The total cost of a funeral is increasing gradually, and there is no sign of reduction. This is the reason, the death of a loved one can cause a serious financial toll on the family. But there are several ways people plan and save for funerals ahead of time and buying a funeral insurance plan is one of them.
What is Funeral Insurance?
A funeral insurance policy is a type of life insurance designed to pay a particular sum of money to help the family cope financially with the funeral expenses. The insurer pays a lump sum cover to the beneficiary of a policyholder so they can use the money to cover his/her final costs. family can also use the money to pay for other expenses like credit card bills, medical bills, mortgage and education of kids, etc. This is the best way to ease the financial problem of your family when you are no more.
Why do people buy funeral insurance?
Most people buy funeral insurance plans to financially protect their families when they have passed away. As funeral costs are going up day by day, arranging funeral services for a family member can be difficult. Not only this, a funeral is one of the large expenses of life and comes suddenly that family members need to manage in a short span of time. This is where having a funeral insurance plan comes into play. The family of a deceased person (policyholder) can easily file a claim to get the money for funeral arrangements. In this way, they can effectively arrange funeral services without borrowing money from somewhere else.
Do you need to buy a funeral insurance plan?
You don’t need to cover the costs of your funeral. But planning ahead of time and saving some bucks could help you give your family peace of mind. Since the death of a family member is a challenging and sorrowful time, having quick access to some money for funeral payments gives financial relief to your family. This is the reason, buying a funeral insurance plan could be a wise decision to provide your family with financial protection.
How to get the best out of a funeral insurance plan?
Once you have decided to buy a funeral insurance policy, make sure to visit multiple insurers and get quotes. Then compare all quotes to find out the best option that meets your individual needs by offering enough cover at a lower premium rate.
Also, check the reputation and credibility of funeral insurance providers before signing the agreement. If you are unable to make monthly payments according to the payment schedule, discuss the issue with the insurer to create a custom payment plan.
Choosing the right plan as per your needs is the only way to make sure that your family will get enough coverage to pay for your funeral and other costs associated. Remember, the funeral plan you choose must suit your current financial situation and lifestyle.
Benefits of funeral insurance policy
Buying a funeral insurance plan offers plenty of benefits like:
- It makes a difficult time of a loved one’s death easier by reducing the financial stress of paying for the funeral expenses.
- Funeral insurance is very easy to apply as there is no health test required. However, the insurer may ask some health-related questions while preparing a quote.
- The death of a bread earner can have a serious financial burden on the family and they may not have enough money to cover funeral expenses and other things like unpaid bills, medical payments, etc. This is where funeral insurance cover helps the family with cash flow to keep them running
- Funeral insurance is free from inheritance tax as the claims would not count as your estate.
Funeral insurance can be life-saving for your family when the worst happens. They can use the money for funeral arrangements and pay off your credit card balance, medical bills, and other loans. But buying the right plan is important to get the most out of your money. Getting multiple quotes and comparing them all to choose the best policy is a great way to get enough cover without paying higher premiums every month.