Funeral Insurance – Do I Need It?


Funerals! They are something we all have heard of, even though no one wants to talk about them. We are here for a brief time. Everyone should prepare for the future. Funeral planning is something that everyone should do. A plan can help ease the burden on loved one’s shoulders. You can achieve this with a burial insurance plan. This is often referred to as a whole-life insurance policy that has a death benefit of between $5,000 and $25,000. Only a few questions about your health are required. There is no need to undergo a medical exam. A burial insurance plan can cover funeral expenses. Life insurance is a trusted and efficient way to finance your final expenses.

There are three options for paying funeral insurance. The first is a single-premium policy. Once you pay the lump-sum, you are immediately covered for the entire death benefit. Graded death benefits are available that provide coverage that increases with time. The third option is a Traditional whole-life policy. This policy pays the same amount as long as the premiums are paid. However, coverage will end if you stop paying. There is a 30-day “free-look” period for insurance policies. You have a 30-day period to review your policy and cancel it without penalty. Pre-need insurance is a similar approach to burial insurance. It is pre-payment for your funeral arrangements. You can choose the type of service you want, casket, outer burial container (if necessary), flowers, headstone, burial site, cost of opening and closing the grave, as well as the price of any additional items. Funeral costs are rising, as we all know. According to statistics, there is an increase in funeral costs of 3% each year. The Social Security Death Benefit, at $255.00, has remained the same since 1952. This barely covers floral arrangements. The average funeral cost today is between $6,000 and $10,000. Cremation is, of course, always the less expensive option. A lack of a plan can cause emotional stress for loved ones. They are more likely to spend too much. There is also uncertainty about how to fulfill one’s wishes. Many decisions must be made quickly, such as choosing the funeral home, which casket to buy, and whether or not to hold a viewing.

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The cost of a funeral can be affected by choosing the right funeral home. Prices are usually lower at smaller funeral homes. There are both privately owned funeral homes and those that are managed by corporations. Always inquire about the ownership. In some states, you must clearly see the ownership when entering an establishment. For example, a funeral at an independent funeral home could cost $5,000, while a service at a corporate funeral home might cost $10,000. You should ensure that all agreements are in writing. All licenses, insurance policies and funeral directors must be verified. In your presence, ensure that all documents have been completed. Ask your funeral director whether they will guarantee the price. Get in writing all the details of your pre-need plan, including any arrangements or products. In case you need to relocate, check to see if arrangements can be moved to other funeral homes and if there are any fees for bookkeeping. If you cancel, find out if there are any cancellation fees or refunds for products and/or services.

Insurance companies may offer additional services to policyholders that are included in their policies. This is a service that acts as an intermediary between the family members and the funeral home. They are there to ensure that everything goes smoothly for those who will be making the arrangements. They will notify the funeral home you choose, and remind them of your plans. You can be sure that your funeral insurance policy will cover all expenses.

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