Now, people can arrange for their funeral expenses in advance through a funeral insurance policy. This pre-arranged cremation or burial insurance gives protection against the inflated costs of the funeral. Because the most important benefit of this insurance is the payment for the policy is made at today’s price. Apart from that, this insurance is better than a savings account or other ‘Over 50s’ life insurances for this particular purpose.
Many people worry that their loved ones might have to pay when they die if they don’t leave enough money to arrange their funeral.
Nobody wants to think about their funeral. But when you don’t want to burden your family with the cost of your funeral or any other related obligation, then this pre-funded insurance can be a perfect solution for you.
What is Funeral Insurance?
Funeral insurances can be referred to as a small version of life insurance policies that people can use to pre-arrange their burial or cremation expenses. They can pay for their funeral expenses in advance at today’s price by taking up funeral insurance. So, it is an excellent way to avoid inflated costs in the future.
In this way, people can have a separate small policy. They can avoid a long-term policy for a specific purpose. Apart from that, in the past years, the average cost of a funeral has risen noticeably. So affording a funeral at current prices would be a part of a great life-end financial plan.
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Why do you need funeral insurance policies?
Along with funeral insurances, there are other life insurance policies as over 50 plans or savings accounts and many more to bear future costs. But Funeral Insurances give some extra benefits to policy takers. Some of them are as follows:
Protection against rising costs
Insurance payments are made at current prices, which means no more fees for the inflated costs arising in the future. Funeral insurance will also safeguard your family from paying extra for the funeral in the future.
No extra payment
Services vary from policy provider to provider, but most of the comprehensive plans ensure that all the plan’s services are taken care of. No additional amount is needed to pay for the included services. For this policy, it does not matter how far and when the funeral is going to take place
Personal wishes are taken care of
Many providers allow their clients to include their wishes for their funeral to the policy services. These wishes could be even tiny things like specifying funeral flowers, a specified location, a song to be played, or anything. Service providers may also offer additional services. Those services may include quality coffins, access to see the deceased, and transportation to the guests.
You do not overpay
With other plans like life insurance policies of over-50s,’ you are committing to regularly paying for the installments for the rest of your life. It’s a long term process, and have to pay much money altogether. But if a small term funeral policy will serve your purpose without demanding so much money.
Other than that, some other plans like saving your money through a bank account cannot guarantee the same that can be provided by a funeral plan. Saving money in the banks depends on the rate of interest to keep pace with the rising costs. it gets unlikely to keep pace for the savings account when the rate of interest is low
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The safety of your money is ensured.
Your money is in safe hands with a funeral policy because your money is placed in only either an insurance policy or in an independent trust fund. You are also able to check the independently audited statements every year. The funeral director will pay you the money when needed.
Suppose you are planning for a lump sum amount. In that case, you can pay a part through credit cards because banks are obligated to give protection over a certain amount of credit card transactions. So your money is protected if anything goes wrong.
You can choose the way of payment.
Usually, the payment is made in a lump sum amount; providers offer different payment plans for your convenience. You can make your payment in installments over the 12 months in a year without any additional costs. The installment periods can be longer.
Third-Party costs can be included.
Funeral insurances allow you to include third party costs along with the basic expenses like coffins and venue. These third-party costs, often called disbursements, include using crematorium, the celebrant’s cost, and doctors’ fees.
Now you can give it a think to do funeral insurance, which will reduce the financial burden for your family in time of your absence and help them pass the difficult time with this little support. So, are you planning to take one? Share your views on these issues in the comment section.