Nobody wants to think about death, least of all about their own funeral. The insurance industry even lets you plan for this bitter truth. Be it for your own self or for a dear one, you can opt for a funeral insurance plan and avoid worrying about the expenses lest the insured faces an untimely death.
What is Funeral insurance?
Funeral insurance plan is a modified version of life insurance coverage which pays of a lump sum amount when the insured passes away. The benefits obtained from the policy can be used to cover the funeral related or burial costs, and also goes by the name of burial insurance and final expense insurance.Why funeral expenses are considered significant?
The time after death is as it is very challenging for the near and dear ones of the individual who has passed away. Along with the emotional distress, it brings about change in financial conditions also, especially if he or she had been an earning member of the family. Even if it’s an unmarried individual, the funeral expenses will still be considered as a necessary expense.What are the benefits used for?
The funeral expenses after an individual’s demise might run quite high. The proceeds from such an insurance policy will help to pay those expenses, without making them to be a burden for the family members or dear ones of the insured. The post death expenses might include expenses for the casket or chest, the cost for embalming, headstone, transportations, flower arrangements, cost of funeral or burial plot, visitation, memorial costs and a lot more. It might also be used to pay for the cremation or the farewell services. And it’s not necessary that the expenses will have to be used for the burial costs only. It might also be used to pay off specific debts of the insured individual, the medical bills, taxes or used to financially support the named beneficiary on the policy.Other aspects of Funeral Insurance
Several other aspects related to Funeral Insurance make it a viable option for individuals. 1. There are no age limitations for purchasing a funeral insurance policy. One can even buy it at an advanced age to cover their funeral or burial expenses. 2. This form of life protection comes at a pretty cheap rate, but offer timely assistance after the demise of the insured. 3. One can even qualify for a burial policy by waiving off the medical exam. However, no medical test would mean that the cost of premiums would increase as compared to a term life insurance policy. Still, it’s low-cost as compared to a whole-life policy. However, the death benefits offered by funeral expense polices are usually limited. Thus, though the proceeds are obtained as a lump sum amount, insurers put a cap on the maximum cover amount that the beneficiary will receive. As a result, it can be used to pay for the immediate expenses and is usually chosen as supplementary coverage. Nevertheless, it’s not recommended as a favorable inheritance option.Blog Category