A Look at Funeral Insurance

Funeral insurance is also commonly known as pre-need insurance. This type of coverage helps pay for final funeral expenses, which can include but are not limited to, the funeral service, casket, burial plot and flowers. Many people purchase funeral insurance because they do not want their family to suffer the burden of paying for this out of their own pocket. Since the average cost of a funeral exceeds $7,000, and in many cases in excess of $10,000, funeral insurance is becoming more of a necessity than it was in the past.

Types of Coverage

There is more than one type of funeral insurance to consider. As a buyer of a policy you must consider all your options to ensure that you purchase the right one. Generally speaking, the phrase “funeral insurance” covers any type of policy that is meant to pay for final expenses. The amount of insurance that you purchase is based on the type of funeral that you are interested in, as well as how much you can afford.

Paying for Funeral Insurance

In addition to other insurance policies, you have to decide how you are going to pay for funeral insurance. One of the best options is paying a lump sum. You make one payment and, in turn, receive the coverage that you are interested in without an ongoing expense. While this may be the simplest option, it is not the right choice for everybody. Many people opt for continuing monthly payments because they do not have the money upfront.

Before you Buy

Before you purchase a funeral insurance there are several details that you should first think about. Begin by asking yourself the question: Do you have a life insurance policy that offers a death benefit that is big enough to cover funeral expenses? If so, it may not make sense to purchase funeral insurance. As long as your life insurance is guaranteed to pay a death benefit to the person in charge of your funeral, this is something to consider. Compare at least three companies and policies. It is best to comparison shop so that you will get a better feel for what is being offered, as well as how much you are going to pay for coverage.

Consider Increasing Costs

A $7,500 funeral insurance policy in today’s day and age may be enough to cover every expense. But if you do not expect to pass anytime soon, this may not be sufficient in the future. If you are interested in learning more about the average cost of a funeral and how much coverage makes sense, speak with both a funeral insurance provider as well as a funeral home director. They will be able to give you more information about the coverage somebody in your age bracket should purchase. Funeral insurance is not something that most people want to think about. But with the cost of funerals on the rise, more consumers are giving it a second look.