While most people choose not to dwell on it, there are approximately 3.4 million deaths in the US each year. Most of the deaths are the results of either natural causes or accidents of some kind. Unfortunately, since death makes so many people uncomfortable, they don’t give much consideration to funeral expenses.

With the average funeral running just shy of $8000, that’s not an expense you want to neglect. Given that your family will face the stresses of grief and loss, financial stress isn’t an extra burden you want to leave them with.

This is where funeral insurance comes into the picture. Never heard of funeral insurance? Keep reading for a quick overview of what it is, and what it does for you.

What Is Funeral Insurance?

Funeral insurance or final expense insurance is a policy that quite literally pays for the costs of a funeral. In most cases, the policy provides a lump sum to the beneficiary listed in the policy. This is typically the family member that you expect to handle the arrangements.

Most people buy their own funeral insurance policies, but you can take out a burial insurance policy for a family member. For example, let’s say that you have a family member with dementia.

It would likely prove difficult to have a conversation with them about funeral insurance. Taking the policy out for them lets you deal with the practical realities without upsetting them.

What Does the Insurance Cover?

In the case of lump sum policies, the insurance can theoretically cover anything. In most cases, family members will use the payment to help cover standard burial costs, such as:

• The casket
• Embalming
• Service fees
• Viewing costs
• Transportation
• Cosmetic Services

Depending on the size of the policy, the money may also help to cover costs for transporting family members to the service or burial.

Funeral Insurance vs Life Insurance

It’s important to note that funeral insurance is a separate policy from life insurance. Granted, many families will use payment from a life insurance policy to help cover funeral costs.

With that said, a life insurance policy is typically there to help families manage the financial blow that follows the death of a loved one. For example, many people pick a life insurance policy so that it will replace a year’s salary for the person it covered.

Burial insurance is there specifically to help your family pay for the cost of the funeral.

Funeral Insurance and You

Making plans around your own death strikes many people as morbid, but it’s also a way to spare family members’ stress. When you take out the policy, it helps to ensure that your family won’t end up under a financial strain just to pay for basic funeral services.

It’s also a good way to ensure that your life insurance policy will help your family bridge the financial gap after your death instead of paying for a funeral.

USA Life Insurance Services specializes in funeral insurance. For a consultation, contact USA Life today.