Funeral policies | Funeral Insurance
The public image of funeral policies has been tarnished in recent years by the blanket coverage of companies offering funeral insurance plans. The common refrain of “for the cost of a cup of coffee per day you can give your family the peace of mind they deserve” is heard again and again and has become a bit of a running joke.
This may seem insensitive, especially when you hear it 50 times a day, but consider for a moment the actual point of the insurance and whether or not having it is important.
The fact of the matter is that funeral policies are a very smart financial move, but not for everybody. Contrary to what funeral insurance providers would have you believe, funeral plans aren’t for everyone, rather they are for people who are unlikely to be able to afford the full cost of a funeral (paid out of their estate or by family & friends) at the time of their passing away. It is true that this is most people, but it is not everyone.
So ask yourself this question:
Will there be sufficient money to pay for my funeral when I pass away?
If the answer is ‘yes’, there isn’t much point in taking out funeral insurance. You would be better putting your money into a high interest bearing savings account or investing it in other ways, such as the stock market or starting a small business.
If the answer is ‘no’ (and this is most of us – the author included!) a funeral policy may indeed be for you.
Questions to ask before deciding on a funeral policy
- What kind of funeral do you want? Lavish? Simple? Religious?
- Do you want to be buried or cremated? This affects the cost of your funeral more than any other single aspect.
- Do you want to provide catering at the funeral for the attendees?
- Who do you want to officiate the ceremony?
- Do you want to control the way the funeral is handled by having a restricted policy that pays for certain aspects up to certain predetermined dollar values, or do you want to have it paid out in a lump sum for your next of kin to decide how it is spent?
This last point is particularly important, as many people like the idea of knowing that those they leave behind do not have to stress about the specifics of the funeral. The funeral insurance policy will outline exactly what is to be spent on each aspect of the funeral, so grieving relatives don’t have to make tough choices.
After all, it is easy when you’re grieving to make expensive choices to honor a lost loved one. Funeral insurance policies avoid this possibility and can be a great gift to those you love.
We recommend you also read this page for some more motivation to speak to your loved ones about sorting out their insurance or for you to make a move.
We will add more helpful information about funeral insurance policies to this website in the near future 