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Will My Life Insurance Cover Funeral Costs?

Will My Life Insurance Cover Funeral Costs?

Aug 03, 2022

Life insurance

The surviving members are left with many obligations when a loved one dies. It even includes funeral and ritual costs. Isn't that the main reason people buy life insurance? If that is how you are thinking, you are not mistaken.

With a life insurance policy, one doesn't get the money back on time, and in certain situations, it might not cover the entire cost, leaving loved ones to pay for funeral expenses out of their pockets. We've outlined below why a prepaid funeral policy can be a better option so that they aren't left to make difficult choices after your demise.

What Is a Life Insurance?

It is a contract between an insured and an insurance company in which the policyholder makes pre-decided installments per their policy. The payout is known as the death benefit and is designed to support their family financially. When one buys a life insurance policy, they may think it will also cover the funeral expenses, but the truth is, there can be many unexpected complications.

For example, the family must pay for the funeral home upfront, and the final claim may take weeks or even months to clear. The particular family may delay filing a claim, and sometimes getting the proper documents together can stretch the payment date out.

 What Is a Prepaid Funeral Policy?

A prepaid funeral policy is a contract the insured sets up through a funeral home wherein a policy pays for all the funeral-related expenses. Planning the funeral isn 't easy to do, both financially and mentally, but final pre-planning arrangements ahead of time give one of the following benefits:

  1. In the contract, one will see guaranteed items, which means the cost of these items is guaranteed to be fully covered by them.
  2. The selected services will be locked in today 's rates, allowing one and their family to save on rising funeral costs.
  3. Most of the plans come with flexible payment options. That is, instead of paying one large lump sum upfront, one can choose to pay in a staggered manner that fits their budget.

Planning the funeral through a policy ensures one 's family does not have to make critical decisions at the worst time in their life. Secondly, when the funeral cost is taken care of, it won 't put a financial strain on them during difficult times.

Why Else Should I Consider a Prepaid Funeral Policy?

Beyond the practical reasons for preplanning the funeral, such as saving on inflation costs, it provides a degree of peace of mind to both the insured and their family. One works with an advisor with a prepaid funeral policy and drafts a personalized final arrangement together.

This gives one time to think about how they want others to remember them by allowing the individual to put their preferences in writing.

Get the Best Life Insurance at Kneller Insurance

With life expectancy getting shorter, it is crucial to plan for unexpected scenarios, and an essential part of thinking it through involves planning the funeral and how to pay for it. If you are looking for suitable life insurance, you can connect with us at Kneller Insurance to know how it can help you preplan your funeral expenses.

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