Considering Funeral Insurance, there are a few points to be aware of before you get the cheapest quote.
Funeral Insurance pays out on the event of your death, the idea is that funerals are expensive and that you donít want to leave the burden of funeral expenses to those you have left behind and want to set down before you die exactly how you would like your funeral conducted.
There Are Several Different Types Of Funeral Insurance Policy Such As Term Life
There are several different types of funeral insurance policy such as term life, this policy means you take out insurance for a specified number of years (the term) and if you die within that term then the funeral policy pays out and your funeral bills will be paid for and your wishes for how you want to conduct your funeral will be followed.
Of course, if you donít die within that term for example if you took out a term life policy for ten years and you donít die within ten years then the policy would not have to pay out as there is simply no funeral to pay for, thatís good of course and god willing we all want to live as long as possible.
If your term life policy came to an end before your death then you would have to take get a new funeral insurance policy for an additional period of time say another ten years for example, of course there is nothing to prevent you from taking out a higher term life policy for example for twenty years as opposed to ten years.
Decreasing Life Insurance Policy
A decreasing life insurance policy is another term your will hear applied to funeral costs but this is not as good as a term life policy, let me explain, with a decreasing life policy the amount of cover, the amount thatís paid out on the event of your death falls each year, so if you die in the first year of the policy the funeral pay-out will be higher than if you die in the second year of the policy, and the tenth year of the policy will pay out much less again than the first year.
This saves the insurance company money as the closer it gets to your death (youíre more likely to die after a greater number of years have passed than a fewer number of years), meaning that when the pay-out happens the money has decreased over the years and the amount your loved ones have left for your funeral costs is greatly reduced.
Term life funeral insurance is better in that it pays out a set amount of money if you die within the term of the insurance. There are also set funeral cost plans that pay out a specific amount of money guaranteed on your death, this is a good way to ensure that the money will be there to pay for your funeral, of course funeral costs do rise and you might need to change your cover after a few years to make sure the pay-out is still able to cover your funeral costs.
Funerals Are Expensive
Funerals are expensive, there are the burial costs or cremation costs there is the cost of a religious or non-religious ceremony, there is the cost of flowers and the cost of a headstone and of course the cost of a funeral plot as well as the cost of hire cars to get your friends and relatives and chauffeur them to your funeral and back.
There is also the cost of order of service cards and the cost of catering and the cost of somewhere to hold the wake or get together after the funeral plus you might also want to pay for outfits for your loved ones so they donít have to buy suits and dresses to wear at your funeral.
These costs may or may not worry you, and of course what you want from your funeral is entirely up to you, if you want your funeral arrangements taken care of and paid for especially if there is no one that you will leave behind after your death to pay for the funeral arrangements, then funeral insurance is a good choice, you can specify your exact arrangements, who you want invited to your funeral, what hymns you want sung at your funeral, what bible readings you want read, what flowers you want at the ceremony and what food you want the caterers to bring.
Funeral Cover For Over Fifties
Funeral cover for over fifties is available at special rates, because older people think about their funeral more than younger people and so special insurance products have been created for the over fifties market, of course you can buy funeral cover at any age, but it will be cheaper when youíre in your fifties.
Critical Illness Cover Is Another Form Of Funeral Insurance
Critical illness cover is another form of funeral insurance, here a lump sum of money is paid out if you are diagnosed with a critical illness or medical condition within the term of the insurance policy, the money is paid out on diagnosis rather than death, you can then use this money to plan your own funeral or give the money to a friend or family to arrange the funeral for you, if you wish to do this itís much better to put your wishes in a will rather than rely on someone remembering what you wanted.
With the best funeral insurance you can plan your send off, you specify the flowers you want, the type of casket (coffin) that you want or the cremation that you want, the catering that you want and the friends and relatives that you want to attend your funeral, so everything is planned in advance and you can relax knowing that your exact wishes will be followed and there will be the money available to carry out your wishes.
The cost of dying is an expensive business with funeral plots, coffins, gravestones, flowers, religious ceremonies, catering, chauffeur hire, suit hire, hall hire and more, if you know your loved ones donít have the money to pay for your funeral or you just donít want to leave them with the expense then consider a funeral insurance policy.
