What is Funeral Insurance?

When someone passes away, their family members may be left with the burden of having to arrange and pay for the funeral. Funeral insurance provides a lump-sum in the case of death or terminal illness. A professional insurance company can provide a policy that will allow a beneficiary to receive funds that can go towards funeral expenses, as well as medical and legal costs.

What is Funeral Insurance?

Funeral insurance actually goes by a few different names, which can prove to be confusing to the average consumer. It is also known as pre-funded, burial, or final expense insurance. The policy is designed for those who do not have money set aside for funeral expenses and do not wish to put this burden on their loved ones. A funeral can lead to costly expenses and financial strain. Speaking to an insurance provider can help you find a plan that will help to cover the costs of a funeral and take this burden off of your loved ones.

Tips For Considering Funeral Insurance

When deciding on what to consider when it comes to funeral insurance, it is important to note that there is not a one size fits all plan. Professional insurance providers will be able to assess your individual needs and provide you with a plan. In order for the plan to best match what you need, it is important to consider these tips.

Discuss options with your family and a professional attorney, including discussion surrounding burial policies. Speak to the funeral director directly, asking the necessary questions. These could include price guarantees or protocols on moving funeral arrangements to different funeral homes. All agreements you make should be in writing and nothing should be signed without you being present. While funeral service insurance can give you peace of mind, it is important to decide which coverage option may be right for you.

Types of Funeral Insurance Coverage

As mentioned previously, there is no universal funeral insurance coverage that works for every policyholder. While there is no standard, this allows for you to discuss flexibility with your insurance provider. Variations in coverage can help to meet your unique needs.

Pre-need Insurance

This is a type of insurance policy that you would purchase from a funeral home directly, typically with the help of an insurance agent. This can also be called prepaid funeral insurance. If you purchase pre-need insurance, then you have the opportunity to make prior arrangements. You are able to pay this expense off at once over. This type of insurance policy only covers the expenses associated with the funeral.

Final Expense Insurance

This type of insurance policy is purchased from a professional insurance company. When someone passes away, there is often more expenses than just the funeral itself. Final expense insurance helps to cover those extra costs. Your beneficiary you have listed will get the funds. This will allow them to cover the funeral, as well as legal fees or medical costs.

Funerals can cause financial strain and costly expenses. Planning ahead is a wise financial decision. A funeral insurance policy provided by a professional insurance provider can allow you to have peace of mind when it comes to affording funeral expenses.