As the name implies, funeral insurance is a policy which pays a predefined amount to your family for covering your funeral expenses when you die. Agreed, you wouldn’t want to think about this, but look at it the other way. If you do have funeral insurance, you are at peace of mind, and know that your funeral cost won’t put any financial burdens on your family.
A funeral insurance policy is offered by many insurance providers so you do have a lot of choice in terms of premiums and coverage. As such, think about the kind of funeral plans you want, set a budget for them, and accordingly, choose an appropriate insurance provider.
If you pass away, many costs can incur, and all of them may not be related to your funeral. On an average, burial services cost between $5,000 and $20,000. Your loved ones may also have to bear other expenses or debts such as your card bills. All these can burden your family, and that too, during a distressing time.
Since your family may not immediately have money to cover all these sudden expenses, you should plan ahead and buy funeral insurance. There are many benefits of doing this, but worth mentioning is the fact that the amount your family will get will not be restricted to your funeral expenses. Your family will be able to use it in any way that they want.
A research shows among the people who have funeral insurance, 51.2% are aged between 50 and 74 years. However, in some cases, consumers can be as young as 20 years.
Funeral insurance differs from funeral bonds in the sense that they offer more flexibility. As already mentioned, they can be used for any purpose, not just your funeral. On the other hand, funeral bonds are solely for your funeral only.
Keep in mind that funeral bonds operate like a savings plan. So if you have not put in an enough amount, your family will need to cover the rest of the expenses themselves.
If a claim is made for funeral insurance, the coverage amount is paid within a day from when your family completes the paperwork. Even if you have not paid that full amount in premiums, your family will still get it. The only thing is that you should pay your premiums regularly to ensure that your family does receive the amount, which you and your insurance provider agree upon.
Generally, funeral benefits range from $3,000 to $15,000. Some funeral insurance policies may also pay your family three times this amount if you die accidently.
In many a cases, you can qualify for funeral insurance easily with most providers. Your medical conditions have no effect on your applications.