Are Your Prepared?

Funeral cost double every 20 years!!!

Let that sink in just a moment.  In 1960, the average cost of a funeral was $700.00.  In 1985, a funeral would cost around $2,737.00.  Today, the average cost of a funeral is between $10,000.00 & $15,000.00.  In the year of 2050, they are expecting funerals to cost between $30,000.00 & $40,000.00 depending on inflation.  The average inflation rate since 1913 is 3.43%.

 

What you should know!!!

Social Security only pays a one-time lump-sum death payment of $255 can be paid to the surviving spouse if they were living with the deceased. If living apart and they were receiving certain Social Security benefits on the deceased’s record, they may be eligible for the lump-sum death payment.  If there is no surviving spouse, the payment is made to a child who is eligible for benefits on the deceased’s record in the month of death.

 

Veteran Affairs changed its monetary burial benefits regulations in July 2014 to simplify the program and pay eligible survivors more quickly and efficiently.  The new burial regulations permit VA to pay, at a flat rate, burial and plot or interment allowances, thereby enabling VA to automate payment of burial benefits to most eligible surviving spouses and more efficiently process other burial benefit claims.  

 

Benefits:

• Service-related Death - VA will pay up to $2,000 toward burial expenses for deaths on or after September 11, 2001.  If the Veteran is buried in a VA national cemetery, some or all of the cost of transporting the deceased may be reimbursed.
• Non-service-related Death - VA will pay up to $796 toward burial and funeral expenses for deaths on or after October 1, 2019 (if hospitalized by VA at the time of death), or $300 toward burial and funeral expenses (if not hospitalized by VA at time of death), and a $796 plot-interment allowance (if not buried in a national cemetery).

 

Eligibility Requirements:

• You paid for a Veteran's burial or funeral, AND
• You have not been reimbursed by another government agency or some other source, such as the deceased Veteran's employer, AND
• The Veteran was discharged under conditions other than dishonorable, AND
• The Veteran died because of a service-related disability, OR
• The Veteran was receiving VA pension or compensation at the time of death, OR
• The Veteran was entitled to receive VA Pension or compensation, but decided not to reduce his/her military retirement or disability pay, OR
• The Veteran died while hospitalized by VA, or while receiving care under VA contract at a non-VA facility, OR
• The Veteran died while traveling under proper authorization and at VA expense to or from a specified place for the purpose of examination, treatment, or care, OR
• The Veteran had an original or reopened claim pending at the time of death and has been found entitled to compensation or pension from a date prior to the date of death.

NOTE: The VA does not pay burial benefits if the deceased:

• Died during active military service, OR
• Was a member of Congress who dies while holding office, OR
• Was a Federal prisoner.

 

Evidence Requirements:

• Acceptable proof of death, AND
• Receipted bills that show you made payment in whole or part, OR
• A statement of account, preferable on the printed billhead of the funeral directory or cemetery owner.  It must show the name of the deceased Veteran for whom the services and merchandise were furnished, the nature and cost of the services and merchandise, all credits, and the amount of the unpaid balance.

 

You can apply online at Vets.gov but you can also submit a paper application by downloading and completing the Application for Burial Allowance and mail it to the Pension Management Center that serves your state, work with an accredited representative, or go to your local regional benefit office and turn in your application for processing.

 

Back to the issue at hand!!!

With the information I just provided you, are you fully prepared?  Do you have enough life insurance to protect your family and your assets?  Have you reviewed your insurance coverage with your agent or broker to ensure you have enough?  If you bought a policy and it has been 10 or even 20 years ago, it may be time to upgrade or purchase additional insurance just to be sure you have enough.

 

*Information included in this blog was obtained from Social Security and Veterans Affairs.  You can review online at :

https://www.ssa.gov/benefits/survivors/ifyou.html

https://www.benefits.va.gov/compensation/claims-special-burial.asp