The Senior Scene

By Omar Kaywan

Although it may seem like a grim topic, it’s important to be prepared and have peace of mind about not leaving your family with tens of thousands of dollars of debt for your end-of-life expenses. And while some people may think a simple life insurance policy will cover everything, this is just one of the many end-of-life expense myths out there. Here are five:

Funerals are a set cost.

In reality, funeral costs can vary drastically. Not only does your family need to consider the cost of the plot, tombstone, casket, etc., but also any religious ceremonies, burial, and if your body needs to be transported, which all incur an extra fee. Even the most basic funeral expenses can be difficult to afford, and the bill can add up quickly.

You don’t need to consider final expenses if you have life insurance.

Life insurance is important for everyone to have, but typically the money from life insurance is used to handle other expenses like mortgages, health, etc. That money can go away quickly once those big areas of life are settled.

Getting a final expenses insurance policy can give you peace of mind knowing your family will have help covering funeral costs, other outstanding debts, etc. It is specifically designed to cover costs associated with end-of-life expenses unlike traditional life insurance, and it serves as a financial safety net that offers protection and support to your loved ones.

Only old, sick people need to consider end-of-life expenses.

Whether you’re 45 or 75, life is unfortunately unpredictable. It’s important to begin planning and preparing as early as possible, so your family isn’t entirely blind-sided if something happens and left with an unmanageable amount of debt during their grieving process.

Getting more insurance will be expensive.

Getting a final expense policy doesn’t have to be expensive. Policies are customizable to what your family needs, and can cost as little or as much as you want them to, based on what your family requires. And policies are typically flexible. You can usually adjust your coverage amount or review your beneficiaries as your situation evolves.

If I get cremated, it won’t be expensive.

While cremation is cheaper than burial, the process still can leave your family with serious debt. Your burial/funeral process shouldn’t be something you feel the need to compromise on, and by getting a final expenses insurance policy, you can be sure you never have to compromise or leave your family burdened with difficult decisions and sacrifices.

Omar Kaywan is a co-founder of SmartBunny, a Bellingham-based online insurance broker.

The financial demands of eldercare are straining the budgets of many military families, with new data highlighting the growing burden as service members take on caregiving responsibilities for aging relatives.

A survey conducted by First Command Financial Services Inc. found that 63 percent of middle-class military households—defined as commissioned officers and senior noncommissioned officers (E-5 and above) earning at least $50,000 annually—are now providing care for elderly family members. That’s a significant jump from 13 percent in 2012, when the company first began tracking eldercare trends as part of its First Command Financial Behaviors Index, which assesses trends among financial behaviors through a monthly survey of approximately 530 U.S. consumers 25 to 70 years old with annual household incomes of $50,000 or more.

Eldercare costs are presenting a significant challenge for many, with 58 percent of the survey respondents reporting higher-than-expected expenses, and 53 percent calling the costs a severe financial concern.

The average caregiving family spends $1,647 per month, with expenditures directed toward home care, nursing homes, and other healthcare services.

According to First Command’s researchers, military families are taking on these responsibilities at higher rates than their civilian counterparts. Among the general population, 23 percent report caring for an elderly relative, with average monthly costs slightly higher at $1,839. Civilian caregivers similarly report financial strain, with 56 percent citing unexpected costs and 34 percent identifying eldercare as a severe concern.

Looking ahead, 31 percent of military families and 21 percent of general-population households anticipate providing eldercare to a parent or other elderly relative in the future, such as a grandparent, aunt, or uncle.

Mark Steffe, First Command’s president, stressed the importance of financial planning to navigate the economic challenges of eldercare.

“Nine out of 10 military families who are caring for an elderly family member said they planned in advance for the costs,” Steffe said. “One out of four sought help from a financial advisor. Working with a knowledgeable financial coach is a prudent way for military families to prepare for and deal with the economic realities of eldercare while continuing to pursue their own financial goals.”

As Congress struggles to ensure Social Security is fully funded far into the future, it will have a new problem to deal with. If President Trump carries out his vow to deport all illegal immigrants in the U.S., Social Security will face a more significant deficit.

Studies by think tanks and the Congressional Budget Office have shown the Social Security Administration (SSA) receives billions each year from an unexpected source: Legal and illegal immigrants. Some economists project a broad drag on the economy as a result of Trump’s actions — and it could cost Social Security roughly $20 billion in cash flow annually, according to actuaries at the SSA, which sends benefits to 68 million Americans each month, totaling $1.5 trillion last year alone.

Foreign-born workers in the United States contribute to Social Security at the same tax rate as everyone else but have lower predicted Social Security benefits than native-born Americans because, on average, they earn lower lifetime wages and have fewer years of employment that count toward their calculated benefits.

In addition, recent trends suggest that foreign-born workers are increasingly returning to their home countries to retire. As a result, many who pay into the Social Security system during their working years may not be eligible to receive benefits because non-residents can only do so under certain circumstances. Foreign-born contributors can generate net gains for the Social Security trust fund by not fully drawing benefits. 

As far as illegal immigrants are concerned, in 2022, they contributed $25.7 billion in Social Security taxes, typically by working under borrowed or fraudulent Social Security numbers. Unauthorized immigrants, however, are ineligible to claim Social Security benefits. Source: The Senior Citizens League, a non-profit advocacy organization supporting older adults’ benefits.