Funeral Insurance
Have you ever heard about funeral insurance? How is it different from Life Insurance?
Having life insurance or health insurance is a common thing, but not many people are aware of the existence of funeral insurance. It may not be a pleasant topic but it happens to everyone and the more preparation the deceased makes, the less traumatic it will be for the deceased’s family.
The basic idea of funeral insurance is to help the family to cover the funeral cost. Some funeral homes offer this type of insurance as part of a prepaid package called a “Pre-Need Funeral Arrangement.” Often when a person passes away, the family will have to pay a substantial amount of money for the funeral home, the casket, the flowers, the service, and also burial expenses. When you have funeral insurance, however, you won’t need to worry about funeral costs anymore. The family won’t be burdened with additional expenses required to have a proper burial. So funeral insurance can be an integral part of Estate Planning.
Benefits of Funeral Insurance
So, what are the benefits of funeral insurance, after all?
1. The family won’t have to deal with loads of funeral expenses and costs since the insurance will take care of everything.
2. The family can mourn properly as they won’t have to deal with any financial difficulties and situations.
3. Funeral insurance is quite flexible, so you can arrange things to suit your needs.
But the major benefit of funeral Insurance  is that if it is purchased through a funeral home, it allows the deceased to choose their funeral and get exactly the casket they want and all the features they desire, while they are still alive.
Another benefit is that the price is locked in and won’t change. It is simply a matter of making the premium payments. The price of the funeral can’t increase because what you chose is pre-paid for by the insurance policy. This also relieves the surviving family members of deciding which casket the deceased would have wanted and what type of flowers are right, etc. Although these seem like simple decisions they are more difficult when you are grieving.
Won’t Life Insurance Do?
Many people think that other kinds of insurance can serve as funeral insurance. The proceeds of a life insurance policy can certainly be used to cover funeral expenses but that leaves less available for the purpose that it was originally intended for, which is to provide for the needs of a loved one. And in this case funeral expenses won’t be locked in, so over the years they can eat away at the remainder left for the family.
Because funeral insurance is a way for funeral homes to pre-sell insurance packages, the health requirements for funeral insurance are much less stringent than for life insurance, in that almost anyone will qualify, unless you have already been diagnosed with a terminal disease and even then you may still qualify.
What should you do when you want to have such funeral insurance?
1) First of all, you can get quotes on the Internet.
2) Once you have gotten a couple of quotes you will be armed with enough information to talk to a local funeral home.
3) If you think you might not be in your current location you may want to consider accepting one of the internet quotes rather than locking yourself into a particular funeral home.
4) Be sure to talk with your family about your funeral plans, so they will know what your wishes are and what provisions you have made.
See Also:
- Term or Whole Life Insurance- Whats The Right Option for You?
- The Life Insurance Safety Net
- Preparing for a Life Insurance Medical Exam
- The Effect of Renovation on Your Homeowner’s Insurance
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