Many people don’t think much about their funeral, especially when they’re younger. Yet, if you think about the process and expense, you may wish to find a way to pay for it now so your loved ones don’t have the burden. One way to do this is through funeral insurance. With the cost of funerals increasing every year, this financial tool can give your family the all-important financial support they need should you pass away, making planning ahead for these costs an excellent idea.
How Does Funeral Insurance Work?
Policyholders take out funeral insurance to cover many of their expenses at the time of death. The amount selected depends on various factors, but generally, these policies cover the cost of a selected funeral director’s fee along with additional services planned. When considering your options, look at these plans carefully to ensure they provide coverage based on your desires, and don’t assume they’re all the same as many have built-in limitations. Buying from a trusted agency makes more sense for most than purchasing policies from a funeral director selling this insurance.
Many plans offer a tiered level system. The lowest coverage levels have the least expensive options, but they may provide only for certain costs, such as burial. Others cover the overall service and provide for many of your needs. You can and should customise this type of policy to meet your individual goals.
You generally purchase these plans with a lump-sum payment, or you can make monthly payments to cover the cost of the policy over a term of one to ten years, with various options available. For those making a one-off payment, costs range widely, but typically sit between £3,000 and £5,000.
Policies often include costs such as the limo service, church service, and preparation, but some don’t include burial plots or even funeral director services. For this reason, you should endeavor to choose a custom plan that meets your individual needs.
Do You Need Funeral Insurance?
Funeral insurance may not be something you’ve thought about, but take a moment to consider what could occur at the time of your death. Could your loved ones, such as your spouse or children, pay out of pocket for the costs of your memorial services and burial? Would this create financial hardship or limitations for them? If so, consider the value of investing in funeral insurance. Many affordable plan options you can customise to meet just about any specific need and price point make these policies a valuable investment in your family’s future.
Take a few moments to speak to your loved ones about your funeral expenses and needs, and then create a plan to pay for them. Alternatively, consider investing in funeral insurance. These policies offer an affordable way to meet your goals for end of life needs now, without putting pressure on your loved ones throughout the process.