Archive for the ‘funeral expense insurance policy’ Category

Funeral and Burial Expense Insurance

Friday, February 17th, 2012

Although we are uncomfortable thinking about death, especially our own death, planning our funeral expenses in advance is the kindest and most thoughtful action we can take for our loved ones. Most insurance carriers offer funeral and burial expense insurance as a type of basic life insurance.

Just as the name implies, the main purpose of burial insurance is to cover the funeral costs, final expenses, as well as pay off specific obligations or debts.  Other terms that are commonly used to describe burial insurance are funeral insurance, final expense insurance, pre-need insurance and end-of-life plan insurance.

Burial insurance is generally associated with a permanent type of insurance policy (versus term insurance), and the most common permanent policy used is called whole life insurance. Most whole life policies which are purchased to cover funeral expenses range from $5,000 to $25,000.

Although burial insurance is very similar to life insurance, the most common strategy is to own both types of insurance policies.  This way the funeral expenses can be separated from the life insurance proceeds, making your last wishes much more straightforward as to how you wanted the life insurance proceeds to help fund or replace.

The proceeds of a burial insurance policy are a fixed and guaranteed amount. Since these monies remain constant throughout the life of the policy, you always know exactly how much is going to be there in your loved ones time of need. So once you pay your premium, there’s no need to worry from then on, because both the premium price and the payoff amount are fixed for the life of the policy.

The cost of funerals and burials

The National Funeral Directors Association indicates the average cost of a funeral exceeds $6,700 not including medical and legal expenses. However, depending on the type of casket, headstone, and cemetery plot purchased, these expenses can be considerably higher.

According to the American Association of Retired Persons (AARP), funerals and burials are among the most expensive purchases that older Americans make. AARP estimates that the average cost for an adult funeral ranges from $5,000 to $10,000. About one-third of that goes to the cost of the casket, alone.

In addition, an in-ground burial can add another $2,400 to the total cost of final expenses.

Professional services that need to be paid for include:

  • Cemetery plot
  • Casket
  • Headstone
  • Funeral service
  • Visitation/Viewing
  • Minister
  • Hearse

Additional costs are often associated with the death of an individual:

  • Legal fees
  • Doctor bills
  • Pay off debts like mortgage, car, credit cards
  • Legal costs at death (probate, taxes, etc.)

Sources used:

http://www.nj.gov/oag/ca/brief/preneed.pdf

http://insurance.oregon.gov/publications/consumer/3932.pdf

http://pccfa.com/commonquestionsFH.php

 

 

Funeral expense insurance- Make provision for funeral expense insurance while the going is good

Saturday, April 17th, 2010

Some people are raided with fear when they even begin to think about their funeral or that of a loved one. A funeral is never a hot topic of discussion; it is a far-fetched thought in the minds of people. Some people have a very laid-back attitude when it comes to the reality of a funeral, no one will live on and some day death will come knocking. On the other hand you come across people who are so obsessed with burial and funeral procedures that it is the foremost thought on their minds. It is good if this thought can be acted upon, making provision for funeral expenses while the going is good is the way to go. No one knows when death will strike, many people get struck by it and they’re not even prepared. This is a sorry state of affairs; the loved ones that are left behind are put through a lot of inconvenience, if you are rational thinker go ahead and think well along the lines of funeral expense. Death is certain and no one will escape it, it is imperative to make provision for funeral expense while it is still light.

Gone are the days when funeral expense was insignificant, with the hike in prices funeral expense might turn out to be a bomb as well. There are a few funeral expense insurance policies that one can invest in; these are designed in such a way so as to suit the pocket of an individual. A certain amount is agreed upon and the nature of services as well, at the appointed time their services will be rendered according to what the amount agreed upon was. Doesn’t just the thought of this give you peace of mind? I have come across many people who prepare well in advance for their funeral; they keep aside money for funeral procedures and the coffin as well. It is not a bad idea to plan out your funeral or that of a loved one and work towards it. In reality it is the final bill that one will pay on the earth, some of these funeral expense insurance policies also help you choose which accessories you would like to be used at the funeral, the rates on these are not changed as well.

You may have heard it being said “I came with nothing and I will go with nothing” this statement is true but there are many expenses involved when it comes to a funeral ceremony. Some folks need to get rid of a pauper mentality, take some of that hard earned money of yours and invest it in a good funeral expense insurance policy. Life is not as long as it seems, many times more people find it difficult to shell out for a funeral expense insurance policy nevertheless it would be wise to them to keep some money aside so that when the time comes they do not run helter-skelter.

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