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Do we really need funeral insurance?

How do you plan to pay for your funeral? Have you thought about how much it may cost? Have you thought about those you leave behind and how they would deal with the cost of your service?
This isn’t a cheery topic, but it’s one you need to think about. It’s a good idea to consider your family and how they’ll manage financially. With these matters in mind, funeral insurance can be a good option.

Average cost of a funeral in 2020

Funeral costs continue to rise. In fact, according to a report by Sun Life, the cost of a basic funeral in 2020 is at an all-time high of £9,493, which is 3.1% higher than the same funeral expenses back in 2018. The costs included flowers, funeral notices and professional fees.

This is the average cost of a funeral, which means prices may be slightly lower in some cases. However, funeral costs are set to rise over the coming years. This might explain why things such as funeral insurance and funeral plans have become so popular lately.

What does a funeral plan cover?

Funeral plans vary depending on the insurer and the type of policy you buy. Before signing the contract for any policy, it’s a good idea to read the terms and conditions first. You’ll know exactly what’s covered, or not, and how the insurance works.

Keep in mind not all policies cover the cost of the burial place, and not all plans will cover the costs for the funeral director, flowers and catering. Again, it depends on the specific policy as to what’s covered or not.

If you’re unsure of what a policy covers, it will help to contact an insurance agent for information and guidance. They’ll be able help you choose the right plan for your circumstances.

We’ve put together some questions to ask the agent; the answers will give you a better understanding of the policy:
  • Are there any cancellation fees? In case you decide to go with another funeral plan or just want to opt out. Some insurers may charge a hefty cancellation fee.
  • What does the policy include? Be sure to ask for specific details on what’s covered and inquire about any other fees/costs.
  • Does the policy allow you to choose the funeral director?
  • What happens if the director I chose goes out of business?
  • If the plan allows me to pay installments, how long do the installments last? Will I have to pay any interest?
Benefits of funeral plan

Peace of mind: There are many benefits that come with a funeral insurance plan. For instance, if you’re the main earner in your home, what happens when your salary stops? Who will pay the mortgage/rent, utilities, etc.? How will they pay these expenses, plus the expense of your funeral?

No medical exam required: Unlike life insurance policies, no medical exam is required to purchase most funeral insurance plans.

Provides cash quickly: Funeral insurance provides cash often within 48 hours of a person’s death. The money is paid directly into the beneficiary’s bank account, where they can use it right away to pay for funeral expenses.

Support and funeral assistance: Depending on the policy, you may find funeral insurance offers support and financial assistance to your beneficiary. Support may include bereavement counseling, legal assistance, obtaining the death certificate, or even help organizing the funeral service.

Insurance riders: Some funeral insurance policies give you the option to buy a rider. Each policy will vary as to the type of riders offered. Riders are optional, and so will cost extra. One helpful rider provides your family a set amount of money for several months after your death. The money can be used for whatever your loved ones may need.

Travel plan: Another option offered by some funeral policies is a travel plan. This is a plan that can help with travel costs associated with repatriation of the remains, which also covers travel for an accompanying person. This is an excellent option of you pass away while on a trip.

Some travel plan cover lost baggage, medial costs, and more. Some plans may also help pay and co-ordinate with a local funeral home director. You’ll rest assured that everything’s taken care of if you should die while traveling away from home, even if you’re in another country.

As you can see, having a funeral insurance policy in place offers many benefits. The greatest benefit is the peace of mind knowing your loved ones will have the financial help they need after you pass.

About Boris Dzhingarov

Boris Dzhingarov graduated UNWE with a major in marketing. He is the CEO of ESBO ltd brand mentioning agency. He writes for several online sites such as Tech.co, Semrush.com, Tweakyourbiz.com, Socialnomics.net. Boris is the founder of MonetaryLibrary.com and cryptoext.com.

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Monetary Library If you are looking for business or financial advice you are at the right place! Monetary Library's team is following up the everyday trends and we hope you find the information here useful for your needs. If you have any further ideas and advice feel free to share with us!
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