You get peace of mind not only in knowing that the funeral is paid for, but in knowing that your exact wishes will be followed, whilst younger readers with no experience of a funeral will wonder if funeral insurance is needed, older readers or those with a critical illness will appreciate that their last acts will be the way they want them and their minds will be free of the worry of their funeral.
The Other Type Of Funeral Insurance Is Whole Of Life Cover
The other type of funeral insurance is whole of life cover, this rather than term life insurance is a funeral policy you take out that lasts until you die, the period of the insurance does not end as long as you pay the yearly or monthly insurance fees.
Burial fees or cremation fees are expensive, no one planning a funeral shops around for the best deal and in times of grief the family of a loved one who has departed simply pay whatever is asked of the crematorium or funeral parlour, with funeral insurance you can take this worry away from your loved ones by paying for your funeral in advance with funeral insurance that pays out on your death.
Of course, the expense does not end at the graveside, there are costs of travelling (consider Travel Insurance) to the funeral for your family and friends and a funeral policy can include these costs and pay out for your family and friends to attend your funeral, renting chauffeur driven cars and chauffeurs and renting outfits to wear as well as paying for the food and drink at a wake in your honour.
There are also the costs of moving the body to the cemetery or the crematorium, maybe you wish to be buried next to your Mother or Father, husband or wife or maybe you die abroad whilst on holiday or living abroad and want your body to be repatriated and flown home for burial or cremation, funeral insurance can pay for this whilst leaving the costs to family or friends maybe beyond their means or they might have to take a loan or a mortgage out on their home to pay for repatriation fees, funeral insurance can help pay for this.
Funeral insurance can also pay for discretionary costs for example you might want to leave money at the bar for your friends and family to have a drink in your honour, with a funeral policy you can make this instruction for the money to be given for everyone to have a drink to remember you or money used for any other purpose that you see fit.
Funeral Insurance Will Cover The Cost Of A Traditional Or Non Traditional Funeral
Funeral insurance will cover the cost of a traditional or non-traditional funeral, some policies might state a traditional funeral which means either burial or cremation and other polices will allow a non-traditional funeral like spreading your ashes at sea for example, the cost of a boat and skipper and getting to the boat can all be paid for with money from funeral insurance.
Many worry about burial plots and headstones, these are expensive and if you want to be buried in a specific cemetery next to your loved one then itís going to cost more than the cheapest funeral available, funeral insurance can help pay these costs and put your mind at rest so you donít have to spend your final years worrying about your own funeral.
Prepaid funeral plans are also available where the cost of a standard funeral have already been calculated, there are several options available with different types of funeral and you just choose the funeral plans that appeal to you the most when you get the quote, then you pay the insurance each year or month and your exact funeral will be paid for on your death.
Many older people worry that they are a burden on their sons and daughters, a funeral plan is one way that you can make sure you are not a burden to anyone left behind.
Choose From Set Cremation Costs And Set Burial Costs
Choose from set cremation costs and set burial costs, simply decide how you would like to be buried when you complete the quote and your wishes will be carried out upon your death when the insurance pays out.
You can pay for your funeral through life insurance, a funeral plan or from money for your estate when you make a will, if you donít have much money to leave or are worried about your own funeral then funeral insurance ensures you plan everything before you go.
You Protect Your Funeral Costs With A Funeral Plan
You protect your funeral costs with a funeral plan because even if the cost of your funeral rises over the years you will still get the funeral that you specified when you competed your quote, the costs may rise but your funeral cost will remain the same for you.
With some funeral insurance, you can choose to have a lump sum of money paid out to a person you name like your son or daughter, brother or sister or a friend or you can have the funeral costs paid for directly, whether you want the funeral insurance to arrange your funeral or give the money to a friend or loved one to organise the funeral on your behalf is your own choice.
Do funeral plans save money?
Yes, you pay an insurance company so the costs of your funeral are not paid for by your family, with set funeral plans the funeral you specify in the quote is automatically paid for on your death.
Insurance policies to cover funeral costs can also cover mortgage protection, if you have a pension or employment which pays you money each month and you use that money to pay a mortgage then the mortgage payments will cease on your death, this could very likely cause your family to lose their home, with mortgage payment protection included in a funeral policy your mortgage payments will continue to be paid for you by your insurance company.