What is funeral expense insurance?
Funeral expense insurance is effectively a form of permanent life insurance, with a minor death benefit that those left behind can use for any purpose they see fit. This type of insurance is typically marketed towards seniors and is incredibly easy to purchase as, unlike other forms of life insurance, it rarely requires a medical examination. However, those policies which offer greater death benefits might ask policyholders to undertake a short medical questionnaire.
Funeral expense insurance is also a far more inexpensive option compared to other forms of life insurance. Typically, these insurance policies can be purchased for small amounts, such as $5,000 or $10,000. Upon the death of the policyholder, the insurance company will pay out that amount to allow those left behind to cover the cost of the funeral and other expenses
such as medical or legal costs.
Funeral expense insurance vs. burial insurance
One of the most common questions policyholders ask is the difference between funeral and burial insurance. These two policies are incredibly similar and effectively offer the same service of paying out a lump sum upon the death of the named holder.
Burial insurance will pay out a set sum, typically up to $25,000, with policyholders paying a set premium over a pre-determined timeframe. Funeral expense insurance, on the other hand, will usually break the payout down into pre-determined expenses, such as funeral home costs, burial costs, and other expenses. It can be paid in one lump sum or through set installments.
How to find funeral expense insurance
When it comes to finding funeral expense insurance, with so many options and insurers offering coverage, it can be tough to know where to start. There are typically three key factors to consider:
Shop around
The first thing that you should do is to shop around. There are many different insurance agencies offering varying levels of coverage, so searching around to see what is available will ensure you get the best policy possible. When shopping around, make sure that you consider key factors such as the rates and payments, as well as the premiums you will receive and any requirements you might need to complete before being accepted.
When should you consider funeral expense insurance?
Another very important consideration when it comes to finding the best funeral expense insurance for your needs is the age at which you take the policy out. Like with all life insurance, the earlier that you undertake the policy, the lower your premiums will be.
Not only that but the older the policyholder is, the more likely they will be required to undergo a stringent medical examination.
When the time comes, how do you use your insurance plan?
The final consideration will be how your loved ones will be able to collect and pay for the funeral expenses. Every insurer will have a detailed process on how and when they will pay out, so it is important to read through the policy documents to understand when this will be.
It can sometimes take several weeks for payments to come through, particularly if there are questions or complications with the policy. Speaking with your provider and the funeral home will be able to help you with any questions you might have and ensure that you are able to cover all of the required costs.
Consider funeral expense insurance today
Are you looking for funeral expense insurance? The earlier that you secure your policy, the less stress and worry that your loved ones will face upon your death. Here at Stark Funeral Professionals, we know how challenging it can be, which is why our dedicated team is here to help you with any questions you might have about your funeral. Want to find out more? Get in touch with our team today.
