When the word insurance is mentioned, the first thing that comes to the mind of most people is common insurance policies, such as life insurance, health insurance or car insurance. All these insurance policies are important, but one type of insurance is often overlooked: funeral insurance. It is equally important and beneficial. Funeral insurance, also known as preneed insurance or burial insurance, allows you to cover your burial costs so that your family members do not end up struggling with the costs later on. How is burial insurance beneficial? Well, here are the major advantages of burial insurance.
Burial insurance is not a protection against a potential risk but an advance payment to a future service. This is a perfect way to bring your finances to a close when your time on earth ends. This will ensure that your funeral does not affect the financial stability of your dependents. Surely, you do not want to trouble your loved ones with the costs associated with a funeral while mourning for your demise. This is the best gift you can leave them when your time comes.
It is also important to consider the high cost of funeral services today. On average, the cost of organizing a funeral for an adult is more than $4,500. Nearly one-third of that amount is spent on buying the casket only. This amount is so huge that it can literally empty the pockets of your dependents if they are left to meet the funeral costs.
Ability to customize your funeral
Preneed insurance enables you to customize your funeral arrangements before your time comes by paying for burial services. A burial insurance policy covers the cost of various products such as funeral caskets, hearses, burial plots, urns, vaults, flowers, grave digging and filling and grave markers. Funeral insurance also allows you to make known your wishes or preferences on how you want your funeral to be carried out, perhaps your favorite theme or church. Since there will be enough resources to fulfill your wishes, your family will certainly honor them.
No legal complexities
The common practice of organizing funerals was through a trust. A given amount was reserved to cover the burial costs. The concept of burial insurance became very popular due to the legal complexities that came with the trust setup.
Peace of mind
The death of a loved one is usually associated with a lot of emotions that may get out of hand. This necessitates the need for people going through such a loss to get assistance in arranging the funeral. This will save the family members a great deal of effort and time in arranging the burial.
To enjoy these benefits, ensure you buy burial insurance from a reliable company. A number of firms have entered the funeral insurance market. With preneed insurance, many people, particularly senior citizens, can now plan for their death in advance to shield their relatives from burden. According to many experts, buying this kind of insurance should be an important part of one’s financial planning process.