Funeral Insurance: Family Convenience
One of the primary factors in choosing advance funeral planning is the convenience it offers family members. No matter how clear your wishes might be or how much time you put in to planning your burial arrangements, the details of the funeral – and the costs associated with them – almost always add a strain on family members during an already overwhelming time.
However, many people aren’t comfortable with funeral pre-plans, which are becoming one of the most popular ways to reduce family strain and cost. In a funeral pre-plan, a decision is made to work with a particular funeral home or cemetery, and you can pay all the costs up front, and at today’s rates. You can be as involved as selecting your own casket, or as detached as simply choosing the right burial plan and setting aside the funds.
What is Funeral Insurance?
Funeral insurance operates a little differently from a pre-need funeral plan in that there is more freedom of choice for your family once you have passed away. Instead of making all the decisions or choosing a location (and a price) for the memorial service and burial or cremation arrangements, you simply leave behind a lump sum to a beneficiary for use in covering part or all of the funeral costs.
Although funeral insurance is a very specific type of insurance, it is similar to life insurance or any coverage that pays out upon your death. The beneficiary you name (whether it is a spouse, child, or other family member) is entitled to the full sum, and the money may be used however he or she wishes. The amount of the payout depends on your personal policy, which you can either set at an amount you know your funeral is likely to cost, or above the figure in order to leave additional funds for those you love.
Of course, because there is no legal requirement that your beneficiary use the money for your funeral expenses, some people are wary of funeral insurance as a pre-plan option. However, financing a funeral is one of the biggest expenses your loved ones will ever incur, and the need to pay for it will arise whether they use funeral insurance or not. Having a policy on hand simply ensures that the financial burden will not fall on them at a time when money is the last thing on their minds. And because they have the freedom of choice, your family can make decisions that contribute in a positive way to their grief and bereavement.
Finding a Funeral Insurance Provider
Funeral insurance can typically be secured through two sources: funeral homes and traditional insurance providers. If you do choose to go through a funeral home, be sure that you understand any commission fees and the fine print regarding whether or not your family will be required to keep the money within that funeral home.
One of the best things about funeral insurance is that it can be purchased on top of an existing life insurance policy, and may not be subject to some types of inheritance laws. These are just a few more conveniences you can leave your family with long after you are gone.
Whether you’d like to offer your family the flexibility of funeral insurance or eliminate even more of their burden with funeral pre-plans, there are multiple options and price points to suit everyone. Death is a universal situation, and there are many companies out there doing their best to make it as painless as possible.