Posts Tagged ‘funeral expense insurance’

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

 

 

The Importance of Funeral Expense Insurance

Tuesday, June 15th, 2010

Although it is something that not many of us want to think about, the fact that we are all going to die is something that is inevitable. The choice that you have to make now, is, whether or not you’re going to prepay for the funeral expenses that will be incurred upon your death. If you have a family that you are looking after, it would be a kindness on your part to make sure that you have some type of insurance in place to take care of this. This is important for a number of different reasons.

Perhaps one of the most important reasons why funeral expense insurance is an important thing to factor in your life is that you would not want to leave the financial burden to those that you are leaving behind. This is especially important if you are the breadwinner of the family, as you can really put them in dire straits if you do not have this insurance available. The price of the funeral was one thing and adding on the price of burial can make it quite a substantial expense. If you have the insurance necessary to take care of it, it will be appreciated by anybody that is left behind.

Another reason why you would want to have funeral expense insurance available is because of the stress that planning the funeral can put on someone. It is not that there is not going to be any decisions that need to be made by your family members, but at least they will not have to worry about where they are going to come up with the money for the funeral. During the time in their life whenever they are dealing with something that nobody is really equipped to deal with, you can help to ease their stress by having funeral insurance available.

Now that we have discussed the reasons why funeral expense insurance is important, it is just a matter of deciding what type of insurance we are going to get. The main type of burial insurance is a life insurance policy that will pay enough in order to take care of funeral expenses and your burial. Another option that you have available to you is prepaying the funeral expenses, either through an insurance policy or perhaps directly with the funeral home. Either of these can really take care of the job, but you would want to sit with your insurance agent and discuss the possibilities before you sign on the dotted line.

Taking Care of Your Family with Burial Insurance

Monday, June 7th, 2010

None of us like to consider the day of our death, but it is something that we should keep in mind, even if just for the benefit of our family. The unfortunate fact of the matter is, all of us are eventually going to die and we need to make sure that we do not leave our family in a situation that would prove to be additionally stressful on top of the fact that they are already dealing with the loss of a loved one. One of the best ways for you to do this is to make sure that you are covered through funeral expense insurance.

Funeral expense insurance, often referred to as burial insurance is really just a type of life insurance policy that is smaller in nature than many of the other life insurance policies that are available. Generally speaking, it is available to help to pay for any funeral expenses that may be incurred, along with the cost of burying us. Believe it or not, this can run into many thousands of dollars and it can put a real financial burden on our loved ones, if we happen to die without any burial insurance in place.

Of course, burial insurance, as with many other types of insurance policies does not come in a one size fits all package. As a matter of fact, there are a number of different options that are available to you and it would make sense to speak to your insurance agent in advance in order to discuss all of the options that are available. Since most of them work as a prepayment for our funeral expenses, we would want to choose the one that makes the most sense, along with making sure that we are able to afford the premiums that we will be paying.

I would like to caution you against putting too much weight in any burial insurance that may be available through your employer. Although they may pay for part of the funeral expenses, our family may still be left in the lurch to a certain extent. If your employer does offer this, make sure that you speak to your insurance agent about supplementing the insurance policy in a way that will be most beneficial to your family. If you happen to end up with additional insurance money coming, it could help to balance out any additional financial burden that may be placed on them during this difficult time.

Why should you carry funeral expense insurance?

Monday, April 26th, 2010

During the time of the cost inflation, the services and goods have become more expensive than ever and this trend is likely to continue for quite a few years. The expenses of funerals are no different and are bound to experience a sharp increase in recent years. Therefore, if you want to protect your family members from the high costs, you should consider some kind of insurance like the funeral expense insurance plans. This insurance covers the costs of the funeral therefore relieving all your loved ones of the heavy burden of the costs. This funeral expense insurance is a kind of a life insurance plan specifically designed to relieve this burden from the bereaved. The tenure for these plans is as long as you live as it is actually impossible to determine the exact time period till which you will remain hale and hearty.

The funeral costs can vary significantly depending on a number of factors. The state regulations or local ordinances can actually make funerals all the more expensive. The shortage of land for cemetery plots definitely increases the cost of the plot. You cannot realize how expensive the grave markers and caskets can be! You would only need a swift visit to any nearby funeral home so that you get a complete idea of what the total cost of a decent funeral is. You can also ask for the list of prices for different services offered by the funeral home. These costs can come handy when you are trying to decide the funeral expense insurance plans.

These insurance policies do not have an expiry date. On the lines of many different life insurance policies, the funeral expense insurance allows the cash value to be borrowed as and when necessary. The beneficiary can use this cash on any expenses. The premiums on these burial insurances tend to not increase and the benefits also do not decrease. These insurance policies hardly ever require any medical examinations and therefore it is not at all complicated to apply for them. However, this does not mean that you should not research properly about the different policies and companies before selecting any insurance plan.

Try and get yourself well acquainted with the federal and state laws concerning the burials and insurance before employing the funeral expense insurance plans. Check if some of the laws of your state are advantageous to you. You should also examine the contracts before deciding if the particular policy is appropriate for your family along with yourself. Ensure that you receive statements at least annually, providing you with the details of the policy you have employed. You should also check the cancellation terms properly before signing any kind of contract with the insurance company, funeral home or the cemetery. All these measures are just to ensure that you and your family are very comfortable with the funeral arrangements and also the policies of the company.

Funeral expense insurance – What is it?

Friday, April 23rd, 2010

Most of us certainly do not enjoy deciding the coffin we are supposed to be buried in, along with the ideal burial place and type of funeral which we would like for ourselves. But, death is an unavoidable reality and it is wise to pre-plan for the same, so that it is a lot easier for your loved ones after you pass. Do you know that according to the FTC (federal trade commission), a normal funeral along with the casket and also the vault costs can go up to $6000? This does not include the cost of the obituary placements, limousine services and the flowers which are an additional $10,000. You should also consider that in case of a sudden death the arrangements are unplanned and they are supposed to be addressed in almost 24 hours after someone’s death. Now do you understand the importance of getting a funeral expense insurance so that your loved ones are totally relieved of the extra work especially when they are drowned in grief.

Almost all of the funeral homes make it easier to pre-plan the funeral process, by making it possible for people to decide even the smallest of the details. You are provided a price list of the services and supplies which you will need for the funeral so that you get a complete idea of the cost of the process. Some of the funeral homes also offer price guarantees that mean you pay for the future funeral according to the present prices. However, the grave services and flower expenses are charged according to the current prices. There are actually three different and easy ways in which you can pay for the pre-arranged funerals apart from cash. They are pre-need insurance, pre-need trusts and final expense insurance.

The funeral expense insurance is also known funeral insurance which is actually a low level life insurance which can be purchased from any insurance company.

Like the life insurance policy, a beneficiary is named by the insured, but the money is used only for the funeral expenses. The funeral expense policy is either term life insurance or it can be permanent life insurance. The difference between these policies is the term insurance offers coverage only for a specific time and the permanent insurance offers coverage for whole life. These policies are further classified into guaranteed issue and simplified issue and any of these policies do not require any medical examination. However, applicants are enquired of any health related issues and people suffering from any serious health problems receive policy which includes a graded death benefit. This means that, the cost and the number of the premiums slowly increase and also the full expense of the policy is liable only after a definite period of time.

You should definitely go for funeral expense insurance so that you can decide the way you want to take leave of the world. This is bound to give you an immense sense of satisfaction and also relieve your loved ones of any extra stress.

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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