Help protect your loved ones from rising funeral costs.

After losing a loved one, family members want to celebrate that person's life and support one another through the grieving process. Too often, though, they must turn their focus to paying unanticipated funeral bills.

"Families can avoid squabbling over finances and scraping to pay for funeral costs by planning before that day comes," says Sean Scaturro, Advice Director for USAA. Avoiding plans for an unexpected death may only make the circumstance more difficult.

Part of that discussion should involve life insurance. Life insurance can provide an income-tax-free payout to your beneficiaries.

Three ways life insurance can help with final expenses

1. Final expenses can add up.

The average North American funeral can cost between $7,000 to $10,000. When you add other expenses like end-of-life medical care and legal fees the price can climb. Families who haven't planned for such a big expense may have to rely on credit cards or fundraising to cover the costs.

Seeking community support has become a norm to help offset the growing challenge for families. Crowdfunding sites like GoFundMe see more than 125,000 memorial fundraisers per year.

2. Life insurance payouts may be available quicker than other resources.

Some family assets like real estate, valuables and even investments can take a long time to exchange into cash. Unless there's ample cash available, families may find themselves without resources.

Life insurance claims usually process quickly so beneficiaries can cover final expenses. Some insurance companies may offer an assignment form so benefits can be paid directly to a funeral home.

3. Life insurance can make estate settlement easier.

When it comes to splitting up and dividing out an estate's assets, cash is easiest. Not only can it be a chore to distribute certain assets, but emotions can heighten as well. One heir may want the cash from selling a home, while another may want to keep the home. Life insurance can provide cash to help balance out needs and keep everyone satisfied.

Life insurance proceeds can also help to offset tax liabilities or costs from selling or liquidating assets. It can buy time so beneficiaries are able to make the best financial decisions.

Factors to consider

Waiting can be costly.

Prices for life insurance usually increase the longer you wait. Waiting just five years can increase your monthly premium substantially. Getting life insurance while you're younger can save you money over the length of your policy.

While price is a major deciding factor for most buyers, be sure you're buying a policy that aligns to your goals. Term insurance can cover final expenses. But most term policies have a guaranteed term period maximum of 30 years. After that, the policy usually decreases in value or increases in cost.

Permanent life insurance like whole or universal life, is meant to last a lifetime. These policies may be better aligned if your goal is to ensure that money is available for final expenses. There are flexible options that allow you to pay premiums over a reduced number of years, like until age 65 or for the first 20 years of the policy. Once complete, the policy is “paid up” and requires no future premiums.

Waiting can be risky.

Perhaps the biggest risk is a potential change in health. Unexpected health issues can increase premiums or even make you ineligible for some life insurance.

Some policies, such as guaranteed issue life insurance, offer guaranteed acceptance without having to provide medical history or health information. Because you don't have to provide health information, these policies provide smaller benefit amounts compared to other life insurance policies. However, they make getting insurance coverage an option for everyone, especially if your goal is to offset final expenses.

Your individual plan is unique and should have a solution designed to meet your needs. It may be valuable to speak with an insurance specialist or other reputable financial professional to get a specific life insurance strategy in place.

Figuring out how to pay for final costs is best done now, before the imminent need. Start the talk with your family today and consider if life insurance is a potential solution.