A loved one passing on can be one of the most difficult times that a person may face. In addition to mourning the death some may also have to deal with financial hardships as a result. The deceased may not have had any type of insurance or may have even been under-insured. When this occurs the family is left to burden the steep costs for the funeral. However this scenario can be avoided by making a small investment in funeral insurance, or often called burial insurance.
What is Funeral Insurance?
Funeral insurance is simply that an insurance policy that is designated to cover one’s final expenses. These types of policies are quite similar to life insurance policies with the exception to what is covered. Unlike a policy that is paid directly to the beneficiary the benefit is paid directly to the funeral home to pay for services. This kind of insurance is not the same as prepayment for funeral services though.
What Does It Cover?
Funeral policies may cover various types of services. This may include but is not limited to the casket headstone or grave marker cremation and even flower arrangements. In some cases the burial plot and hearse will also be covered as well. However this will depend on the individual policy and the underwriting company.
How Much Does It Cost?
The costs of burial insurance can vary significantly from one company to the next. One of the key factors in determining the costs is the amount of insurance purchased. Another important consideration is the age of the individual when the policy is taken out. Typically the younger the individual is when the policy is purchased the cheaper the premiums. The costs are often more affordable than that of life and other types of insurances.
Is This the Same As End-Of-Life Insurance?
Funeral insurance is sometimes referred to as burial insurance or end-of-life insurance. These terms are also used interchangeably for life insurance but should not be confused. Therefore the consumer should always take the time to carefully read all policy documents to ensure that they understand what type of policy is actually being purchased.