In the spirit of Life Insurance Awareness Month, Florida Governor Rick Scott told Florida residents that during challenging economic times life insurance is one of the few resources still available to families in the event of a death.
According to the National Association of Insurance Commissioners, 95 million Americans have no, or not enough, life insurance coverage despite 600,000 people dying each year prematurely in the United States. The odds of a 25-year old male dying before the age of 65 is 1 in 5, and 1 in 9 for females. In addition, insufficient life insurance coverage results in a 75 percent chance that surviving family members will be faced with a financial burden in the event of a loved one's death, the South Florida Sun-Sentinel reported.
Most consumers try to find life insurance coverage to replace the income of the deceased loved one, but there are other expenses to consider as well, such as burial and funeral costs. Not all life insurance policies will cover the added expenses associated with a funeral, and it is important for consumers to make sure they understand what their policy covers for the beneficiaries.
U.S. Life Daily reported that some policies can provide beneficiaries with money to cover the funeral and burial, but the pay out from a life insurance policy can often take weeks to finalize. Therefore, many policyholders have opted for burial and funeral insurance to make sure that funds are set aside for the specific use of covering these expenses to avoid unnecessary out-of-pocket payments. The news source reported burial insurance can aid the beneficiary in paying for funeral costs including embalming and funeral home usage.