Insurance plan

Things to Consider When Buying Funeral Insurance

If you’ve started considering covering your funeral services, then you’re way ahead of a lot in your early retirement plans. While most people start planning for their retirement as soon as they enter working life, people rarely think about the cost of covering their funeral on their last trip. So, if you’re considering getting funeral insurance, here are some things to consider:

1. Calculation of final expenses

The first thing to do is to estimate the final cost of your funeral services. This is probably the last event in your life with the highest expense. You might think that funeral service expenses are just for the burial, but they also incorporate the expenses of all your pending transactions, including medical bills, credit card bills, and more. You need to calculate the overall cost taking into account all the different aspects of the financial dealings that will be required before and after your funeral.

  1. Selecting your package

Like any other insurance plan, funeral insurance also involves a premium amount that you have to pay at regular intervals. Generally, it incurs monthly transactions. There are different forms of funeral insurance premiums, which include:

  1. Tiered bonuses: In tiered premiums, the cost of your coverage is calculated each year based on your age, gender and coverage size. At the start of the contract, you pay less, but the cost increases with each contract anniversary.
  2. Level premiums: Level premium insurance, also called term life insurance, is a fixed payment amount over the life of the policy.
  3. Capped premiums: In capped premium, you set the amount or an age limit and once you have reached the amount or age, you no longer have to pay and your coverage will continue.
  4. Paying the guarantee premiums: The beneficiary you have mentioned will receive the greater of the two amounts: the amount of the premiums or the actual insured payment.

You can choose the best plan from the above mentioned plan based on your convenience and monetary capacity.

  1. Pre-need insurance

You can always choose pre-need insurance for your funeral service. Pre-need insurance is usually affixed with a prepaid funeral agreement with any cremation center. The agreement predetermines funeral services and procedures as well as all requirements and products. She pays the full cost of services at the cremation center. By availing the pre-need insurance, you can purchase the insurance by paying in installments or with a single payment. Once the payments are made, the insurance remains for the rest of your life.

4. How to choose the best services for yourself?

It’s totally personal discretion which plans suit you the most. However, there are a few things you should keep in mind before purchasing a plan for yourself:

  1. Does the plan have something to support your family?
  2. Are you prepared to undergo a medical examination in accordance with certain policy requirements?
  3. Which plan best suits your monetary needs?

More or less all insurances are the same, however, a few minor details make the policy distinct. So you need to look at the minor details and assess whether or not they suit your interest.

End of article

Feature Image Attribution:

Photo by Vlad Deep on Unsplash