Funeral insurance can help alleviate the financial burden on surviving family members, and extended family members. Quite often I will hear of the family pitching together financially to help raise $10,000 or $20,000 to pay for a funeral and other costs such as legal, last debts. It puts a strain on family members in an already tough time emotionally as for same it adds to the financial burden of having to travel and time off work. This type of burden can be avoided by getting basic funeral insurance, because at the end of the day, someone will pay for it. The funeral will be paid either by insurance proceeds, money in the bank, or family members, but it’s an expense that cannot be escaped.
What is Funeral Insurance?
Funeral insurance is an easy to get and affordable insurance which will pay for funeral expenses and is normally between $5,000 and $20,000. Acceptance is normally automatic, the cover is for life and premiums (depending on the insurer) are guaranteed for life. There are a few points to understand about funeral insurance when you take it out in the first few years.
- You can take out funeral insurance between ages of 55 and 85
- The insured person is immediately if death is caused by accident
- If death is caused by any other means within the first 2 years, all premiums are refunded , but the insured about is not paid out.
- After the first two years, the insured person is covered, whatever the cause of death.
In my opinion, I think it’s a very good affordable solution. Think about this, if the insured person does die in the first two years by a sickness, at least you get all your money back, so there is nothing lost, then after two years you get all the cover.
Why does funeral insurance have that 2 year limitation?
This is so people do not scam the insurer, because everyone would just wait until the last moments, then pay one or two months premiums then claim the full insured amount. For example, they could pay $120 in premiums and claim $20,000 in benefits. A product like that wouldn’t last, and others would not have this type of cover they need. Funeral insurance needs to make sense for everyone.
How much does funeral insurance cost?
There are a number of providers for funeral insurance so please check with us before you make any decisions on who is suitable for you and the premiums. Using only one company as an example, a monthly premium to insure a 70 Year Old non smoking male would only be $94.15. Remember that this premium will not increase (guaranteed) and if the insured person dies by accident in the first two years, all of your premiums are refunded, and after two years then they will pay out when death occurs by any means.