Did you know that 70% of inherited wealth is lost by the second generation, 90% by the third, and if you spend recklessly enough, 100% within a few minutes? Final expense insurance’s death benefit can be up to $50,000 in extreme cases. At the very least, it’s $2,000. Typically, it’s $5,000 to $20,000. Here, these tips are offered assuming the death benefit is closer to $20,000 than $5,000.
Keep Up Your Payment Plans
You’ll be tempted to pay off certain debts all at once, but there’s a good chance you have multiple costs to cover. Pay as you would if you didn’t have the money. Inheritances don’t come by often, and once that money is gone, it’s unlikely you’ll get thousands of dollars overnight.
Think of Leftover Costs
Sticking with the notion above about keeping up with payments, keep in mind what your loved one had in leftover costs that could become your responsibility. Other than paying for funeral costs, there is a chance that their medical bills could become an extra payment added to your own bills. By taking care of those extra costs with the death benefit, you will be able to have some sort of relief knowing that they are taken care of.
Don’t Feel Guilty for Buying Something You Enjoy
The common advice given is to take care of your bills and nothing but your bills, but that shouldn’t prohibit you from making a purchase you’ve always wanted to make. If you’re not behind on your bills and you’re able to live somewhat comfortably, there’s nothing wrong with spending it on something you enjoy. If you’ve wanted a new computer, or you’d like to go on a nice vacation, you have every right to do so.
Do keep in mind, though, that final expense policies are not like traditional policies in the sense of the death benefit. Traditional life insurance policies will typically provide a death benefit that can cover large costs, like a mortgage. Final expense policies, however, are meant to cover funeral and medical costs, with the possibility of having a little bit leftover (depending on how much coverage the policyholder chose).
We Specialize in Wise Choices
At Final Expense Direct, we don’t force our customers into anything they don’t want to be a part of. We just give educated suggestions that are done out of the best interest for your future. To learn more about managing death benefits and other related topics, call us today at 1-877-674-0236.