Funeral Insurance Covers Costs of Burial Expenses

It seems like planning ahead for the unexpected is a part of life. However, there are a few things in life that you know are inevitable, and death is one of inescapable realities of life. It is possible to save your loved ones a lot of hardship by planning ahead with a funeral insurance policy. Funeral directors explain burial and funeral ceremony costs with loved ones, but this process is made easier when the deceased has taken the initiative to obtain funeral insurance while they were still living.

What is a Funeral Insurance Policy?

You have most likely heard of life insurance, but funeral insurance is not nearly as common. Even though this is not a policy that all individuals obtain, it is a type of insurance that offers peace of mind and is incredibly useful. The policy provides funds that can be used to cover the cost of all funeral-related expenses. There are even select funeral insurance policies that allow the funds to be used on all final expenses including credit card bills, medical bills and legal expenses. It is important that you understand the terms of your policy when you choose a funeral insurance plan.

When to Buy a Policy

The premiums are lower based on age and only increase with time. As you get closer to death, the cost of your funeral insurance rises. This is to be expected, but there are also termination ages. Most funeral insurance policies terminate after the policy holder reaches the specified age of 80. The actual age restrictions differ from policy to policy, but all have some type of termination age. The key to remember is that policies that terminate during your lifetime do not give you access to the funds you have paid in.

Rising Funeral Costs

The main reason that funeral insurance can be beneficial is tied to the rising costs of funerals. The cost of funerals is trending upward with no signs of falling off. This means funerals are a large expense and not having funeral insurance can cost your loved ones. Funeral costs can be a big financial burden, but this type of insurance policy is designed to provide relief. The premiums for most policies are very affordable and policies can be purchased in total amounts above average funeral costs. The speed of payment with these claims is also ideal. Funds can be expected within two days of the policy holder being declared dead.

Get in touch with a funeral director at a funeral home like Tony Hollands Funerals to learn more about steps you and your loved ones can take to prepare for funerals before a death occurs.