Most people do have life insurance policies with coverage of around $100,000.00 or $160,000.00 depending on the life insurance policy you have.
But actually although the life insurance policy you bought may have a value of $100,000.00 or $160,000.00 or more the average payout for life insurance upon someone's death is between $5,000.00 to $15,000.00
Mostly the life insurance pays just enough to cover the funeral costs and not everything else.
Some life insurance policies may pay out around $25,000.00 to $30,000.00
But most Life Insurance policies payout $5,000.00 to $15,000.00
It's a good idea to review the terms and conditions of the life insurance policy you get to be sure it's gonna pay out a death benefit in the amount that will actually help pay for costs that the person has left behind in debt and the funeral costs.
Some people prefer to pre plan their funeral and pay for their funeral upfront and that way their final wishes will be taken care of as they wish.
I thought about taking out a life insurance policy on myself before but decided to just pay for my funeral ahead of time even though it seems morbid.
But we are all gonna die so I had no issue with paying for my funeral ahead of time so that my family doesn't have to do anything other than come to the funeral when I die.