Death's Costliest States, Ranked
Death's Hidden Expenses: Top States to Watch.
The Financial Burden of Death: Understanding End-of-Life Expenses in the US. A recent survey reveals that nearly one in six Americans incur over $1,000 in debt following a loved one's passing. To mitigate this financial strain, Forbes Advisor examined funeral costs and end-of-life medical expenses across all 50 states
The Top 10 Most Expensive States to Die In
Dying can be expensive, and some states are pricier than others. We've analyzed funeral costs and end-of-life medical expenses to determine which states have the highest cost of dying.
1. Alaska: The Most Expensive State to Die In
Alaska tops the list with a total cost of dying of $33,742.17. End-of-life medical care costs an average of $24,408.38, while funerals with a viewing and cremation cost $9,333.79.
2. Hawaii: High Costs for End-of-Life Care
Hawaii ranks second with a total cost of dying of $32,722.53. End-of-life medical care costs an average of $19,292.07, while funerals cost $13,430.46.
3. Massachusetts: High Funeral Costs
Massachusetts ranks third with a total cost of dying of $29,481.55. Funerals cost an average of $11,134.52, while end-of-life medical care costs $18,347.02.
4. New Hampshire: High End-of-Life Medical Costs
New Hampshire ranks fourth with a total cost of dying of $28,279.05. End-of-life medical care costs an average of $19,650.54, while funerals cost $8,628.51.
5. Washington: High Costs for End-of-Life Care
Washington ranks fifth with a total cost of dying of $28,156.20. End-of-life medical care costs an average of $19,520.19, while funerals cost $8,636.01.
6. California: High Funeral Costs
California ranks sixth with a total cost of dying of $27,428.40. Funerals cost an average of $10,091.60, while end-of-life medical care costs $17,336.79.
7. New York: High Costs for End-of-Life Care
New York ranks seventh with a total cost of dying of $26,413.52. End-of-life medical care costs an average of $17,027.21, while funerals cost $9,386.31.
8. Connecticut: High End-of-Life Medical Costs
Connecticut ranks eighth with a total cost of dying of $26,360.44. End-of-life medical care costs an average of $17,874.50, while funerals cost $8,485.95.
9. Vermont: High Funeral Costs
Vermont ranks ninth with a total cost of dying of $25,925.21. Funerals cost an average of $8,621, while end-of-life medical care costs $17,304.21.
10. MAINE: Rounding Out the Top 10
Maine ranks tenth with a total cost of dying of $25,790.60. End-of-life medical care costs an average of $17,499.73, while funerals cost $8,290.87.
How Life Insurance Can Pay for End-of-Life Expenses
The loss of a loved one is an emotionally challenging experience, often compounded by the financial burden of end-of-life expenses. Medical care, funeral costs, and other expenses can quickly become overwhelming, causing significant financial stress for the grieving family.
Life insurance can provide a vital safety net, helping to alleviate the financial burden and ensure that your loved ones are protected. Despite common misconceptions, life insurance is often more affordable than you might think.
Covering Funeral Costs
The average cost of a funeral with viewing and burial is $7,848, according to the National Funeral Directors Association. This expense can vary significantly depending on factors such as:
- Type of funeral (burial or cremation)
- Costs associated with each type of funeral
- Whether a viewing is held
- Other details specific to the funeral
A life insurance death benefit can cover some or all of the insured's funeral expenses, depending on the amount of coverage purchased.
Settling Outstanding Debts
If you have outstanding debts, such as a mortgage, credit card balances, or medical bills, life insurance can help ensure that these debts are taken care of. A life insurance payout can be used by beneficiaries to settle these debts, preventing financial hardship and stress.
Replacing Lost Income
If you're the primary breadwinner, your passing could leave your family facing significant financial hardship. A life insurance payout can help replace your lost income, allowing your family to maintain their standard of living.
Covering Medical and End-of-Life Care
In some cases, illness can result in expensive medical and palliative care. Certain types of life insurance include living benefits, which allow you to access your own death benefit while still living. This can help pay for medical costs and other care needs.
Accessing your death benefit while still living reduces the payout available to your beneficiaries when you pass away. However, this can be a valuable trade-off if it helps alleviate financial and caretaking burdens while you're living.
If you're buying life insurance, be sure to ask your insurance agent about the living benefits available. Terminal illness or chronic and critical illnesses are common conditions that may make you eligible for living benefits, assuming your policy includes these.
How to Buy Life Insurance for End-of-Life Expenses
To ensure you purchase enough life insurance coverage, follow these steps:
1. Use a life insurance calculator to determine your coverage needs.
2. Shop around by comparing life insurance quotes from multiple companies.
3. Work with an experienced life insurance agent to determine which companies will offer you the cheapest life insurance rates based on your age and health.
4. Notify your life insurance beneficiaries that you've purchased a policy, providing the policy number and the name of the life insurance company.
By following these steps and investing in life insurance, you can help protect your loved ones from the financial burden of end-of-life expenses.
