What is Funeral Life Insurance?

Funeral Life Insurance – Planning For Funeral Costs

I know that it sounds odd to use the word funeral and life in the same phrase, as in funeral life insurance! This product is meant to cover the expense of funerals and burials, which can cost thousands of dollars these days.  It is, actually, a smaller whole life policy that has been designed for this reason, and also designed as an affordable way to plan for funerals and other end-of-life expenses.

Note: More About Low Cost Funeral Life Insurance

The face values vary, but are usually from a few thousand dollars to a few tens of thousands of dollars. It is hard to get exact figures for the average costs of funerals today, but estimates run from $8,000 – $10,000. Besides, other expenses tend to crop up when a loved one passes away. People take time off of work, they may have to travel, guests have to be fed. So it is always better, as in all things, to have more money than you need than less money than you need.

Funeral Insurance vs. Pre Payed Funeral Plans

Sometimes you may also see this product called some other names like burial policies, final expense insurance, or senior life insurance. These different titles all, pretty much, refer to the same product. Another product, called a pre-pay funeral plan, is a bit different.

I am never one to tell people what they should purchase, a funeral policy or a pre-paid plan, but just one to ask them to compare products before they buy! Here, in my hunble opinion, are some advantages of a burial policy.

Advantages of Funeral Life Insurance

• The death benefit is cash for the beneficiary to use as they see fit.
• Many funeral homes will accept an assignment of the death benefit to pay for funeral expenses.
• The family is not locked into one funeral home or company.
• With pre-paid funeral plans, you may actually be paying interest on a loan, so even though you have small monthly payments to make, you may pay more in the long run.

Of course, there are also some advantages to pre-paid plans, but that is not in the scope of this article today.

Sometimes a person will purchase a policy for themselves. An average purchase is probably middle aged and thinking about retirement or estate planning. Sometimes the family will purchase the plan for a loved one. They do this to make sure they can take care of their family member when the time comes.

Find Affordable Burial Policies

Rates will vary by age, general health, and where you live.  Of course, rates will also vary by insurer, and so will the types of plans you can buy!   It is quite easy to compare premiums here: Final Expense Insurance Rates.

Also, if you would like more information, refer to this article: What Is A Burial Policy?

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