This is a sponsored post with Jenny Life Insurance and BraVoMark. All opinions are mine.
Death Expenses – It is NOT Just the Cost of the Funeral to Consider
Are You Prepared?
Have you ever taken time to contemplate your death? I am not referring to the spiritual or physical, but the financial and emotional. Have you made necessary steps to ensure that your family members will be taken care of in the event of your death?
Each year, there are approximately 40,000 motor vehicle deaths. According to Medical News Today, cancer and accidental deaths claim an estimated 700,000 Americans. Every minute in our country people are dying from a cause other than “old age.” Waiting to prepare for your death will only result in a financial and emotional burden for your loved ones.
The average American owes approximately $62,000 to creditors at the time of their death. When a person passes away, their debt is the first thing paid out by their estate. Once the debt is paid, then, and only then, will the money be distributed to your heirs. If you owe an outstanding amount of debt at the time of your death and do not have life insurance, there is a very good chance that your heirs will be left with very little from your estate.
How can you prepare yourself now to ensure that your family is taken care of in the event of your premature death?
1. Make sure that you are adequately covered with the correct amount of life insurance needed for your family in the event of your passing. Determine how much you contribute to the monthly income or how your death will affect the monthly household income. Do not underestimate how much contribution a stay-at-home parent makes in the daily lives of a family – with the rising cost of living, including daycare expenses and household help, these expenses should be factored into the amount of life insurance coverage for the stay-at-home parent. Factor in debt payments, savings, daily costs, bills, child care (an average of $15,895 is spent per year for infant child care), future savings like college (an average college student pays $34,788 per year) and retirement, paying off or for a mortgage, funeral expenses, and anything else that you will need to leave to your family if you are no longer there to provide.
2. Prepare your paperwork. Make sure that your files are properly labeled and organized. Always have a backup for your important files – store both physical papers and digital copies. Let a family member (or two) know how to access your files and accounts. Leaving passwords in a safe place is an important, often overlooked step.
3. Make sure that you have a will. A will ensures that your property is distributed as you choose, a guardian is designated for your children, and an executor is selected for the management of your estate.
Be prepared with the proper life insurance policy (for the busy mom, Jenny Life makes it easy with an app on Android or Apple), making sure that your files are in order, and that you have a legally binding will ensure that in the event of your death your loved ones will be left financially sound. We are never guaranteed tomorrow, so take the time to prepare for your family’s future before it may be too late.
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