Funeral insurance – important factors you should not skip from view

Posted on Oct 10, 2017

Many seniors consider getting funeral insurance, but when they start looking for one, they find the process overwhelming. For the majority of them making a retirement plan means finding a way to pay for the expenses of the funeral. But there are cases when people have no idea how much money they need in case one of their loved ones passes away. But, if you or a member of your family want to make plans ahead, then you have the possibility to opt for a funeral insurance. Deciding which one of them is the right one for your needs, is not an easy process, but you can take your time to check the offers available on the market. Here is everything you need to know on this subject.

Estimate the burial expenses

When you are searching the market for funeral insurance you should understand what the policy has to cover when it comes to end-of-life expenses. You should know that the funeral cost is not the only one involved in the process, even if is this is the one that will require the largest sum of money. But the ones who are left behind, also have to cover the legal costs, the medical bills that remained after someone passes away and the other expenses they did not cover while they are alive. Every insurance provider can offer you help to understand what funeral costs include, because it is important to take everything into consideration.

Will you leave behind enough money to cover your expenses?

You should check your back account to see if you have enough money to cover these expenses. In case you cannot figure out by yourself this situation, you should ask a financial advisor to help you. In addition, it is important to know if your survivors have immediate access to your finances, because according to this aspect you will have to decide the amount of burial insurance you get. There are cases when funds are tied up in the bank, and the survivors cannot access them immediately to pay the funeral expenses. If your money is not immediately available you will have to see which one of your survivors is able to pay for the funeral.

What type of insurance do you need?

Nowadays different providers offer different types of policies, and you have to check their services and see which one of them is the right one for you. You may find on the market final expense insurance, burial insurance or funeral insurance. The main feature these insurances have in common is the sum the cover. But you should know that you will get less than if you would have a life insurance, because this type of policy is designed to cover only your final expenses. Your survivors will not receive supplemental income from this insurance. Therefore, you will have to decide if you need funeral insurance or it would be a better option to get life insurance.  Do not forget to check if you can get the insurance you want, because there are times when people could not afford a certain policy.