Losing a loved one is never easy. But unfortunately, it can also come with another type of pain—a financial one. Most people don’t want to think about the monetary toll that an untimely death can take until it happens to them. But the truth is, funerals are expensive and, if the deceased was the primary breadwinner, their family may have to face tough financial decisions on top of their emotional grief. Let’s talk more about why that is, and what you can do to plan for the unexpected.
Funerals Are Expensive
The average cost of a funeral in 2020 ranged from $7,000-$10,000 depending on the services chosen. That doesn’t include the cost of burial or cremation (which range from $1,000-$3,500) or any other associated costs such as flowers or a headstone. If you’re like most people and don’t have several thousand dollars lying around for unexpected expenses like this one, then you may find yourself in dire straits when faced with paying for a funeral.
The Primary Breadwinner
If the deceased was the primary breadwinner in your family (or even just partially responsible for providing income), then you may be facing more than just funeral costs; you could be facing difficult decisions about how to make ends meet without them around anymore. This goes beyond just day-to-day bills; it could mean having to decide whether or not you’ll need to move homes, downsize your lifestyle, or make changes in order to survive without your income stream.
Preparing For The Unexpected
No one wants to think about a loved one’s untimely death—which is why many people avoid planning ahead for it until it’s too late. While there are some difficult conversations that must be had when preparing for an untimely death—such as life insurance policies and funeral arrangements—it’s important to remember that these conversations will ultimately bring peace of mind knowing your wishes are known and taken care of should something happen. There are plenty of resources available online if you need help getting started on making these plans.
Losing someone close is always heartbreaking and difficult no matter how prepared we are—but being prepared financially can go a long way in helping us cope with our loss and begin healing afterward. Even though thinking about an untimely death isn’t pleasant or easy, taking steps now can help ensure that our families aren’t left trying to pick up the pieces later on down the line should something happen unexpectedly. Life insurance policies and talking with your loved ones about your wishes are essential steps everyone should take so they have peace of mind knowing their affairs are in order should anything happen unexpectedly.