Coping with the loss of a loved one can be difficult enough, but with the funeral comes the costs of the burial and other related products and services. There may also be debts that your loved one has left behind in this life that must be settled. Overall, having to take care of this financial burden can make the grieving process far more difficult and stressful than it should be. If you understand the above situation, you can imagine what things may be like for your loved ones should you pass.
The good news, however, is that there are ways to ensure that your family is covered in the event of such a tragedy. Are you interested in funeral insurance? If so, let’s take a look at exactly what it is and what coverage it provides for the families of those who will be handling these expenses.
What Is Funeral Insurance?
Funeral insurance is a type of insurance that is designed to protect your loved ones in the event of your passing. While there is generally a limit to the amount of coverage you can sign up for, your family will receive this support in the form of one payment that will help them navigate this difficult time without having to stress about where the money to pay for your funeral will be coming from. They can use this money to pay for all of the expenses associated with your funeral and use the additional funds to take care of unpaid debts or other costs that may come after you have taken care of these two areas (if this is something that your policy allows for). Put simply, funeral insurance gives your loved ones the funds they need to deal with any of the burial or cremation costs along with debts that need to be settled as soon as possible.
What Does Funeral Insurance Cover?
Depending upon your current financial situation, funeral insurance will allow you to cover yourself for costs as low as $5,000 or for costs as high as $15,000. Of course, it is important that you pay close attention to the terms set out in your funeral insurance policy. There are some policies that will allow your family to use all of the funds that you have accumulated over time while others will only pay out the amount needed to handle the funeral itself. If you are in good standing in terms of your debts, this type of policy might be the right fit for you. If you anticipate that your family will need to handle your finances after you are gone, however, you will want to look for a policy that will release all of the funds that you paid for throughout the course of your policy.
Another thing to consider is the premiums associated with your policy. While there are policies that may allow you to stop paying for your policy once you have met the amount that you have decided to set aside, others will ask you to pay long after you have reached the amount you have aimed to set aside. It is important that you explore every financial avenue before you set your sights on insurance for your funeral in the future. If you need further help understanding funeral insurance, learn more about types of life insurance with iSelect to ensure that you purchase the right product for your needs.
While we do not know when we will pass, we do know that it will happen one day and that our family will have to handle our funeral. If you want to make sure that they are properly covered during this time, consider looking more into funeral insurance and other financial products so that you can make the transition easier for your family during your passing.