How to Arrange a Respectable Funeral for Yourself?
Funeral insurance is taken to cover the expenses of your funeral, as weird as it sounds it is true that we all will die one day and every person has the right to a respectable funeral, so what is wrong in pre-arranging it. Funeral expenses include expenses for the mortuary, casket, cemetery plot and a headstone. These are just the basics of a funeral, and then there are other things to be taken care of like the expenses of a funeral director if you are taking the help of any funeral home and so on. This is where the funeral insurance can help you and your loved ones.
How it works?
You opt for a plan at a premium you can pay. The premium will be the same all through the tenure of the policy. The plan collects funds much like a savings plan and if you have taken the policy early on there might be quite a sizeable amount accumulated which can take care of the funeral expenses and then some more. Most people get confused between life insurance and funeral insurance as both pay out only after the policy holder dies and the benefits are given to the beneficiary. Although it seems similar at the first instance, there are some key differences between the two.
The first is the underwriting; you won’t need to undergo any medical exam to take funeral insurance.
Secondly there is no increase in the premium and no decrease in the benefit.
One similarity between the two life insurance and funeral insurance is you can borrow from the policy’s accumulated cash value.
This insurance is not just a long term planning. There are insurance companies that offer a payout if you die within the first one year of taking the policy due to an accident. After the first year all causes of death are covered. Another unique feature that some companies offer is refund of the premiums to the beneficiary if you die within the first one year of taking the policy either due to sickness or by suicide. So before you take up any policy you want to know exactly what the insurance company has on offer for you.
With some of the policies that are available you can do for long after you are gone. You would have to put your feelings about it aside and focus on what needs to be done, and with little bit of patience and some sound advice from a broker or financial advisor you can make an informed decision based on relevant and important information that will help you cover your financial concerns for many years to come.