on your surviving family members.

We’re sure you’d like to be remembered and celebrated without the stress of your family setting up a GoFundMe campaign on Facebook.

Download Our No-Cost Medicare Guide

We know this sounds confusing. This is why we created a complete Medicare guide which covers every detail you need to know. Sign up with Healthy Access for this no-cost guide and get back to living your best life!

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