Pre-need funeral insurance is a type of permanent life insurance that pays for your funeral before you die, easing the financial burden on your loved ones. Most policies cover the cost of standard funeral home services, cemetery burials, and funeral merchandise. They can also protect your beneficiaries against inflation. You can buy pre-need funeral insurance in amounts ranging from $10,000 to $25,000, and there are usually no medical exams required.
Another major benefit of pre-planning is the ability to spread payments out. Funeral home services can be expensive, so it’s wise to buy a funeral plan that will cover the costs. You can then leave any leftover money to your family. Life insurance policies are also 100% transferable, which means that if you die unexpectedly, your funeral arrangements will go through without any hassle. This is a huge relief to your loved ones.
The cost of funeral insurance varies widely. Some policies cost more than others, so be sure to carefully review the fine print and research the insurance company to be sure you’ll be happy with your coverage. Some financial experts recommend keeping your life insurance money in a high-yield savings account instead, but funeral insurance can help pay for a funeral. You can also protect the money in your life insurance policy by adding burial insurance to your policy.
Some insurance companies sell plans that have monthly premiums that increase over time. If you have a fixed income, you may want to consider a plan with a fixed monthly rate. Otherwise, you risk losing the coverage as premiums increase. Another risk of a policy that can expire is that you outlive the policy, causing financial strain on your loved ones. Therefore, it’s vital to understand why funeral cover is so important before buying a policy.
Another important reason to buy funeral cover with your life insurance is to protect your family and beneficiaries. You can’t be sure that your loved ones will prioritize the cost of a funeral in case you die. However, if you do, you can always rework your funeral plan by reducing the cost of the insurance. By doing so, you can lower the cost of the funeral and reduce your premiums. Many insurance companies sell funeral insurance directly to consumers.
Another reason to buy funeral cover with your life insurance is that it allows you to get enough coverage to pay for your final expenses. However, funeral insurance policies tend to have lower coverage limits, and typically cap at $40,000 or $50,000. In contrast, regular life insurance is meant to pay for supplementary income, and carries higher coverage levels. Therefore, if you want maximum coverage, you should look into final expense insurance. There are many different types of insurance policies, but funeral cover is a great option for those who want maximum coverage.
A funeral is an expensive expense. The median cost of a funeral is $7,848, and other final expenses may add up. It’s important to consider all of these costs when choosing a funeral. Even a simple cremation can cost several thousand dollars, which can put your family in a financial bind. That’s why buying a funeral cover policy with your life insurance can make a huge difference in the amount your loved ones will need to pay for your funeral.
