Written by Chelsea Petersen

It’s common for people to worry about how their family will cope with funeral expenses when they die. It may seem morbid to start preparing for your own funeral, but purchasing funeral insurance for you and your family is definitely something that should be considered. A death in the family is already tough, without having to worry about funeral expenses, medical bills, or outstanding insurance payments. Having a good funeral policy can protect your family from financial burdens in your absence.

What is Funeral Insurance?

Funeral insurance is a type of insurance policy that will pay out a lump sum, upon the death of a family member, to cover the cost of funeral expenses. Depending on the policy, the pay-out may also be extended to cover the cost of medical expenses, transport costs, burial fees and unpaid credit card bills. This requires a small amount to be paid towards the policy every month.

What are the Advantages of Funeral Insurance?

Having funeral insurance for your family allows you to have a funeral ceremony for your family member without putting a strain on your finances. In the case of planning for your own death, it allows you to take on financial responsibility for your own funeral, rather than leaving it to your family.

 Most insurance companies require you, as well as a number of additional family members, to pay a set amount towards the funeral policy each month. The amount paid towards this policy is flexible, as it depends on your own financial situation. This means that you won’t be put under financial strain if you do take out the policy.

Aside from financial security, your family will also have assistance when dealing with funeral affairs. Having these affairs pre-planned, and an expert to handle the expenses is helpful during such an emotional time, removing a lot of stress from your grieving family. Having all the arrangements planned in advance can also allow for a more dignified send off, as opposed to a ceremony thrown together in a few days.

Many people take out insurance policies to ensure their funeral wishes and preferences are carried out. Taking out insurance guarantees that you are able to control your own funeral. Preparing, in advance, also removes the stress of making and carrying out decisions, about burial and funeral arrangements, from your family.

It is, somewhat, comforting to know that you are able to lessen the burden placed on your family in your absence, or that of another family member.

If the entire sum, paid out, is more than necessary to cover the costs of all funeral and burial arrangements, the money remains with your family, and can be used for any of their needs.

Depending on your financial and lifestyle situation, funeral insurance can work out to be more cost- effective than taking out a life insurance policy.

When Should I Take out a Funeral Insurance Policy?

The sooner, the better.  It’s best to take out a funeral policy as soon as it is feasible. This applies, especially, if you have a big family and many dependants.  Accidents happen, and it’s best to be prepared, and cover your family as much as possible. Even basic funeral costs can be expensive, and putting a small amount towards the policy, each month, can help avoid financial problems in the event of a death.

How do I Choose the Right Policy?

When choosing a policy, you need to consider both you and your family’s needs, looking at the present, as well as future possibilities. Ultimately, your policy should suit your family’s lifestyle and be planned around it. It’s recommended that you compare at least three policies, with your insurance company, before choosing the one that best suits your needs. Also, consider your own budget when deciding on monthly payments. It may also be good preparation to consider the charges of your intended funeral provider.  The policy benefits may vary; understand how these benefits will fit in with your family’s lifestyle before making a decision.

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