Funeral insurance is a kind of insurance specifically designed to provide for the costs associated with burial and interment of a deceased loved one. It is also referred to as burial, final expense or pre-need insurance.

For death is inevitable, it is a smart move to pre-plan this event. With a funeral insurance plan, not only does it make sure that one’s funeral is arranged and paid for in advance but also it unburdens and helps ease the stress of the family members or beneficiaries left behind. Basically, it’s a pre-paid arrangement so families or beneficiaries left behind only have to follow the plan as it is laid out.

Funeral insurance plans vary from the traditional whole life insurance, that includes funeral expenses or life insurance just intended to cover all of funeral expenses, to pre-need contract, policies or agreements that only cover funeral expenses.

Most insurance companies allow a coverage that includes any family member in the event that they should go first before the policy holder.

Most insurance companies include a funeral insurance cover of up to $15,000 with no medical requirements. This means that if you have health issues and have been rejected for other types of insurance before because of these, you will still be able to get some cover in place for your family with a funeral plan.

Generally, funeral insurance plan cost depends on the type of policy or contract bought and the age. Premiums can start from as low as a few dollars that can be paid weekly or fortnightly, monthly or yearly or a lump-sum payment (especially for people who are of retirement age).

The funeral insurance coverage may determine the kind of payment schedule plan. Variations may range from the single-premium policy where a lump-sum payment is made once. One can also have immediate coverage for the full death benefit or the graded death benefit where coverage amount increases over time. Also, there is the traditional whole life policy where the amount of coverage remains the same as long as payment of premiums is regularly paid. However, coverage ends once one stops paying.

There are many insurance companies and policies for funerals out there, so it is important to choose the right one. Here are some tips for considering funeral insurance:

  • Before buying a funeral insurance plan, find out first whether you already have a life insurance that includes funeral expenses or other savings that may be used for funeral expenses. Don’t buy an insurance plan unless it is necessary.
  • Make a research and review your state’s laws on pre-need insurance before you meet with a planner at a funeral home.
  • Make sure to have a discussion of your burial policy with your family and lawyer.
  • Do a thorough research on the different funeral insurance companies out there and options.
  • Take note that funeral insurance policies have a “free-look” period. This could be from 30 to 60 days where one is entitled to review the policy purchased and cancel the policy without penalty if you decide that you don’t totally approve of the plan.

Like everything in life, use caution in buying a funeral insurance plan. Make sure to review all its details, its terms and payment and its schedules. Be sure that you understand them.



Source by Laureen R Cownie

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