Losing a loved one is painful enough. A loss puts people through intense emotional stress.
Unfortunately, most people stress about finances after a loved one’s death. Some funerals cost over $10,000.
Half of Americans would struggle to afford a $400 emergency expense. You’ll need to pay much more to provide your loved one with an honorable burial.
A funeral insurance policy provides you with a layer of financial security. You won’t have to worry about raising enough funds for funeral costs. The insurance policy will kick in and provide you with the proceeds.
Below, we’ll discuss some funeral insurance tips. By the end of this guide, you’ll know if buying funeral insurance is the right choice for you.
Funeral Insurance Explained
Funeral insurance is a policy that you pay each month in exchange for a death benefit. You receive the death benefit upon the insured loved one’s death.
Most funeral insurance policies come with low death benefits. These policies often range from $5,000 to $25,000. You can save money on premiums by opting for a lower death benefit.
What Does Funeral Insurance Cover?
Funeral insurance will cover the costs of conducting the funeral. The memorial service, casket, and burial get covered. You can also get coverage for an urn and cremation if you do not opt for burial.
You will receive coverage based on your death benefit. Knowing the death benefit in advance helps you plan out the funeral to cut costs.
If the policy contains a $10,000 death benefit, you know you can spend up to $10,000 on funeral expenses.
You can receive some of the proceeds by keeping costs low. If you only spend $9,000 of the $10,000 death benefit, you get to keep the extra $1,000.
Obtain Funeral Insurance Early for Lower Premiums
Younger adults often overlook funeral insurance. They will live for many decades before someone needs to cover their funeral costs.
Younger adults can secure lower premiums by selecting a policy. These premium payments stay the same, offering inflation protection.
If you wait, you will incur higher premiums for a future policy.
For the elderly, higher premiums beat not having a policy. You won’t make as many premium payments for a senior. However, you will get the necessary coverage for their funeral expenses.
It’s easier to budget for premiums each month than for a sudden $10,000 emergency expense. Some funerals cost more than $10,000, and inflation suggests services will cost more in the future.
Funeral Insurance Ensures You’re Prepared
We must all part ways with our loved ones. The departure is bitter, but we can remember many fond memories.
Departure only stings because we loved so dearly. It is better to love and lose than to never love at all.
Funeral costs can add salt to the wound. You should have the space to gather yourself and mourn for your loved one.
A funeral insurance policy removes the financial worry from the planning process. You can apply for a policy today to plan your budgeting.