While life insurance, health insurance, car insurance, and homeowners’ insurance are considered by most people to be an essential expense, funeral insurance is a different story.
It is not that funeral insurance is not widely known, but because of its nature, it is understandable that most people simple do not want to know more about it. However, it is undeniable that funeral insurance, like the other kinds of insurance, is necessary to have in place to ease the stress for your beloved.
To better understand this, let’s dive into what funeral insurance actually is.
Funeral insurance is the name for a small insurance policy ranging from $5,000 to $40,000 in which expenses cover the costs for things like funeral products and services. You may be wondering: do I need funeral insurance?
The biggest benefit of funeral insurance is financial security for your family. A traditional funeral can amount up to $10,000 or more, which is a heavy burden for most people especially circumstances are not the best. If you have a funeral insurance policy, stress and grief do not have to appear so insurmountable.
Depending on the type of funeral service and burial you choose to have, the cost will vary after taking into consideration type, location, and services necessary. The most important thing to do to determine a price range is preplanning.
Things that Determine Cost of Funeral Insurance
There are many different aspects you must consider before estimating a logical cost of your funeral insurance. Factors like age, health, type of policy, and how much coverage you request are all components.
Not all the proceeds from your funeral insurance must be allocated to funeral expenses. The beneficiaries can use the funds however they like, which is why it is important to choose people you trust.
Because there are so many factors that play a role in choose funeral insurance, it is best that you plan ahead of time so that the process goes smoothly and without too much stress. Not only will it be easier on your family and friends, but you will also be ensuring a nice funeral.
Whole Life vs Term Insurance
A whole life insurance policy will be effective for your entire life if you keep up with the premiums. In comparison to whole life, a term life insurance policy runs for a specific time period i.e. 5, 10, 20, or 30 years. In buying funeral insurance, you should be aware of the type of policy you have.
This leads to the question: do I need funeral insurance if I already have life insurance? Considering that funeral insurance pays out more quickly than regular life insurance, many people purchase funeral insurance as a sort of supplement. This will guarantee that costs will be covered and not lie solely on the shoulders of your loved ones.
How to Apply
Depending on the company you buy the funeral insurance from, you can apply by phone, hard copy, or online. You request a no-obligation quote and then wait for a reply. You can always compare quotes from different companies to determine the best option for yourself.
In choosing a beneficiary, you should pick the person you trust to be the designated recipient of a life insurance claim proceeds. They should be the main person who is fully aware of your wishes when it comes to your funeral.
Why You Should Consider
If you are still on the fence, remember that having funeral insurance eases the weight of financial on top of emotional responsibilities for your family and friends. It is something unpleasant to think about for now, but it will save your loved ones a lot of trouble in the future