When it comes to financial planning, there are many aspects to consider. Saving for retirement, investing in the stock market, and purchasing life insurance are just a few examples. However, there is one aspect that is often overlooked: funeral insurance. Many people do not realize the importance of having funeral insurance until it is too late.
This blog post will discuss why funeral insurance is an essential part of financial planning and how it can benefit you and your loved ones.
What is Funeral Insurance?
Funeral insurance, also known as burial insurance, is a type of insurance policy that pays out a lump sum of money to cover the costs of a funeral and related expenses. This type of insurance is designed to alleviate a family’s financial burden associated with funerals and other final rites. The policyholder pays a monthly or annual premium to the insurer, and in return, the insurance company pays out a predetermined amount of money to cover the funeral costs and expenses. It can also cover other expenses such as monthly payments, loans, and other family-related expenses.
Why is Funeral Insurance Important?
Funeral expenses can add up quickly and can be a significant financial burden on your loved ones. The average cost of a funeral in the United States is around $7,500 to $10,000, and that does not include additional expenses such as floral decorations, obituary notices, and cemetery fees. Without funeral insurance, your family or loved ones would be responsible for paying these expenses out of their monthly budget, which can be difficult for many families.
Having funeral insurance can also provide peace of mind knowing that your family will not have to worry about the financial burden of your final rites. This can be especially important for those who have limited financial resources or are on a fixed income. Funeral insurance can help ensure that your funeral expenses are covered, so your loved ones can focus on grieving and healing without the added stress of financial worries.
Benefits of Funeral Insurance
In addition to providing financial protection for your loved ones, funeral insurance offers several benefits:
Easy to Qualify For
Funeral insurance is more accessible to qualify for than other types of insurance. Most funeral insurance policies do not require a medical exam, and acceptance is based on your age and health history. This makes it a good option for those who may not qualify for traditional policies like life insurance.
Customizable Premium and Coverage
Funeral insurance policies can be tailored to meet your specific needs. You can choose the amount of coverage you want, which can range from a few thousand dollars to tens of thousands of dollars, depending on your budget and preferences. You can also choose the type of funeral you want, such as burial or cremation, and any additional services you want to include. This makes funeral insurance an ideal option for people who want to protect their families from financial stress of funeral-related costs.
Guaranteed Payout
Unlike some other types of insurance policies, funeral insurance offers a guaranteed payout to your beneficiaries. This means that as long as you continue to pay your premiums, your loved ones will receive the total amount of coverage you have chosen, regardless of how much you have paid into the policy.
No Restrictions on Use of Funds
The funds received from a funeral insurance policy can be used for any purpose related to the funeral, such as paying for the casket, funeral home fees, and cemetery expenses. This gives your loved ones the flexibility to use the funds as they see fit, without any restrictions or limitations. Not only this, but the family can also use funds for other payments like credit card bill, personal loan and so on.
Conclusion
Funeral insurance is an essential part of financial planning that is often overlooked. It can provide financial protection for your loved ones and offer peace of mind knowing that your funeral expenses will be covered. Funeral insurance is easy to qualify for, customizable, offers a guaranteed payout, and has no restrictions on the use of funds. By including funeral insurance in your financial planning, you can ensure that your family will not have to bear the financial burden of your final rites.
